Hero Motors, a leading automotive technology company, has decided to withdraw its plans for an initial public offering (IPO) worth Rs 900 crore. The company had filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) in August but recently announced the withdrawal of the IPO.
The company had intended to raise Rs 500 crore through a fresh issuance of equity shares and an additional Rs 400 crore through an offer for sale (OFS) of existing shares by promoters. O P Munjal Holdings, Bhagyoday Investments, and Hero Cycles were among the promoters who planned to sell their shares.
While the exact reasons for the withdrawal of the IPO remain undisclosed, the company’s draft papers had indicated that the proceeds from the fresh issue would be used for debt repayment and capacity expansion at its facility in Gautam Buddha Nagar, Uttar Pradesh.
Hero Motors is a prominent player in the Indian automotive industry, specializing in designing, developing, and manufacturing high-quality powertrain solutions for various vehicle types, including two-wheelers, e-bikes, off-road vehicles, electric and hybrid cars, and heavy-duty vehicles. The company’s product range encompasses both electric and non-electric powertrains, catering to the diverse needs of automotive OEMs in India, the United States, Europe, and the ASEAN region.
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