Hero Motors Ltd., a prominent manufacturer of auto components and advanced mobility solutions, is set to launch its Initial Public Offering (IPO) on Wednesday, September 16. The company has fixed the price band for its Rs 1,000 crore issue at Rs 79 to Rs 84 per equity share, each with a face value of Rs 10.
The IPO will remain open for subscription until Friday, September 18. This significant public offering consists of two main components: a fresh issue of equity shares valued at Rs 600 crore, and an Offer-for-Sale (OFS) amounting to Rs 400 crore.
Key Details for Investors
For retail investors, one lot will comprise 178 shares, requiring a minimum investment of Rs 14,952 at the upper end of the price band. Bids can be placed in multiples of 178 shares thereafter. The issue structure allocates 35 percent of the total offering for retail investors, 50 percent for Qualified Institutional Buyers (QIBs), and the remaining portion for non-institutional investors.
At the upper end of the price band, Hero Motors is projected to achieve a market capitalization of Rs 3,815 crore. Following the successful completion of the OFS, the promoter holding in the company is expected to decrease from 85.57 percent to 61.63 percent.
IPO Timeline and Management
The tentative schedule for the IPO includes the allotment of shares to eligible investors on September 21. Subsequently, shares will be credited to the demat accounts of successful applicants on September 22. Hero Motors shares are slated to make their official stock market debut on Wednesday, September 23.
The book-running lead managers for the IPO are ICICI Securities, DAM Capital, and JM Financial. Kfin Technologies has been appointed as the official registrar for the issue, overseeing the application and allotment process.
About Hero Motors Ltd.
Beyond its core auto components business, Hero Motors Ltd. is also known for producing high-end transmission systems, drive units, and engine components. The company boasts an impressive client roster that includes major international brands such as BMW and Ducati, alongside various other two-wheeler and electric bicycle manufacturers.