Athira Sethu
Kochi, 1 July 2025
Hero Motors, a reputable Indian auto parts manufacturer, is likely to mobilize up to ₹1,200 crore (about \$140 million) by offering its shares to the public for the first time. The process is known as an Initial Public Offering or IPO. The company has submitted its formal documents (referred to as draft papers) to initiate the process.
Of the entire ₹1,200 crore Hero Motors will raise ₹800 crore through issuing fresh shares. This fund shall directly go to the firm. Henceforth, the rest of ₹400 crore will be from present shareholders who will offer a portion of their stocks to the public.
Hero Motors belongs to the renowned Munjal family venture. The same family operates Hero MotoCorp, the largest manufacturer of two-wheelers such as motorcycles and scooters in India. Pankaj Munjal heads the company and provides auto parts to large international brands like BMW and Ducati.
Hero Motors indicates it will employ the proceeds of the IPO primarily for two purposes. First, it intends to pay off some of its current debt. Second, it intends to invest in new equipment to increase the size of its factory in the state of Uttar Pradesh.
During the previous financial year (March 2024), the profit of the company fell by 67%. This was largely due to its expenses rising even as its revenue (revenue from sales) rose by nearly 1%.
Three prominent financial institutions, ICICI Securities, JM Financial, and DAM Capital, are assisting Hero Motors in handling the IPO process. They will be acting as the lead managers to assist in selling the shares and bringing in investors.
An IPO is a large step for a firm. It enables the public to purchase shares and become partial owners. For Hero Motors, this is also a means of expanding its business, paying off some loans, and constructing better facilities.
Currently, ₹1 is approximately equal to \$0.012 (or \$1 = ₹85.66).
Hero Motors is looking to this IPO to solidify its share in the expanding auto parts market, in India and internationally.
