Hero Motors Filed DRHP with SEBI: Most Awaited IPO

Hero Motors Limited has officially filed a Draft Red Herring Prospectus (DRHP) with the SEBI for its upcoming IPO (Initial Public Offering). The public issue is a 100% book-built offer. This upcoming IPO is offering a fresh issue worth up to Rs 500 Crore of equity shares and an offer for sale worth up to Rs. 400 Crore equity shares, which sums up an aggregate total size of up to Rs 900 Crore equity shares. The face value mentioned by the company is Rs. 10 for each share. This new IPO issue is being made through the book-building process with a reservation of not more than 50% of the new offer reserved for Qualified Institutional Investors, not less than 15% reserved for NII and the remaining 35% or more reserved for Retail Individuals. So, when will the IPO come? The Application for public issue and subscription opening/closing dates and other important dates will be declared soon and the public issue price band at which you can bid will be declared soon as well.

Also Read | Unimech Aerospace and Manufacturing Filed DRHP: Upcoming IPO?

About Hero Motors Limited

Hero Motors Limited, established in 2001, is a leading Indian automotive technology company specializing in powertrain solutions for global OEMs. The company designs, manufactures, and supplies advanced powertrain systems for electric and non-electric vehicles, including two-wheelers, e-bikes, and heavy-duty vehicles. Notably, it is the only Indian manufacturer of CVT hubs for e-bikes and integrated electric powertrain products. With strategic acquisitions like Hewland and partnerships such as Yamaha Motors Japan, Hero Briggs & Stratton has expanded its global presence and capabilities, focusing on innovation and advanced technology in the automotive and micro mobility sectors.

Hero Motors IPO Objectives

The Net Proceeds are proposed to be utilized for several purposes, such as the repayment, prepayment, or redemption, either in full or in part, of certain outstanding borrowings availed by the company. Next the funds will be directed towards capital expenditure, specifically for the purchase of equipment needed to expand the capacity of the company's facility in Gautam Buddha Nagar, Uttar Pradesh. Other uses include funding the company's working capital requirements and for general corporate purposes.

Financials of the Company

As of March 31, 2024, the company's assets rose to Rs 1,059.86 crores, showing an increase of 6.84% compared to March 31, 2023. Revenue grew by 0.93%, reaching Rs 1,064.39 crores. However, Profit after tax saw a decline of -57.94%, totalling Rs 17.04 crore compared to FY23, which was Rs 40.51 crore. The total borrowing also increased from Rs 269.61 crores to Rs 304 crores. These figures demonstrate substantial growth in key financial areas, although the rise in borrowing and decline in PAT indicates a need to monitor the financial levels closely.

Lead manager(s), Registrar of IPO & Promoter(s) of the Company

The issue has been managed by ICICI Securities Limited, DAM Capital Advisors Limited and JM Financial Limited. For the company, the registrar dealing with the issue is responsible for its management, which is KFin Technologies Limited. Pankaj Munjal, Charu Munjal, Abhishek Munjal, and O P Munjal Holdings are the promoters of the company.

Also Read | JSW Cement Filed DRHP with SEBI: Know More About Upcoming IPO