Hero Motors Withdraws Rs 900 Crore IPO Plans

Hero Motors, the automotive components arm of the Hero Motors Company (HMC) Group, has officially withdrawn its plans for an initial public offering (IPO) worth ₹900 crore, as noted in an update from market regulator SEBI on October 5, 2024.

The company had initially planned to raise ₹500 crore through a fresh issuance of equity shares, with an additional ₹400 crore via an Offer for Sale (OFS) by existing shareholders. The OFS component involved the sale of shares by O P Munjal Holdings (₹250 crore), Bhagyoday Investments (₹75 crore), and Hero Cycles (₹75 crore). Hero Motors had filed its Draft Red Herring Prospectus (DRHP) with SEBI in August to seek approval for the IPO.

Although no specific reason was disclosed for withdrawing the DRHP, it was originally planned that proceeds from the fresh issue would be used for debt repayment and to fund the purchase of new equipment to expand the company’s facility in Gautam Buddha Nagar, Uttar Pradesh.

Hero Motors is a prominent player in India’s automotive technology sector, providing advanced powertrain solutions for various automotive original equipment manufacturers (OEMs) in regions like the United States, Europe, India, and the ASEAN markets. Their products include both electric and non-electric powertrains for a wide array of vehicles, including two-wheelers, e-bikes, off-road vehicles, electric and hybrid cars, and heavy-duty vehicles.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult a professional for any investment-related decisions.