Hero Motors withdraws DRHP documents for raising Rs 900 crore through IPO | IPO News

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Hero Motors Ltd, the auto components company of the Hero Motors Company (HMC) group, has withdrawn its documents for an initial public offering (IPO) worth Rs 900 crore, an update with the securities regulator showed on Monday. Sebi markets.

In its draft documents, the company had proposed to raise Rs 500 crore through fresh issue of equity shares and offer for sale (OFS) of shares valued at Rs 400 crore by the promoters.

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Under the OFS, OP Munjal Holdings sold shares valued at Rs 250 crore while Bhagyoday Investments and Hero Cycles sold shares to the tune of Rs 75 crore each.

It had filed its draft red herring prospectus (DRHP) in August with Sebi to obtain the regulator’s approval for its IPO.

Without revealing the reason, the company indicated that its “DRHP (was) withdrawn on October 5, 2024”.

According to the draft documents, it has been proposed that the proceeds from the fresh issue will be used for payment of debt and purchase of equipment required for capacity expansion of the company’s facilities in Gautam Buddha Nagar, in Uttar Pradesh.

Hero Motors is India’s leading automotive technology company that designs, develops, manufactures and supplies high-tech powertrain solutions to automotive OEMs in the United States, Europe, India and the ASEAN region.

The Company’s product range includes electric and non-electric powertrains for various vehicle categories, including two-wheelers, electric bicycles, off-road vehicles, electric and hybrid cars and heavy-duty vehicles.

Hero Motors operates in two segments – powertrain solutions and alloys and metals – and has six manufacturing plants in India, the UK and Thailand.

(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First publication: October 7, 2024 | 5:07 p.m. STI

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