Hero Motors Ltd has fixed the price band for its maiden initial public offering (IPO) at ₹79-84 per equity share of face value ₹10. The issue will open for subscription on September 16 and close on September 18.
Investors can bid for a minimum of 178 equity shares and in multiples of 178 shares thereafter. The IPO comprises a fresh issue of equity shares worth up to ₹600 crore and an offer-for-sale (OFS) of up to ₹400 crore by promoters O.P. Munjal Holdings and Hero Cycles Ltd.
Fresh issue to fund expansion
Of the fresh issue proceeds, ₹190 crore will be used for repayment, prepayment or redemption, in full or part, of certain outstanding borrowings.
Another ₹200 crore will be used to purchase equipment for capacity expansion at Gautam Buddha Nagar. The remaining proceeds will support inorganic growth through unidentified acquisitions, other strategic initiatives and general corporate purposes.
Focus on powertrain solutions
Hero Motors is a technology and innovation-driven company with investments in in-house design and engineering capabilities. It has also entered into technology partnerships with global players to strengthen its expertise and product and service offerings.
The company is a fully integrated powertrain systems provider offering solutions for designing, prototyping, validating, developing and delivering system-level and component-level powertrain systems for electric and non-electric applications.
Diverse automotive applications
Its products and solutions cater to two-wheelers, performance automobiles, e-bikes, off-road vehicles, electric and hybrid cars, heavy-duty vehicles and electric vertical take-off and landing (eVTOL) applications.
Hero Motors is also among the companies addressing the premium and performance internal combustion engine (ICE) segments. These applications require high-performance transmission systems capable of handling high torque while maintaining lightweight components.