Hero Motors refiles DRHP with SEBI for IPO, increases issue size to ₹1,200 crore

Hero Motors IPO: Auto components maker Hero Motors Ltd has refiled its preliminary IPO papers with the capital markets regulator, the Securities and Exchange Board of India (SEBI), to raise funds via an initial public offering.

As per the draft red herring prospectus (DRHP), the IPO size has been increased to ₹1,200 crore from ₹900 crore earlier.

The proposed initial share sale is a fresh issuance of shares worth ₹800 crore and an offer for sale of ₹400 crore.

Under the OFS, OP Munjal Holding will sell shares worth ₹390 crore. Bhagyoday Investments Pvt Ltd and Hero Cycles Ltd will also offload shares valued at ₹5 crore, respectively.

The fresh issue proceeds will be utilised for the following objects:

• Repayment of certain borrowings availed by the firm
• Capital expenditure towards purchase of equipment need for expansion in capacity of its Gautam Buddha Nagar facility
• Fund inorganic growth 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," Hero Motors added.

Half of the net offer has been reserved for qualified institutional buyers, 15% for non-institutional investors and 35% for retail investors.

ICICI Securities, DAM Capital Advisors, and JM Financial are the issue's book-running lead managers, while KFin Technologies is the registrar.

The company, in consultation with the merchant bankers, may consider a pre-IPO placement of up to ₹160 crore.

About Hero Motors Ltd

Hero Motors is among India's leading automotive technology firms engaged in the designing, manufacturing and supply of highly engineered powertrain solutions serving automotive original equipment manufacturers in India, the United States, Europe and the Association of Southeast Asian Nations (ASEAN) region.

It caters to the needs of global customers like BMW AG, Ducati, Formula Motorsport, Enviolo, HWA, and Hummingbird EV