Latest news with #HeroMotors
The Hindu
a day ago
- Automotive
- The Hindu
Hero Motors files draft papers for ₹1,200-crore IPO
Auto parts maker Hero Motors has filed draft papers with the markets regulator SEBI to raise ₹1,200 crore through an initial public offering (IPO). The IPO is a combination of a fresh issue of equity shares worth ₹800 crore and an offer-for-sale (OFS) of shares worth ₹400 crore by promoters, according to the draft papers filed on Monday (June 30, 2025). As a part of the OFS, O.P. Munjal Holdings will be offloading shares to the tune of ₹390 crore, and Bhagyoday Investments and Hero Cycles will divest shares valued at ₹5 crore each. Proceeds from the fresh issue to the extent of ₹285 crore will be used for payment of debt, and ₹237 crore for the 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. The company plans to mobilise up to ₹160 crore in the pre-IPO round. If it completes the pre-IPO placement, the fresh issue size will get reduced to the extent of such amount. In August 2024, Hero Motors filed preliminary papers with SEBI to raise ₹900 crore through an initial share sale. Later in October, the company withdrew its draft documents. 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. It caters to the requirements of its global customers, including BMW AG, Ducati Motor Holding SPA, Enviolo International Inc. and Formula Motorsport Ltd. and Hummingbird EV. As of December 31, 2024, the company operated six manufacturing facilities spread across India, the United Kingdom, and Thailand. Hero Motors' revenue from operations stood at ₹1,064.39 crore in fiscal year 2024, and profit after tax stood at ₹17.04 crore. ICICI Securities, DAM Capital Advisors, and JM Financial are the book-running lead managers to the issue.
Time of India
a day ago
- Automotive
- Time of India
IPO watch: Hero Motors refiles IPO papers with Rs 1,200 crore issue, ups fresh component to Rs 800 crore
Hero Motors IPO: Hero Motors has refiled its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for an initial public offering (IPO) with an increased issue size of Rs 1,200 crore. The revised IPO will consist of a fresh issue of equity shares worth up to Rs 800 crore and an offer for sale (OFS) of up to Rs 400 crore by promoters. According to the DRHP quoted in an ET report, the OFS portion includes Rs 390 crore worth of shares from O P Munjal Holdings, and Rs 5 crore each from Bhagyoday Investments and Hero Cycles. The company may also explore a pre-IPO placement of up to Rs 160 crore, which would reduce the size of the fresh issue accordingly, the report said. Led by Pankaj Munjal, a member of the Munjal family behind Hero MotoCorp, Hero Motors counts premium global brands like BMW, Ducati, and Harley-Davidson among its clients. The proceeds from the IPO will be used primarily to reduce debt and for the purchase of capital equipment to expand its manufacturing facility in Uttar Pradesh. As per the DRHP, not more than 50% of the IPO will be reserved for qualified institutional buyers (QIBs), while a minimum of 15% will be allocated to non-institutional investors and 35% to retail investors. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Free P2,000 GCash eGift UnionBank Credit Card Apply Now Undo The IPO will be conducted through a book-building process, according to the report. Hero Motors had originally filed IPO papers in August 2023 for a Rs 900 crore issue. Promoters currently hold a 91.65% stake in the company, which manufactures engine and transmission components for two-wheelers. In FY24, 49% of Hero Motors' revenue came from powertrain solutions and 51% from its alloys and metallics (A&M) segment. Geographically, 59% of its FY24 revenue came from India, followed by 29% from Europe and 8% from the US. The company's revenue from operations rose from Rs 914.2 crore in FY22 to Rs 1,064.4 crore in FY24, while gross profit grew at a CAGR of 22% from Rs 281.4 crore to Rs 419.4 crore during the same period. Gross margins improved significantly from 30.78% in FY22 to 39.40% in FY24. ICICI Securities, DAM Capital Advisors, and JM Financial are acting as book-running lead managers to the issue, and KFin Technologies is the registrar. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
2 days ago
- Business
- Time of India
Two Sharp with ET: RBI flags fintech risks, Hero Motors ups IPO size to ₹1,200 crore
In today's episode of Two Sharp with ET, we decode the RBI's latest Financial Stability Report, which paints a picture of resilience but flags rising stress in fintech loans and defaults in small towns. Additionally, Hero Motors reboots its IPO with a 33% larger offer at ₹1,200 crore, aiming to reduce debt and fuel expansion. Show more Show less
NDTV
2 days ago
- Automotive
- NDTV
Hero Motors Refiles IPO Papers, Increases Issue Size To Rs 1,200 Crore
Hero Motors, the auto components maker, has refiled its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India for an initial public offering (IPO) of Rs 1,200 crore. This reflects an increase in the proposed issue size compared to the Rs 900 crore filed in August 2024. The IPO features a fresh issue of up to Rs 800 crore along with an offer for sale totaling up to Rs 400 crore from the promoters. Within the offer for sale, there are shares valued at Rs 390 crore from O P Munjal Holdings and Rs 5 crore each from Bhagyoday Investments and Hero Cycles. Also Read: Suzuki Motorcycle India Reports 8 Percent YoY Growth In June 2025 Sales The company aims to allocate Rs 285 crore from the fresh issue to repay or prepay existing loans, while Rs 237 crore will be directed toward expanding capacity at its facility in Gautam Buddha Nagar, Uttar Pradesh. Hero Motors also plans to use the funds for inorganic growth through acquisitions and for general corporate activities. The new filing shows the company's fresh effort to enter public markets following its previous withdrawal, with the larger issue size indicating updated funding needs for debt reduction and expansion initiatives. The auto components manufacturer had previously withdrawn their Rs 900 crore IPO papers back in October 2024 after filing them with SEBI in August 2024. The aforementioned proposal included a fresh issue of Rs 500 crore and an offer for sale component of Rs 400 crore. Hero Motors, managed by Pankaj Munjal, works within the auto components industry and counts BMW and Ducati as clients. Pankaj Munjal is part of the Munjal family, which operates Hero MotoCorp, the largest two-wheeler manufacturer in India by volume.
Time of India
2 days ago
- Automotive
- Time of India
Hero Motors refiles DRHP for ₹1,200 cr IPO to fuel expansion and debt repayment
Hero Motors , a leading automotive technology company backed by South Asia Growth Invest, has refiled its Draft Red Herring Prospectus (DRHP) with SEBI to raise ₹1 ,200 crore through an initial public offering ( IPO ). The issue comprises a fresh issue of ₹800 crore and an offer for sale (OFS) of ₹400 crore by promoters. The OFS includes ₹390 crore worth of shares by O P Munjal Holdings, and ₹5 crore each by Bhagyoday Investments and Hero Cycles. Proceeds from the fresh issue will be used for debt repayment (₹285 crore), capacity expansion at the Gautam Buddha Nagar facility (₹237 crore), strategic acquisitions, and general corporate purposes. Hero Motors may also consider a pre-IPO placement of ₹160 crore, which will reduce the size of the fresh issue if executed. IPO book The IPO will follow the book-building process with 50per cent reserved for Qualified Institutional Buyers (QIBs), 15per cent for Non-Institutional Investors (NIIs), and 35per cent for retail investors. Hero Motors provides advanced powertrain solutions to leading global OEMs such as BMW, Ducati, Enviolo, Formula Motorsport, and Hummingbird EV. The company operates in both electric and non-electric powertrain segments, serving applications in two-wheelers, performance vehicles, EVs, e-bikes, and eVTOLs. With six manufacturing facilities across India, UK, and Thailand, Hero Motors has reported strong financial growth — revenues rose to ₹1,064.39 crore in FY24, with a profit after tax of ₹17.04 crore, and further improvement in FY25's first nine months. ICICI Securities, DAM Capital, and JM Financial are the book-running lead managers to the issue.
