Hero Motors IPO: All-round selling by foreign investors has spoiled the mood of the stock market. So its impact has started falling on the IPO market as well. Hero Motors Limited, the auto-component firm of the country’s largest two-wheeler company Hero Motors Company Group, has put on hold the idea of launching an IPO of the company. Hero Motors Limited has withdrawn the draft paper filed with the stock market regulator SEBI for launching an IPO worth Rs 900 crore.
Fresh issue of Rs 500 crore in IPO
According to the draft paper for the proposed IPO that Hero Motors had submitted to SEBI, in the Rs 900 crore IPO, the company planned to sell shares worth Rs 500 crore through fresh issue and shares worth Rs 400 crore through offer for sale. Was. The promoters of the company planned to sell their stake in the company through Offer for Sale. In the offer for sale, OP Munjal Holdings was going to sell shares worth Rs 250 crore, Bhagyodaya Investments and Hero Cycles worth Rs 75 crore. Promoter OP Munjal Holdings has the maximum stake of 71.55 percent in Hero Motors. Whereas Bhagyodaya Investments holds 6.28 percent stake and Hero Cycles holds 2.03 percent stake. South Asia Growth Invest LLC holds 12.27 percent stake in Hero Motors.
IPO proposal withdrawn on October 5
Hero Motors Limited had filed draft papers with SEBI to launch an IPO in August 2024. Explaining the reasons for withdrawal of the IPO, the company said, Hero Motors Limited had withdrawn the draft paper on 5 October 2024. According to the draft papers, there was a plan to use the money raised by the company by issuing new shares to repay the loan and purchase equipment for the expansion of the company’s plant in Gautam Buddha Nagar, Uttar Pradesh.
BMW and Ducati are also customers
Hero Motors Limited manufactures both electric and non-electric powertrains. OEMs from America, Europe, India and ASEAN are its customers. Companies like BMW, Ducati, Envylo International, Formula Motorsport, Humming Bird EV, HWA are the customers of Hero Motors. Hero Motors is the only company in India that manufactures CVTs for global e-bike companies. The company has 6 manufacturing facilities in India, Britain and Thailand.
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