Hero Motors, an auto components maker led by Pankaj Munjal, has filed a Draft Red Herring Prospectus (DRHP) for an IPO worth ₹900 crore. The offering includes a fresh issue of ₹500 crore, with the remaining ₹400 crore being an offer for sale (OFS) by promoters OP Munjal Holdings, Bhagyoday Investments, and Hero Cycles.
The company plans to use the funds from the fresh issue to repay outstanding borrowings, expand its Noida facility, and support working capital needs. Hero Motors also mentioned the possibility of a pre-IPO placement of ₹100 crore, which would reduce the fresh issue amount if it occurs.
Hero Motors specializes in engine and transmission components for two-wheelers, with a global client base that includes BMW, Ducati, and Harley Davidson. In FY24, the company’s revenue reached ₹1,064.4 crore, showing a strong growth trend from ₹914.2 crore in FY22. The firm’s gross profit increased to ₹419.4 crore in FY24, marking a 22% compound annual growth rate.
The IPO is being managed by ICICI Securities, JM Financial, and DAM Capital Advisors. Hero Motors is known for its leadership in automotive technology, providing both electric and non-electric powertrain solutions to original equipment manufacturers (OEMs) across the United States, India, Europe, and the ASEAN region.
