Hero Motors a prominent player in Automobile Technology, has submitted draft papers to the Securities and Exchange Board of India (SEBI) for its highly anticipated IPO worth ₹900 crores. This public offering aims to raise approximately ₹900 crores through a combination of a fresh issue and an offer for sale. The IPO is expected to include a fresh issue of ₹500 crores and an offer for sale (OFS) of up to [.] equity shares. The company plans to list its shares on both NSE and BSE.
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Hero Motors IPO Details
- IPO Date: Not yet announced.
- Issue Type: Book-built issue.
- IPO Size: Approx. ₹900 crores
- Fresh Issue: ₹500 crores
- Offer for Sale: Up to [.] equity shares
- Face Value: ₹10 per share
- Listing: NSE, BSE
- Retail Quota: 35%
- QIB Quota: 50%
- HNI Quota: 15%
About the IPO
Hero Motors, a leading Automobile Technology, has submitted its draft papers with SEBI for an IPO worth ₹900 crores. The IPO will consist of a fresh issue of ₹500 crores and an offer for sale of up to ₹[.] crores. The promoter and promoter group entities involved in the OFS include O P Munjal Holdings, Hero Cycles Limited, and Bhagyoday Investments Private Limited, who will be selling shares worth ₹250 crores, ₹75 crores, and ₹75 crores, respectively.
The company has also planned a pre-IPO placement of up to ₹100 crores. If this is successful, the fresh issue component will be reduced accordingly. The funds raised will be used for working capital, corporate purposes, expansion of its Gautam Buddha Nagar, Uttar Pradesh facility, and repayment of certain loans.
Financial Performance
For the financial year ending March 2024, Hero Motors reported revenue of ₹1064.4 crores, reflecting a 0.9% increase from the previous year. However, EBITDA declined by 23.7% to ₹63.8 crores, with margins narrowing by 190 basis points. The company’s net profit for FY2024 was ₹17 crores, a drop of 58% compared to FY2023.
Company Overview
Hero Motors is a key player in the Automobile Technology Company that Develops, Designs, Manufactures, and supplies Highly engineered powertrain solutions for OEMs in Europe, USA, India, and the ASEAN region.
IPO Documents
| Document | Link |
|---|---|
| DRHP Draft Document | Click Here |
| RHP Draft Document | Will Be Updated Shortly |
Financial Report
| Fiscal Year | Revenue | Expense | Profit After Tax |
|---|---|---|---|
| 2022 | ₹921.15 | ₹849.25 | ₹99.02 |
| 2023 | ₹1070.99 | ₹1016.24 | ₹40.51 |
| 2024 | ₹1083.42 | ₹1059.11 | ₹17.04 |
IPO Valuation FY-2024
| Earning Per Share (EPS): | ₹0.36 (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 4.42% |
| Net Asset Value (NAV): | ₹10.29 |
Peer Group Comparison
| Company | EPS | PE Ratio | RoNW % | NAV | Income |
|---|---|---|---|---|---|
| UNO Minda Limited | 15.36 | 75.28 | 17.56% | 91.71 | 1,40,30.89 Cr. |
| Endurance Technologies Limited | 48.38 | 51.81 | 13.67% | 353.86 | 1,02,40.80 Cr. |
| CIE Automotive India Limited | 29.66 | 17.92 | 18.79% | 157.84 | 9,280.35 Cr. |
| Varroc Engineering Limited | 34.43 | 15.44 | 34.86% | 99.89 | 7,551.94 Cr. |
| Sona BLW Precision Forgings Ltd | 8.83 | 77.76 | 18.49% | 47.75 | 3,184.77 Cr. |
Objects of the Issue
- Repayment/prepayment of certain outstanding borrowings.
- Capital expenditure for expansion.
- Funding working capital requirements.
- General corporate purposes.
IPO Lead Managers
- ICICI Securities Limited
- DAM Capital Advisors Limited
- JM Financial Limited
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