According to Reuters, a draft prospectus on July 1, Hero Motors, a well-known auto parts supplier in India, has officially submitted an IPO application to raise up to INR 12 billion (about US$140.1 million) through the issuance of new shares. The IPO will consist of two parts: the company plans to issue new shares worth INR 8 billion, while existing shareholders will sell shares worth up to INR 4 billion.
Image credit: Hero Motors
According to Hero Motors, the funds raised from the IPO will be mainly used for two strategic directions: one is to optimize the company’s debt structure and reduce financial risks; The second is to provide financial support for the purchase of new equipment to expand its production facilities in Uttar Pradesh, India.
It is worth noting that in the performance report for fiscal year ending fiscal year 2024, although Hero Motors’ revenue achieved a slight increase of nearly 1%, its net profit fell sharply by 67% year-on-year due to a sharp increase in operating costs.
To ensure the smooth progress of this IPO, Hero Motors has engaged three well-known financial institutions, ICICI Securities, JM Financial and DAM Capital, as lead underwriters for the offering.
Hero Motors provides end-to-end solutions for motorcycle, automobile, off-road and electric vehicle brands including gear drivetrains, alloy and metal components, motorcycle powertrain systems, and more. Up to now, Hero Motors has more than a thousand employees and 2 R&D centers.
In addition, Hero Motors has established three manufacturing facilities in India and Thailand, and is taking advantage of the unique advantages of these regions for production operations. Founded in 2008, Hero Motors’ gear and drivetrain division in India manufactures internal combustion engine and electric vehicle drivetrains and components for high-end automotive applications for global OEMs.
As a long-standing partner of internationally renowned car brands such as BMW and Ducati, Hero Motors has a strong reputation in the automotive industry. It is reported that Pankaj Munjal, the current chairman of Hero Motors, comes from India’s influential Munjal family, which runs Hero MotoCorp, India’s largest two-wheeler manufacturer. In addition, Hero MotoCorp and American motorcycle manufacturer Harley-Davidson recently announced the price of the 2025 Harley-Davidson motorcycle in India. Pre-orders are currently open at Harley-Davidson dealerships across India.
