Hero Motors Ltd, the auto-components firm of the Hero Motors Company (HMC) Group, has withdrawn its documents for an initial public offering (IPO) worth ₹900 crore, an update with markets regulator SEBI showed on Monday.
In its draft papers, the company had proposed to raise ₹500 crore through a fresh issuance of equity shares and an offer for sale (OFS) of shares valued at ₹400 crore by promoters.
Under the OFS, O P Munjal Holdings was offloading shares valued at ₹250 crore while Bhagyoday Investments and Hero Cycles were selling shares to the tune of ₹75 crore each.
It had filed its draft red herring prospectus (DRHP) in August with SEBI to seek the regulator's nod to float IPO.
Without disclosing the reason, the company said its "DRHP (was) withdrawn on October 5, 2024".
Going by the draft papers, proceeds from the fresh issue was proposed to be used for debt payment and purchase of equipment required for expansion in the 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 to automotive OEMs in the United States, Europe, India, and the ASEAN region.
The company's product range includes both electric and non-electric powertrains for various vehicle categories, including two-wheelers, e-bikes, off-road vehicles, electric as well as hybrid cars and heavy-duty vehicles.
Hero Motors operates in two segments -- powertrain solutions, and alloys and metallics -- and has six manufacturing facilities across India, the UK, and Thailand.