Hero Motors files for ₹900 Crore IPO, Backed by South Asia growth invest

Hero Motors, the flagship auto-components company of the Hero Motors Company (HMC) Group, has filed draft papers with the capital markets regulator SEBI to raise Rs 900 crore through an initial public offering (IPO).

The public issue will consist of a fresh issuance of equity shares worth Rs 500 crore and an offer-for-sale (OFS) of Rs 400 crore worth of shares by promoters. Promoter O P Munjal Holdings will sell Rs 250 crore worth of shares in the OFS, while Bhagyoday Investments and Hero Cycles will offload Rs 75 crore each.

Hero Motors, which is backed by investor South Asia Growth Invest LLC with a 12.27% stake, is one of India's leading automotive technology companies. It provides powertrain solutions to automotive original equipment manufacturers (OEMs) in the United States, Europe, India, and the ASEAN region.

The company operates in two segments: powertrain solutions and alloys and metallics, with six manufacturing facilities across India, the United Kingdom, and Thailand. Hero Motors earned nearly 59% of its business from India and 29% from Europe in the year ended March 2024.

The IPO proceeds will be used for general corporate purposes. ICICI Securities, DAM Capital Advisors, and JM Financial are the book-running lead managers to the issue.

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