Hero Motors Plans to Raise Rs 900 Crore in Initial Public Offering

Overview

Hero Motors Limited, a prominent auto-component manufacturer, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) of Rs 900 crore. The IPO will consist of the following:

• A fresh issue of equity shares worth up to Rs 500 crore
• An offer for sale (OFS), where existing shareholders will sell their shares

Key Highlights

Here are the key highlights of Hero Motors' IPO:

• The IPO aims to raise funds for the company's expansion plans and working capital requirements.
• The company is backed by South Asia Growth Invest Pvt. Ltd. (SAGI), a leading private equity fund.
• Hero Motors may consider a pre-IPO placement of Rs 100 crore. If this placement is successfully completed, the fresh issue size will be reduced accordingly.

About Hero Motors

Hero Motors, a part of the Hero Motors Company (HMC) Group, is a leading manufacturer of automotive components. The company supplies its products to various original equipment manufacturers (OEMs) in the automotive industry.

Hero Motors has a wide range of products, including:

• Forgings and castings
• Machined components
• Assemblies

The company has a strong customer base, including major OEMs such as Hero MotoCorp, Honda Motorcycles and Scooters India, and Royal Enfield.

Conclusion

Hero Motors' IPO is a significant development for the company as it will provide it with the necessary funds to fuel its growth and expansion plans. The company's strong customer base, diversified product portfolio, and experienced management team make it a compelling investment opportunity for investors.