Mon Oct 07 12:34:13 UTC 2024: ## Hero Motors Pulls Back from ₹900 Crore IPO

**New Delhi, October 7, 2024:** Hero Motors, the auto-components firm associated with the Hero MotoCorp group, has withdrawn its draft red herring prospectus (DRHP) for an initial public offering (IPO), according to a recent update from the Securities and Exchange Board of India (SEBI).

The proposed IPO was anticipated to raise ₹900 crore, comprising ₹500 crore from a fresh equity issue and ₹400 crore from an offer-for-sale (OFS) by promoters. The OFS included shares from OP Munjal Holdings, Bhagyoday Investments, and Hero Cycles.

While the company did not disclose the reason for withdrawing the DRHP, the IPO was expected to be a key funding strategy for Hero Motors. The proceeds from the fresh issue were slated for debt repayment and purchasing equipment for expanding production at their Gautam Buddha Nagar facility.

Hero Motors, a leading automotive technology player, specializes in designing, developing, and manufacturing powertrain solutions for various vehicle segments. Their product range includes both electric and non-electric powertrains, catering to two-wheelers, e-bikes, off-road vehicles, electric and hybrid cars, and heavy-duty vehicles. The company boasts six manufacturing facilities across India, the United Kingdom, and Thailand, and reported revenues of ₹1,064.4 crore in fiscal 2024.

The decision to withdraw the IPO comes amidst a robust year for the Indian primary market. Several companies are poised to launch their public issues, with the total value expected to exceed ₹50,000 crore around Diwali. The upcoming IPO of carmaker Hyundai Motor India, valued at over ₹25,000 crore, is considered the potential largest-ever IPO in the country.

While Hero Motors’ withdrawal from the IPO market for now may raise eyebrows, it remains to be seen if the company will revisit their IPO plans in the future.

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