Hero Motors Limited Refiles DRHP for ₹1,200 Crore IPO
Auto component manufacturer, Hero Motors Limited, has refiled its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for its upcoming Initial Public Offering (IPO). The company has increased the issue size of the IPO to ₹1,200 crore. Previously, it had filed DRHP in August 2024 for an issue size of ₹900 crore.
Hero Motors IPO Details
According to the DRHP, the Hero Motors IPO comprises a combination of fresh issue up to ₹800 crore and an offer for sale (OFS) up to ₹400 crore by promoters. The equity shares are proposed to be listed on the NSE and BSE. The company will determine the price band and minimum bid lot for the IPO in consultation with the book-running lead manager.
ICICI Securities Limited, DAM Capital Advisors Limited and JM Financial Limited are the book-running lead managers of the public issue, while KFin Technologies Limited is the registrar.
Utilisation of Proceeds
The Company proposes to utilise the Net Proceeds towards the following objects:
- Repayment/prepayment, in full or in part, of certain outstanding borrowings availed by the Company;
- Capital expenditure of the Company through the purchase of equipment required for expansion in the capacity of the Gautam Buddha Nagar, Uttar Pradesh facility;
- Funding working capital requirements of the Company; and
- General corporate purposes
About Hero Motors Limited
Hero Motors Limited is an auto-component and mobility solutions provider, which is a part of the larger Hero Group. While Hero MotoCorp handles two-wheeler manufacturing, Hero Motors focuses on advanced automotive components, especially drivetrain systems like gearboxes and transmission assemblies.
The company supplies to major global OEMs, including BMW, Ducati, and Enviolo. It also has manufacturing facilities across India, the UK, and Thailand. Over time, Hero Motors has also positioned itself strongly in the electric mobility space by supplying e-bike components and e-drive systems.
In FY24, Hero Motors reported a revenue of ₹1,064.4 crore, a marginal increase from ₹1,054.6 crore in FY23. However, net profit saw a sharp decline from ₹99 crore in FY22 to ₹17 crore in FY24. Despite this, the company’s net worth grew significantly to ₹385.4 crore in FY24. The company aims to scale its exports significantly and is also exploring IPO plans to fuel further expansion and strengthen its global presence.
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