Hero Motors, an Indian auto parts manufacturer based in Uttar Pradesh, has filed for an initial public offering (IPO) worth up to USD 140 million. The offering includes fresh shares and an offer for sale by existing shareholders. Proceeds will be used to repay debt and expand manufacturing operations.
Hero Motors, a key player in India’s auto component manufacturing industry and part of the Munjal-led Hero Group, has filed draft papers with the Securities and Exchange Board of India (SEBI) to launch an initial public offering (IPO) worth up to ₹1,200 crore (approximately USD 140.1 million).
The IPO comprises a fresh issue of equity shares worth ₹800 crore and an offer for sale (OFS) by existing shareholders amounting to ₹400 crore, according to the draft red herring prospectus filed by the company.
Headquartered in Uttar Pradesh, Hero Motors manufactures drivetrain and transmission components and serves renowned global clients such as BMW and Ducati. The company is led by Pankaj Munjal, part of the Munjal family, which also controls Hero MotoCorp, India’s largest two-wheeler manufacturer by volumes.
The company stated that the proceeds from the IPO will be used to repay borrowings and finance capital expenditure for equipment purchases to expand its manufacturing facility in Uttar Pradesh.
Despite a 1% increase in revenue, Hero Motors reported a 67% decline in net profit for the fiscal year ending March 2024 due to rising operating expenses.
ICICI Securities, JM Financial, and DAM Capital are acting as the book running lead managers for the public issue.
This public offering comes amid increasing investor interest in Indian auto and manufacturing firms, driven by a growing push for electric and hybrid mobility solutions, and strong global demand for Indian-made components.