Hero Motors Withdraws INR 900 Crore IPO Plans

The company's operational earnings increased from INR 914.2 crore in FY22 to INR 1,064.4 crore in FY24, indicating a considerable increase in sales

Hero Motors, the auto component manufacturer, has withdrawn its Draft Red Herring Prospectus (DRHP) for a proposed Initial Public Offering (IPO) worth INR 900 crore. On October 5, the withdrawal was formally announced on the Securities and Exchange Board of India (SEBI) website. The DRHP was first submitted by the firm in August 2024.

The planned IPO was set to include a fresh issue of up to INR 500 crore, while the remaining INR 400 crore was designated as an offer for sale (OFS) by promoters, including OP Munjal Holdings, Bhagyoday Investments, and Hero Cycles. The promoters currently hold a 91.65% ownership position in the business. Hero Motors is a global manufacturer of engine and transmission parts for two-wheelers, with a clientele that includes well-known brands such as BMW, Ducati, and Harley Davidson. Powertrain solutions accounted for 49% of the company's revenues, with the alloys and metallics (A&M) business sectors contributing the remaining 51%, as reported in the FY24 report.

The company's operational earnings increased from INR 914.2 crore in FY22 to INR 1,064.4 crore in FY24, indicating a considerable increase in sales. The company's net profit rose from INR 281.4 crore to INR 419.4 crore within the same period, attaining a compound annual growth rate (CAGR) of 22%. The gross margin also improved from 30.78% to 39.40%.