• By Kamal Kumar
  • Mon, 07 Oct 2024 07:13 PM (IST)
  • Source:JND

Hero IPO News:  Hero Motors Ltd, the auto parts company and a subsidiary of two-wheeler giant Hero Motors Company (HMC) Group, has withdrawn its Rs 900 Crore initial public offering (IPO), a Securities and Exchange Board of India (SEBI) update showed on Monday. In the draft papers, the company proposed to raise an amount of Rs 500 crore through the sale of fresh equities and an offer of sale (OFS) of Rs 400 crore by the promoters of the company.

Hero Motors Ltd had filed a draft red herring prospectus (DRHP) with the SEBI in August this year to seek its nod for the proposed IPO. Through the OFS, OP Munjal Holdings was to sell shares worth 250 crores whereas, the Hero Cycles and Bhagyoday Investments were to offload shares worth Rs 75 crore each.

The company did not disclose any reasons for backing out on the IPO. "DRHP (was) withdrawn on October 5, 2024," it said without disclosing the reasons.

Draft Papers Showed Expansion Bid By Hero

The draft papers showed Hero Motors Ltd's interest in using the capital raised through the IPO to buy equipment for capacity expansion at UP's Gautam Buddha Nagar plant. Proceeds from the fresh issue were also to be used in the company's Debt payments.

Hero Motors Ltd is one of India’s leading automotive technology companies (Source: CRISIL Report) 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.

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 as well as hybrid cars and heavy-duty vehicles.

Hero Motors operates in two segments — powertrain solutions, and alloys and metallics — and has six manufacturing facilities across India, the UK, and Thailand.