Hero Motors Company Group, one of the most prominent corporate houses in the country, is soon going to make a new splash in the stock market. Hero Motors, the group’s auto component manufacturing company, is coming up with an IPO of Rs 900 crore. The draft for the proposed IPO has been submitted to market regulator SEBI.
Fresh issue of Rs 500 crore in IPO
Hero Motors submitted a draft to SEBI on August 23 for its proposed IPO. According to the draft of the IPO, the proposal put forward by the company to the market regulator includes a fresh issue of shares worth Rs 500 crore and an offer for sale of Rs 400 crore. Through the offer for sale, the promoters of the company want to reduce their stake in the company by selling their share of shares.
Promoters and these investors will sell shares in OFS
Hero Motors is supported by South Asia Growth Invest. In the IPO, the company’s promoter OP Munjal Holdings plans to raise Rs 250 crore by selling its share of shares. Apart from that, Bhagyodaya Investments and Hero Cycles are both going to sell shares worth Rs 75 crore each in the OFS.
Currently their stake in Hero Motors
Promoter OP Munjal Holdings currently holds the highest stake of 71.55 percent in Hero Motors. Bhagyodaya Investments holds 6.28 percent and Hero Cycles holds 2.03 percent. South Asia Growth Invest LLC holds 12.27 percent stake in Hero Motors.
BMW and Ducati are also customers
The company manufactures both electric and non-electric powertrains. Its customers include many OEMs from the US, Europe, India and ASEAN. Its major customers include big names like BMW, Ducati, Envilo International, Formula Motorsport, Humming Bird EV, HWA. Hero Motors is the only Indian company that manufactures CVTs for global e-bike companies. The company has 6 manufacturing facilities in India, UK and Thailand.
IPO boom in Indian market
The IPO of Hero Motors is coming at a time when there is a boom of IPOs in the Indian stock market. Auto sector companies are seeing a lot of growth amid IPOs coming at a record pace. After a gap of decades, the first IPO of the auto sector has come recently, which was brought by Ola Electric. The IPO also got a good response in the market. South Korean automobile company Hyundai is also preparing to bring an IPO of its Indian unit.
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