NEW DELHI: Hero Motors, the auto-components firm of Hero Motors Company (HMC) Group, on Saturday filed preliminary papers with markets regulator Sebi to raise Rs 900 crore via an initial public offering (IPO).
The IPO is a combination of a fresh issue of equity shares worth Rs 500 crore and an offer-for-sale (OFS) at Rs 400 crore by promoters, as per the draft red herring prospectus.
The OFS includes Rs 250 crore worth shares by O P Munjal Holdings, and Rs 75 crore each by Bhagyoday Investments and Hero Cycles. It may consider a pre-IPO placement of Rs 100 crore. Proceeds from the fresh issue of Rs 202 crore will be used for debt payment, Rs 124 crore for buying equipment for expansion in capacity of the company’s facility in Gautam Buddha Nagar, Uttar Pradesh. Hero Motors is India’s leading automotive technology company engaged in designing, developing, manufacturing and supplying high engineered powertrain solutions provider to automotive OEMs in the United States, Europe, India, and the ASEAN region.