Hero Motors IPO: DRHP Refiled, Issue Size Increased to ₹1200 Cr
Hero motors,a leading Indian EV component manufacturer,is making strides in the market.The company has refiled its DRHP for an IPO, now seeking ₹1,200 crore, a clear signal of strengthening its position in the rapidly growing electric vehicle IPO sector. This financial move includes a fresh equity issue alongside an offer for sale, designed to fuel expansion in EV component manufacturing and alleviate debt. The proceeds will also support its EV powertrain facility. Hero Motors, recognized for its powertrain solutions for electric and hybrid vehicles, is strategically positioned for global expansion. The IPO underscores investor confidence in the electrification trend. Discover more insights with News Directory 3, and stay updated on the latest developments. Could this IPO redefine the future?
Hero Motors Eyes ₹1,200 Crore IPO Amid EV Expansion
Updated July 1, 2025
Hero Motors, an Indian auto component manufacturer specializing in electric vehicle (EV) powertrain solutions, is again pursuing an initial public offering (IPO). Teh company, part of the Hero Group and led by Pankaj Munjal, refiled its Draft Red Herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an IPO valued at ₹1,200 crore.
The company had initially sought a ₹900 crore IPO in 2023. The increased issue size is intended to bolster debt reduction and expand its EV components manufacturing capacity. This move highlights the growing investor interest in the electric vehicle market and its supply chain.
the Hero Motors IPO will feature a fresh equity issue of ₹800 crore, alongside an offer for sale (OFS) of shares worth ₹400 crore from existing shareholders.The proceeds from the fresh issue will primarily fund the expansion of Hero Motors’ EV powertrain facility in Uttar Pradesh and help repay debt.
ICICI Securities, JM Financial, and DAM Capital are managing the offering as book running lead managers.
Hero motors designs and manufactures both electric and conventional powertrain systems for original equipment manufacturers (OEMs) in india,Europe,the U.S., and ASEAN markets. Its product range includes powertrains for e-bikes,two-wheelers,hybrid vehicles,off-road vehicles,and commercial electric vehicles.
The company’s financial performance in fiscal year 2024 showed a 67% year-on-year decline in net profit due to increased expenses. Though, revenue saw a slight increase of about 1%, reflecting margin pressures despite its position in the EV supply chain.
Hero Motors operates in two business segments: powertrain solutions and alloys & metallics. It has six manufacturing units across India, the U.K., and Thailand. The company intends to use the IPO proceeds to strengthen its balance sheet and capitalize on the expanding electric mobility market, solidifying its position in the electric vehicle IPO landscape and EV component manufacturing.
What’s next
With the refiled DRHP, Hero Motors is poised to tap into capital markets, aiming to leverage its manufacturing presence and expand its reach in the global EV market. The Hero Motors IPO could provide a important boost to its growth plans.