Latest news with #OPMunjalHoldings
NDTV
01-07-2025
- 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 The auto components manufacturer had previously withdrawn their Rs 900 crore IPO papers back in October 2024 after filing them with SEBI in August 2024.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.
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Business Standard
01-07-2025
- Automotive
- Business Standard
Hero Motors refiles DRHP, raises IPO size to ₹1,200-cr; key details here
Hero Motors IPO: Auto components maker Hero Motors has refiled its draft red herring prospectus (DRHP) with the markets regulator Securities and Exchange Board of India (Sebi) for its maiden public issue. The company has increased the issue size from ₹900 crore to ₹1,200 crore. In August last year, the company filed papers for a ₹900 crore IPO. The Hero Motors IPO with a face value of ₹10 per share comprises a combination of fresh issue up to ₹800 crore and an offer for sale (OFS) up to ₹400 crore by promoters. The OFS component includes ₹390 crore worth of shares by OP Munjal Holdings, and ₹5 crore each by Bhagyoday Investments and Hero Cycles, as per the DRHP. According to the DRHP, not more than 50 per cent of the issue shall be reserved for qualified institutional buyers (QIBs), not less than 15 per cent for non-institutional investors (NIIs), and 35 per cent for retail individual investors. Hero Motors IPO registrar, lead managers Kfin Technologies is the registrar for the issue. ICICI Securities, DAM Capital Advisors, and JM Financial are the book-running lead managers of the issue. Hero Motors IPO objective According to the DRHP, the company plans to utilise ₹285 crore from the net issue proceeds for repayment or prepayment or redemption of certain outstanding borrowings availed by itself and ₹237 crore for the purchase of equipment required for expansion in capacity of its facility in Gautam Buddha Nagar, Uttar Pradesh. The remaining funds will be used for funding inorganic growth through unidentified acquisitions, other strategic initiatives and general corporate purposes. Hero Motors financial snapshot In the nine-month period ended December 31, 2024, the company reported revenue from operations of ₹807.2 crore and profit after tax of ₹22.39 crore. In the financial year 2023-24 (FY24), Hero Motors reported revenue from operations of ₹1,064.38 crore, marginally up from 1,054.6 crore in the previous financial year. The company's earnings before interest, tax, depreciation and amortisation came in at ₹82.8 crore in FY24 compared to ₹97.35 crore in the previous fiscal. Its profit after tax (PAT) stood at ₹17 crore, down around 58 per cent from 40.5 crore in the FY23. About Hero Motors Hero Motors is the automotive flagship company of the Hero Group which is one of the world's largest two-wheeler and cycle manufacturers. The company offers comprehensive solutions including services for designing, prototyping, validating, developing, and delivering system-level powertrain solutions for both electric as well as non-electric powertrains. Its operations are organised into Powertrain Solutions and Alloys and Metallics business segments. Pankaj Munjal, Charu Munjal, Abhishek Munjal and OP Munjal Holdings are the promoters of the company. As per the DRHP, the promoters currently own 91.65 per cent stake in the company.
