Hero Motors Refiles DRHP for Rs 1,200 Cr IPO with SEBI: Check Issue Size, Offer for Sale Details & Face Value

Prominent automobile company, Hero Motors backed by South Asia Growth Invest, has refiled its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to launch an initial public offering (IPO) worth Rs 1,200 crore. The company, which provides end-to-end powertrain solutions, plans to utilise this IPO to fund future growth and strengthen its market presence in both electric and non-electric mobility solutions.

Hero Motors IPO Updates: Shares Worth, Face Value and More

The IPO will consist of a fresh issue of shares worth up to Rs 800 crore, alongside an offer for sale (OFS) of up to Rs 400 crore by the company's promoters. The OFS includes the sale of shares worth Rs 390 crore by O P Munjal Holdings, and Rs 5 crore each by Bhagyoday Investments and Hero Cycles. The face value of each equity share is set at Rs 10.

The IPO will be managed by three prominent investment banking firms, ICICI Securities Limited, DAM Capital Advisors Limited, and JM Financial Limited, who will serve as the book-running lead managers. KFin Technologies Limited has been appointed as the registrar for the public issue, overseeing the application and allotment process.

Know About Hero Motors

Hero Motors is a key player in the automotive components sector, offering integrated solutions that include designing, prototyping, validating, developing, and delivering system-level powertrain technologies. These services cater to both electric and traditional internal combustion engine (ICE) powertrains, making the company a versatile contributor in the evolving mobility landscape.

As of 31 December 2024, Hero Motors operated six manufacturing facilities strategically located in India, the United Kingdom, and Thailand. These locations were chosen to optimise operational efficiency, reduce logistical costs, and maintain close proximity to major clients and partners.

Hero Motors Financial Performance

The Hero group company's gross profit increased significantly, growing from Rs 281.38 crore in FY22 to Rs 419.37 crore in FY24, reflecting a compound annual growth rate (CAGR) of 22.08%. In the same nine-month period ending December 2024, the company generated a gross profit of Rs 330.47 crore.

It has shown steady growth over recent years. Revenue from operations rose from Rs 914.19 crore in FY22 to Rs 1,064.39 crore in FY24. For the nine months ended 31 December 2024, Hero Motors reported revenue of Rs 807.26 crore. This indicates a strong upward trajectory and robust demand for its product and service offerings.

In terms of profitability, Hero Motors recorded a profit after tax (PAT) of Rs 17.04 crore in FY24, and Rs 22.39 crore in the first nine months of FY25. This marks a significant improvement and highlights the company's growing efficiency in managing its operations and expenses.