CORPORATE
Component company Hero Motors withdraws Rs 900-crore IPO
- IBJ Bureau
- Oct 08, 2024
Hero Motors, the auto component company of the Hero Motors Company Group, has withdrawn its documents for an initial public offer (IPO) worth Rs 900 crore, an update with markets regulator SEBI on Monday shows.
In its draft papers, the company had proposed to raise Rs 500 crore through a fresh issue of equity shares and an Offer For Sale (OFS) of shares valued at Rs 400 crore by promoters.
Under the OFS, OP Munjal Holdings was offloading shares valued at Rs 250 crore, while Bhagyoday Investments and Hero Cycles were selling shares to the tune of Rs 75 crore each.
The company had filed its Draft Red Herring Prospectus (DRHP) in August with SEBI to seek the regulator’s nod to float the IPO.
Without disclosing the reason, the company said that its “DRHP (was) withdrawn on October 5, 2024”.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 India’s leading automotive technology company, engaged in designing, developing, manufacturing and supplying high-engineered powertrain solutions to automotive OEMs in the United States, Europe, India and the ASEAN region.
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