Mumbai: Hero Motors Ltd on Thursday fixed the price band for its maiden initial public offering (IPO) at Rs 79-84 per equity share and said the public issue will open for subscription on September 16.
The IPO will remain open until September 18, with investors required to bid for a minimum of 178 equity shares and in multiples thereof, the company said.
The public offer comprises a fresh issue of equity shares worth up to Rs 600 crore and an offer-for-sale (OFS) of shares worth up to Rs 400 crore by promoters O P Munjal Holdings and Hero Cycles Ltd.
Of the proceeds from the fresh issue, Rs 190 crore will be utilised towards repayment, prepayment or redemption, in full or part, of certain outstanding borrowings.
Another Rs 200 crore will be used for capital expenditure, including the purchase of equipment required for capacity expansion at the company’s facility in Gautam Buddha Nagar, Uttar Pradesh.
The company also proposes to use a portion of the proceeds for funding inorganic growth through unidentified acquisitions and other strategic initiatives, besides general corporate purposes.
Hero Motors is an automotive technology company engaged in designing, developing, manufacturing and supplying engineered powertrain solutions to automotive original equipment manufacturers (OEMs) across the US, Europe, India and the ASEAN region, according to a CRISIL report cited by the company.
The company provides integrated powertrain solutions covering design, prototyping, validation, development and delivery of system-level and component-level solutions for both electric and non-electric powertrains.
Its products are used across two-wheelers, performance automobiles, e-bikes, off-road vehicles, electric and hybrid cars, heavy-duty vehicles and electric vertical take-off and landing (eVTOL) applications.
The company counts global customers such as BMW AG, Ducati Motor Holding S.P.A., Enviolo International Inc, Formula Motorsport Ltd, Hummingbird EV Inc and HWA AG among its clientele, besides leading global e-bike manufacturers and customers in other mobility applications, including aerospace.
Hero Motors said it is among the few companies catering to the premium and performance internal combustion engine (ICE) segment, which requires high-performance transmission systems capable of handling high torque while maintaining low component weight.
The company has invested in in-house design and engineering capabilities and has also entered into technology partnerships with global players to strengthen its product and service offerings.
It is recognised for its capabilities in continuously variable transmissions (CVTs), EV transmissions, electric motors, integrated drive units and gear sets.
ICICI Securities Ltd, DAM Capital Advisors Ltd and JM Financial Ltd are the book-running lead managers to the issue, while KFin Technologies Ltd is the registrar.
The IPO is being made through the book-building process in accordance with SEBI ICDR Regulations. Not more than 50 per cent of the net offer will be available for allocation to qualified institutional buyers, while not less than 15 per cent will be reserved for non-institutional bidders and not less than 35 per cent for retail individual bidders.
