Hero Motors withdraws draft papers for Rs 900 crore IPO

Hero Motors has withdrawn its draft red herring prospectus (DRHP) with market regulator Sebi. The automobile component maker pulled out draft initial public offering (IPO) paper on October 5, 2024, as per Sebi's processing status.

Hero Motors had filed preliminary IPO documents with the Securities and Exchange Board of India (Sebi) for a Rs 900 crore IPO earlier in August 2024.

The initial share sale included a fresh issue of up to Rs 500 crore while the remaining Rs 400 crore is an offer for sale (OFS) by promoters OP Munjal Holdings, Bhagyoday Investments and Hero Cycles.

The company is owned by Pankaj Munjal, a first cousin of Hero MotoCorp Ltd's chairman Pawan Munjal. It provides powertrain solutions, for both electric and non-electric powertrains, to automotive original equipment manufacturers (OEMs).

The firm's revenue climbed from Rs 914 crore in financial year 2021-22 (FY22) to Rs 1,064 crore in FY24. Its gross profit jumped from Rs 281 crore in FY22 to Rs 419 crore in FY24 at a CAGR (compounded annual growth rate) of 22 per cent. Its gross margin grew from 30.78 per cent in FY22 to 39.40 per cent in FY24.

Last checked, promoters held a 91.65 per cent stake in the company.