Hero Motors Files Draft Papers for Rs 900-Crore IPO
Hero Motors Files Draft Papers for Rs 900-Crore IPO
Hero Motors Ltd, a prominent auto-components firm under the hero Motors Company (HMC) Group, has filed preliminary documents with the Securities and Exchange Board of india (SEBI) to raise Rs 900 crore through an initial public offering (IPO). The draft red herring prospectus (DRHP) outlines the IPO structure, which includes a fresh issue of equity shares and an Offer-For-Sale (OFS) by existing shareholders.
IPO Details:
Total Amount: Rs 900 crore
Fresh Issue: Rs 500 crore
Offer-For-Sale (OFS): Rs 400 crore
OFS Breakdown:
O P Munjal Holdings: Rs 250 crore
Bhagyoday Investments: Rs 75 crore
Hero Cycles: Rs 75 crore
Pre-IPO Placement: The company may consider a pre-IPO placement of Rs 100 crore, which could reduce the data-size of the fresh issue.
Utilization of Funds:
Debt Repayment: Rs 202 crore
Expansion Equipment: Rs 124 crore for increasing capacity at the gautam Buddha nagar facility in Uttar Pradesh.
Company Overview:
Business: hero Motors is a leading automotive technology company that designs, develops, manufactures, and supplies high-engineered powertrain solutions. Their products include both electric and non-electric powertrains for various vehicles, including two-wheelers, e-bikes, off-road vehicles, electric and hybrid cars, and heavy-duty vehicles.
Segments: The company operates in two main segments:
Powertrain Solutions
Alloys and Metallics
Manufacturing Facilities: hero Motors has six manufacturing facilities across india, the United Kingdom, and Thailand.
Revenue: The company reported a revenue of Rs 1,064.4 crore in fiscal 2024.
IPO Management:
Book-Running Lead Managers:
ICICI Securities
DAM capital Advisors
JM Financial
This IPO represents a significant step for hero Motors as it seeks to expand its operations and capabilities in the global automotive market.
Hero Motors Ltd, a prominent auto-components firm under the hero Motors Company (HMC) Group, has filed preliminary documents with the Securities and Exchange Board of india (SEBI) to raise Rs 900 crore through an initial public offering (IPO). The draft red herring prospectus (DRHP) outlines the IPO structure, which includes a fresh issue of equity shares and an Offer-For-Sale (OFS) by existing shareholders.
IPO Details:
Total Amount: Rs 900 crore
Fresh Issue: Rs 500 crore
Offer-For-Sale (OFS): Rs 400 crore
OFS Breakdown:
O P Munjal Holdings: Rs 250 crore
Bhagyoday Investments: Rs 75 crore
Hero Cycles: Rs 75 crore
Pre-IPO Placement: The company may consider a pre-IPO placement of Rs 100 crore, which could reduce the data-size of the fresh issue.
Utilization of Funds:
Debt Repayment: Rs 202 crore
Expansion Equipment: Rs 124 crore for increasing capacity at the gautam Buddha nagar facility in Uttar Pradesh.
Company Overview:
Business: hero Motors is a leading automotive technology company that designs, develops, manufactures, and supplies high-engineered powertrain solutions. Their products include both electric and non-electric powertrains for various vehicles, including two-wheelers, e-bikes, off-road vehicles, electric and hybrid cars, and heavy-duty vehicles.
Segments: The company operates in two main segments:
Powertrain Solutions
Alloys and Metallics
Manufacturing Facilities: hero Motors has six manufacturing facilities across india, the United Kingdom, and Thailand.
Revenue: The company reported a revenue of Rs 1,064.4 crore in fiscal 2024.
IPO Management:
Book-Running Lead Managers:
ICICI Securities
DAM capital Advisors
JM Financial
This IPO represents a significant step for hero Motors as it seeks to expand its operations and capabilities in the global automotive market.