Auto parts maker Hero Motors Ltd on Tuesday garnered nearly ₹300 crore from anchor investors ahead of its initial public offering , which opens for subscription on September 16. The company allotted 3.57 crore equity shares to anchor investors at ₹84 apiece, the top end of the IPO price band, according to a circular uploaded on BSE’s website.
Institutions that participated in the anchor book include ICICI Prudential Life Insurance Company Ltd, 3P India Equity Fund 1M, Edelweiss Life Insurance Company Ltd, Societe Generale and ASAS Global Fund Incorporated VCC Sub Fund, among others. Hero Motors has fixed a price band of ₹79-84 per equity share for its ₹1,000-crore IPO, which will remain open for subscription till September 18.
The IPO comprises a fresh issue of equity shares aggregating up to ₹600 crore and an offer-for-sale of shares worth up to ₹400 crore by promoters. Under the OFS, O P Munjal Holdings will divest shares worth Rs 395 crore, while Hero Cycles Ltd will sell shares worth ₹5 crore.
Of the fresh issue proceeds, Rs 190 crore will be used for repayment or prepayment of certain outstanding borrowings, while Rs 200 crore will be utilised for purchasing equipment required for capacity expansion at the company’s facility in Gautam Buddha Nagar, Uttar Pradesh.
Hero Motors is an automotive technology company engaged in designing, developing, manufacturing and supplying engineered powertrain solutions to automotive original equipment manufacturers in the US, Europe, India and the Association of Southeast Asian Nations region.
The company caters to global customers including BMW AG, Ducati Motor Holding S. P. A., Enviolo International Inc., Formula Motorsport Ltd and Hummingbird EV. The company’s shares are expected to debut on the stock market on September 23.