Hero Motors Refiles IPO Papers, Increases Issue Size To Rs 1,200 Crore

Hero Motors, the auto components maker, has refiled its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India for an initial public offering (IPO) of Rs 1,200 crore. This reflects an increase in the proposed issue size compared to the Rs 900 crore filed in August 2024.

The IPO features a fresh issue of up to Rs 800 crore along with an offer for sale totaling up to Rs 400 crore from the promoters. Within the offer for sale, there are shares valued at Rs 390 crore from O P Munjal Holdings and Rs 5 crore each from Bhagyoday Investments and Hero Cycles.

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The company aims to allocate Rs 285 crore from the fresh issue to repay or prepay existing loans, while Rs 237 crore will be directed toward expanding capacity at its facility in Gautam Buddha Nagar, Uttar Pradesh. Hero Motors also plans to use the funds for inorganic growth through acquisitions and for general corporate activities.

The new filing shows the company's fresh effort to enter public markets following its previous withdrawal, with the larger issue size indicating updated funding needs for debt reduction and expansion initiatives.  

The auto components manufacturer had previously withdrawn their Rs 900 crore IPO papers back in October 2024 after filing them with SEBI in August 2024. The aforementioned proposal included a fresh issue of Rs 500 crore and an offer for sale component of Rs 400 crore.

Hero Motors, managed by Pankaj Munjal, works within the auto components industry and counts BMW and Ducati as clients. Pankaj Munjal is part of the Munjal family, which operates Hero MotoCorp, the largest two-wheeler manufacturer in India by volume.