Hero Motors IPO opens Sept 16, price band at ₹79-₹84 per share; check lot size and key dates

Hero Motors, a manufacturer of automotive components and solutions, has fixed a price band of ₹79 to ₹84 per share for its ₹1,000 crore initial public offering (IPO), which will open for subscription on September 16.

The three-day public issue will end on September 18, while the anchor investor portion will go live on September 15, according to the red herring prospectus (RHP).

The IPO consists of a fresh issue of 7.14 crore equity shares aggregating to ₹600 crore, along with an offer for sale (OFS) of 4.76 crore shares worth ₹400 crore by promoters OP Munjal Holdings and Hero Cycles.

The fresh issue proceeds will be used for repayment of certain outstanding borrowings, purchase of equipment required for expansion in capacity of its Gautam Buddha Nagar facility, funding inorganic growth via unidentified acquisitions and general corporate purposes.

"We expect to receive the benefits of listing of the equity shares on the Stock Exchanges and creation of a public market for our equity shares in India," the company said.

Hero Motors IPO: Lot size

Retail investors can bid for a minimum of 178 shares and in multiples thereafter. Half of the net offer is reserved for qualified institutional buyers, 35% for retail investors and 15% for non-institutional investors.

Hero Motors IPO: Allotment and listing date

The equity shares of the company are expected to be listed on both the BSE and the National Stock Exchange (NSE) on September 23.

Hero Motors is a leading automotive technology company engaged in designing, developing, manufacturing and supplying highly engineered powertrain solutions, serving automotive original equipment manufacturers (OEMs) in India, the United States, Europe and the Association of Southeast Asian Nations (ASEAN) region.

It is a fully integrated powertrain systems provider offering complete solutions including services for designing, prototyping, developing, validating, and delivering system-level and component-level powertrain solutions for both non-electric and electric powertrains.

Its offerings find application in two-wheelers, e-bikes, performance automotive, off-road vehicles, hybrid and electric cars, heavy-duty vehicles, and electric vertical take-off and landing (“eVTOL”) categories.

Hero Motors Ltd's global customers include BMW, Ducati Motor Holding S.P.A., Formula Motorsport, Enviolo International Inc, Formula Motorsport Ltd, Hummingbird EV, HWA and leading global electric bicycle manufacturers and other mobility applications such as aerospace.