Hero Motors refiles draft papers for ₹1,200 crore IPO

Hero Motors Refiles ₹1,200 Crore IPO Plan to Fund Expansion.

Expert Analysis :

• IPO Refiling and Size: Hero Motors has refiled its DRHP with SEBI to raise ₹1,200 crore through an IPO.

• Powertrain Expertise and Market Position: Hero Motors offers end-to-end powertrain solutions for electric and non-electric vehicles and holds a first-mover advantage in the global e-bike powertrain market.

• Global Manufacturing Footprint: As of December 31, 2024, Hero Motors operated six manufacturing facilities across India, the United Kingdom, and Thailand, strategically located for customer proximity and cost-efficiency.

• Operational Revenue Growth: Hero Motors’ revenue increased from ₹914.19 crore in FY22 to ₹1,064.39 crore in FY24, with ₹807.26 crore in 9M FY24.

• Gross Profit Performance: Gross profit increased from ₹281.38 crore in FY22 to ₹419.37 crore in FY24, reflecting a CAGR of 22.08%, and stood at ₹330.47 crore in 9MFY24.

• Profit After Tax (PAT) Growth: Profit after tax was ₹17.04 crore in FY24 and rose to ₹22.39 crore in the nine months ended December 31, 2024.

• IPO Structure and Promoter Offer for Sale: The IPO has a face value of ₹10 and includes a fresh issue of ₹800 crore and an OFS of ₹400 crore—₹390 crore from O P Munjal Holdings and ₹5 crore each from Bhagyoday Investments and Hero Cycles.

• Utilization of IPO Proceeds:₹285 crore will be used for debt repayment, ₹237 crore for capacity expansion at the Gautam Buddha Nagar facility, with remaining funds allocated to acquisitions, strategic initiatives, and general corporate purposes.