Hero Motors withdraws DRHP for IPO, says SEBI

Hero Motors has withdrawn its DRHP for the proposed IPO, capital markets regulator Securities and Exchange Board of India (SEBI) said in its update on October 5. 

The IPO was proposed to be a combination of a fresh issue of equity shares worth ₹500 crore and an offer-for-sale (OFS) of shares valued at ₹400 crore by promoters, according to the draft red herring prospectus (DRHP).

The OFS included ₹250 crore worth of shares by OP Munjal Holdings, and ₹75 crore each by Bhagyoday Investments and Hero Cycles.

Without disclosing the reason, the company said its "DRHP (was) withdrawn on  October 5, 2024". 

Going by the draft papers, proceeds from the fresh issue was proposed to be used for debt payment and purchase of equipment required for expansion in the capacity of the company's facility in Gautam Buddha Nagar, Uttar Pradesh.

Hero Motors is one of the leading automotive technology companies in India, engaged in designing, developing, manufacturing, and supplying high-engineered powertrain solutions to automotive OEMs in the United States, Europe, India, and the ASEAN region.

The company's product range includes both electric and non-electric powertrains for various vehicle categories, including two-wheelers, e-bikes, off-road vehicles, electric and hybrid cars, and heavy-duty vehicles. Hero Motors operates in two segments: powertrain solutions and alloys and metallics. It has six manufacturing facilities across India, the United Kingdom, and Thailand.

Hero Motors' revenue from operations stood ₹1,064.4 crore in fiscal 2024.

ICICI Securities, DAM Capital Advisors, and JM Financial were reported to be the book-running lead managers to the issue.

The year 2024 has turned out to be a terrific year for the primary market as a host of companies launched their public issues. As per news reports, the primary market is set to witness the IPOs worth over ₹50,000 crore (₹500 billion) around Diwali. 

Among the major upcoming offerings is carmaker Hyundai Motor India's IPO, which is expected to be the largest-ever in the country at over ₹25,000 crore (₹250 billion).