Hero Motors IPO: Foreign investors’ all-around selling has spoiled the mood of the stock market, and its effect has also started to be felt in the IPO market. Hero Motors Limited, the auto-component firm of the country’s largest two-wheeler company, Hero Motors Company Group, has put the idea of bringing an IPO of the company on hold. Hero Motors Limited has withdrawn the draft paper filed with the stock market regulator SEBI to get an IPO of Rs 900 crore.
Fresh Issue Of Rs 500 Crore in IPO
According to the draft paper for the proposed IPO submitted by Hero Motors to SEBI, the company planned to sell shares worth Rs 500 crore through a fresh issue and Rs 400 crore through an offer for sale in the IPO of Rs 900 crore. The company’s promoters had planned to sell their stake in the company through the offer for sale. In the offer for sale, OP Munjal Holdings was going to sell shares worth Rs 250 crore, and Bhagyoday Investments and Hero Cycles were going to sell shares worth Rs 75 crore.
Promoter OP Munjal Holdings has the highest stake, at 71.55 percent, in Hero Motors. Bhagyoday Investments has 6.28 percent, and Hero Cycles has 2.03 percent. South Asia Growth Invest LLC holds a 12.27 percent stake.
Withdrawn IPO Proposal on 5 October
Hero Motors Limited had filed draft papers with SEBI to bring an IPO in August 2024. The reason for withdrawing the IPO was that the company withdrew the draft paper on 5 October 2024. According to the draft papers, the company planned to buy equipment to expand its plant in Gautam Buddha Nagar, Uttar Pradesh, and pay off the debt through the money it raised by issuing new shares.
BMW and Ducati Are Also Customers
Hero Motors Limited manufactures both electric and non-electric powertrains. Its customers are OEMs from the US, Europe, India, and ASEAN. Companies like BMW, Ducati, Envilo International, Formula Motorsport, Humming Bird EV, and HWA are customers of Hero Motors. Hero Motors is the only company in India that manufactures CVTs for global e-bike companies. The company has 6 manufacturing facilities in India, the UK, and Thailand.
