Hero Motors has withdrawn its draft red herring prospectus (DRHP) with market regulator Sebi. The automobile component maker pulled out draft initial public offering (IPO) paper on October 5, 2024, as per Sebi’s processing status.
Read More: Vodafone Idea Down Over 6% After DoT Issues Notice For Non-Submission Of Bank Guarantees
Hero Motors had filed preliminary IPO documents with the Securities and Exchange Board of India (Sebi) for a Rs 900 crore IPO earlier in August 2024.
The initial share sale included a fresh issue of up to Rs 500 crore while the remaining Rs 400 crore is an offer for sale (OFS) by promoters OP Munjal Holdings, Bhagyoday Investments and Hero Cycles.
Read More: ITC Shares Rise 2% After NCLT Clears Plan To Demerge Hotels Business; Key Points
The company is owned by Pankaj Munjal, a first cousin of Hero MotoCorp Ltd’s chairman Pawan Munjal. It provides powertrain solutions, for both electric and non-electric powertrains, to automotive original equipment manufacturers (OEMs).
Read More: Garuda Construction IPO opens tomorrow. Price band, GMP among 10 things to know before subscribing
The firm’s revenue climbed from Rs 914 crore in financial year 2021-22 (FY22) to Rs 1,064 crore in FY24. Its gross profit jumped from Rs 281 crore in FY22 to Rs 419 crore in FY24 at a CAGR (compounded annual growth rate) of 22 per cent. Its gross margin grew from 30.78 per cent in FY22 to 39.40 per cent in FY24.
Last checked, promoters held a 91.65 per cent stake in the company.
