South Asia Growth Invest backed Hero Motors, the flagship auto-components company of the Hero Motors Company (HMC) Group and one of India’s leading automotive technology companies, has filed its draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI) to raise Rs 900 crore through an initial public offering (IPO).
The IPO is a mix of fresh issue of up to Rs 500 Cr and an offer for sale up to Rs 400 Cr by promoters. The OFS includes Rs 250 crore worth shares by O P Munjal Holdings, and Rs 75 crore each by Bhagyoday Investments and Hero Cycles.
The company, in consultation with the book-running lead managers, may consider a pre-IPO placement of Rs 100 crore prior to filing of the Red Herring Prospectus. If such placement is completed, the amount will be reduced from the fresh issue.
Proceeds from the fresh issue of shares will be used to the extent of Rs 202 crore for repayment or pre-payment, in full or in part, of certain of its outstanding borrowings availed by the Company, Rs 124 crore for funding capital expenditure towards purchase of equipment required for expansion in capacity of our Gautam Buddha Nagar, Uttar Pradesh facility besides general corporate purposes.
Hero Motors is India’s leading automotive technology companies (Source: CRISIL Report) engaged in designing, developing, manufacturing and supplying highly engineered powertrain solutions provider to automotive OEMs in the United States, Europe, India, and the ASEAN region. The company’s product range includes both electric and non-electric powertrains for various vehicle categories including two-wheelers, e-bikes, off-road vehicles, electric and hybrid cars, heavy-duty vehicles, and eVTOL.
Hero Motors operates in two segments – powertrain solutions, and alloys and metallics. It has six manufacturing facilities across India, the United Kingdom, and Thailand.
The Company has a diversified customer base including global brands such as BMW AG, Ducati Motor Holding SPA, Enviolo International Inc, Formula Motorsport, HUMMINGBIRDEV Inc, HWA AG, and leading global e-bike manufacturers.
Hero Motors is the only player manufacturing and exporting CVT hubs to global e-bike OEMs from India, and the only manufacturer of integrated electric powertrain products for e-bikes in India.
Hero Motors’ revenue from operations stood ₹1,064.4 crore in the fiscal 2024.
ICICI Securities, DAM Capital Advisors, and JM Financial are the book-running lead managers to the issue.
