Mumbai– Hero Motors Limited (HML) on Thursday filed a fresh draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), revealing a continued slide in profitability ahead of its upcoming initial public offering.
According to the updated filing, HML’s profit dropped by nearly 60 percent in the financial year ending March 31, 2024, falling to ₹17.03 crore from ₹40.50 crore in FY23.
The company now seeks to raise ₹1,200 crore through the IPO, up from ₹900 crore in its earlier application. Equity shares will be issued at a face value of ₹10 each.
Hero Motors had originally filed for the IPO in August last year but later withdrew the application. In the latest update, the company reported a profit of ₹22.39 crore for the nine months ending December 2024 (FY25 YTD).
Net revenue — which includes both operating income and other income — saw a slight increase in FY24, rising to ₹1,083.41 crore compared to ₹1,069.9 crore in FY23. For the nine months of FY25, net revenue stood at ₹823.8 crore.
The public offering will consist of a mix of new equity shares and an offer for sale (OFS). The company will issue fresh shares worth ₹800 crore, while promoters will offload shares worth ₹400 crore.
Promoters and entities participating in the OFS include OP Munjak Holdings, Bhagyoday Investment, and Hero Cycles.
Hero Motors plans to list its shares on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
ICICI Securities, DAM Capital Advisors, and JM Financial are acting as the book-running lead managers for the IPO, with KFin Technologies serving as the registrar.
The company was originally incorporated as ‘Hero Briggs and Stratton Auto Private Limited’ under the Companies Act, 1956, on April 30, 1998. It later became a deemed public company and was renamed ‘Hero Briggs & Stratton Auto Limited’ on August 25, 1998. (Source: IANS)
