Hero Motors, one of the major corporate groups in India, is set to make a significant entry into the stock market. The company, which makes auto components, is planning an IPO worth ₹900 crore. The draft for this IPO has already been submitted to the market regulator SEBI.

Details of the IPO

On August 23, Hero Motors submitted the IPO draft to SEBI. According to the draft, the IPO will include a fresh issue of shares worth ₹500 crore and an offer for sale (OFS) worth ₹400 crore. The OFS allows the company’s promoters to sell some of their shares and reduce their stake in the company.

Promoters and Investors Selling Shares

Hero Motors is backed by South Asia Growth Invest. The promoters, OP Munjal Holdings, plan to raise ₹250 crore by selling their shares. Additionally, Bhagodya Investments and Hero Cycles will sell shares worth ₹75 crore each in the OFS.

Current Stakeholders

Currently, OP Munjal Holdings holds the largest stake of 71.55% in Hero Motors. Bhagodya Investments has a 6.28% stake, and Hero Cycles holds 2.03%. South Asia Growth Invest LLC has a 12.27% stake in the company.

Clients and Manufacturing

Hero Motors manufactures both electric and non-electric powertrains. Its clients include major names like BMW, Ducati, Envoylo International, Formula Motorsport, Hummingbird EV, and HWA. The company is unique in India for manufacturing CVTs for global e-bike companies. Hero Motors has six manufacturing facilities in India, the UK, and Thailand.

IPO Buzz in the Indian Market

The Hero Motors IPO comes at a time when the Indian stock market is buzzing with IPOs. There has been a record number of IPOs recently, with notable activity in the auto sector. After a long gap, Ola Electric recently launched the first IPO in the auto sector, which received a positive response. Hyundai, the South Korean car company, is also preparing to launch an IPO for its Indian unit.