The IPO will consist of a fresh issue of shares worth ₹800 crore and an offer for sale (OFS) of ₹400 crore by existing shareholders. The OFS includes ₹390 crore from O P Munjal Holdings and ₹5 crore each from Bhagyoday Investments and Hero Cycles.
The funds raised through the fresh issue will be used for debt repayment (₹285 crore), capital expenditure for expanding its Uttar Pradesh facility (₹237 crore), acquisitions, and general corporate purposes. The company may also consider a pre-IPO placement of ₹160 crore, which would reduce the fresh issue amount.
Hero Motors offers end-to-end powertrain solutions for electric and non-electric vehicles, catering to global clients including BMW, Ducati, and e-bike manufacturers. It operates six manufacturing facilities across India, the UK, and Thailand.
The company is a leading player in electric powertrain systems and the only Indian manufacturer of CVT hubs for e-bikes exported globally. It also produces performance ICE transmission systems and has expanded into the electric drive unit segment under the ‘ESYNC’ brand.
The company’s revenue rose to ₹1,064.39 crore in FY24 from ₹914.19 crore in FY22. Its profit after tax reached ₹17.04 crore in FY24 and ₹22.39 crore in the nine months ending December 2024.
ICICI Securities, DAM Capital Advisors, and JM Financial are the lead managers to the issue, with KFin Technologies acting as the registrar.
