New Delhi:Auto parts maker Hero Motors has filed draft papers with markets regulator Sebi to raise Rs 1,200 crore through an initial public offering (IPO).
The IPO is a combination of a fresh issue of equity shares worth Rs 800 crore and an offer-for-sale (OFS) of shares worth Rs 400 crore by promoters, according to the draft papers filed on Monday.
As a part of the OFS, O P Munjal Holdings will be offloading shares to the tune of Rs 390 crore; and Bhagyoday Investments and Hero Cycles will divest shares valued Rs 5 crore each.Proceeds from the fresh issue to the extent of Rs 285 crore will be used for payment of debt, Rs 237 crore for purchase of equipment for capacity expansion at the company's facility in Gautam Buddha Nagar, Uttar Pradesh.Also, a portion will be utilised for funding inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes.
The company plans to mobilise up to Rs 160 crore in pre-IPO round. If it completes the pre-IPO placement, the fresh issue size will get reduced to the extent of such amount.In August 2024, Hero Motors, had filed preliminary papers with Sebi to raise Rs 900 crore through an initial share-sale.
Later in October, the company withdrew its draft documents.Hero Motors is one of India's leading automotive technology companies engaged in designing, developing, manufacturing and supplying highly engineered powertrain solutions catering to automotive original equipment manufacturers (OEMs) in the United States, Europe, India and the Association of Southeast Asian Nations (ASEAN,) region.
It caters to the requirements of its global customers including BMW AG, Ducati Motor Holding SPA, Enviolo International Inc and Formula Motorsport Ltd and Hummingbird EV.
As of December 31, 2024, the company operated six manufacturing facilities spread across India, United Kingdom and Thailand.
Hero Motors' revenue from operations stood at Rs 1,064.39 crore in fiscal year 2024 and profit after tax stood at Rs 17.04 crore.ICICI Securities, DAM Capital Advisors, and JM Financial are the book-running lead managers to the issue.
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