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HERO MOTORS IPO

IPO Details

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₹ 1200

Subscription Status

Shareholder -
Qualified Institutional Buyers -
Non-Institutional Investor -
Retail Individual Investor -
Employee -
Total -

About Company

Hero Motors Limited operates in the automotive component and mobility solutions sector. The company's business is organized into two primary segments: Powertrain Solutions and Alloys and Metallics (A&M). The Powertrain segment focuses on integrated systems like engines, transmission assemblies, and e-drive systems for global OEMs, including BMW, Ducati, Harley-Davidson, and Enviolo. The A&M segment provides sheet metal and tubular assemblies. As of December 31, 2024, the company operated six manufacturing facilities across India, the United Kingdom, and Thailand. In 2021, it established a joint venture with Yamaha Motors Japan to manufacture electric motors under the ‘HYM’ brand.

Issue Structure as per DRHP

  • Issue Size: ₹1,200 crore
  • Fresh Issue: ₹800 crore
  • Offer for Sale (OFS): ₹400 crore
  • Price Band: To be announced
  • IPO Dates: To be announced
  • Minimum Investment: To be announced
1998

Objectives

Repayment or pre-payment of certain outstanding borrowings – ₹285 crore
Purchasing equipment to expand capacity at the Gautam Buddha Nagar, Uttar Pradesh facility – ₹237 crore
Balance for funding inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes

Strengths & Risks

Strengths (4)

Global Manufacturing Presence: Operational facilities located across India, the UK, and Thailand.

Risks (4)

Customer Concentration: The top five customers contributed approximately 65% of revenue in FY24.

Financials

Industry Overview

  • Global Market Expansion: The automotive powertrain market is undergoing a transition driven by the global shift toward electric mobility, with increasing demand for integrated e-drive systems and micro-mobility solutions like e-bikes.
  • Indian Market Positioning: India is a key manufacturing hub for automotive components, supported by rising localization trends, government incentives (PLI schemes), and increasing outsourcing by global Original Equipment Manufacturers (OEMs).
  • Sector Growth Drivers: Industry growth is primarily fueled by the premiumization of vehicles, the adoption of lightweight engineering materials, and the expansion of the electric vehicle (EV) ecosystem across passenger and commercial segments.

Comparison with Listed Industry Peers for FY24 as per DRHP

 
Name of Company

EPS(₹)

P/E Ratio (x) 

Return on Net Worth (%)

Hero Motors Limited
0.36 NA 4.42
CIE Automotive India Limited
21.03 21.14 15.82
Endurance Technologies Limited
48.38 54.37 14.41
Sona BLW Precision Forgings Limited
8.83 54.44 20.24
Uno Minda Limited
15.36 70.44 19.58
Barroc Engineering Limited
34.43 16.20 57.82

Hero Motors IPO FAQs

When does the Hero Motors IPO open for subscription?

The Bid/Offer Opening date of the Hero Motors IPO is to be announced.

The price band for the Hero Motors IPO is to be announced.

The Hero Motors IPO is estimated of comprising- a fresh issue of up to ₹800 crore and an offer for sale of up to ₹400 crore, as stated in DRHP.

The lot size of the Hero Motors IPO is to be announced.

Hero Motors IPO is proposed to list on both the BSE and NSE.

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*The financials mentioned above are sourced from DRHP/ RHP documents.