Hero Motors files DRHP for Rs 1,200 crore IPO
Hero Motors has filed draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI) to raise Rs 1,200 crore through an initial public offering (IPO). The IPO is a combination of a fresh issue of equity shares worth Rs 800 crore and an offer-for-sale (OFS) of shares worth Rs 400 crore by promoters. In August 2024, Hero Motors filed preliminary papers with SEBI to raise Rs 900 crore through an initial share sale. Later in October, the company withdrew its draft documents.
Proceeds from the fresh issue to the extent of Rs 285 crore will be used for payment of debt, Rs 237 crore for purchase of equipment for capacity expansion at the company's facility in Gautam Buddha Nagar, Uttar Pradesh. Also, a portion will be utilised for funding inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes. ICICI Securities, DAM Capital Advisors, and JM Financial are the book-running lead managers to the issue.
Hero Motors is one of India's leading automotive technology companies engaged in designing, developing, manufacturing and supplying highly engineered powertrain solutions catering to automotive original equipment manufacturers (OEMs) in the United States, Europe, India and the Association of Southeast Asian Nations (ASEAN,) region.
