Hero Motors IPO: Draft papers filed to raise ₹900 crore; check details

Hero Motors, the auto components arm of Hero Motor Company (HMC), filed the draft papers with the Securities and Exchange Board of India (SEBI) to raise up to ₹900 crore.

The South Asia Growth Invest-backed company submitted the draft red-herring prospectus (DRHP) on Friday, August 23. The IPO will be a combination of a fresh issue of equity shares, and an offer for sale (OFS) component.

Through the fresh issuance of shares, Hero Motors aims to mop up a total of ₹500 crore. The company also intends to raise up to ₹400 crore via the OFS route.

Promoters to offload stake

O P Munjal Holdings, the promoter entity which holds the maximum stake of 71.55% in the company, will be offloading shares worth ₹250 crore through the offer for sale.

Bhagyoday Investments and Hero Cycles, which own 6.28% and 2.03% respectively, will be offloading shares worth ₹75 crore each.

Meanwhile, South Asia Growth Invest LLC, which owns 12.27% stake in the company, will not be trimming its shareholding in the upcoming IPO.

Notably, Hero Motors offers solutions for designing, validating, developing, and delivering system-level transmission solutions for both electric as well as non-electric powertrains and metallic components.

The company's products find application in two-wheelers, performance automotive, e-bikes, off-road vehicles, electric and hybrid cars, heavy duty vehicles, and electric vertical take-off and landing (eVTOL) categories. The company caters to original equipment manufacturers (OEMs) in United States, Europe, India and the Association of Southeast Asian Nations (ASEAN) region.