Hero Motors applied again for IPO
Hero Motors has once again taken a big step in the market. The company has submitted documents of the initial public issue to SEBI (Sebi Indian Securities and Exchange Board). This means that Hero Motors wants to raise about Rs 1,200 crore by selling its shares in the stock market. Hero Motors is not a small company. It is a well-known auto parts of India. This company is famous not only in the country, but also abroad for its high-tech powertrain (ie engine and technology related to transmission).
What is the complete plan of IPO?
According to the documents submitted with SEBI on Monday, the IPO of Hero Motors will be in two parts. In this, new shares worth Rs 800 crore will be issued, while shares worth Rs 400 crore will be sold through offers for sale (offs). That is, the company will raise fresh funds by issuing new shares and some existing shareholders will earn profits by selling their shares.
The company will use the funds collected from this IPO for many big tasks. The most emphasis in this is on increasing the growth and manufacturing capacity of the company. The company plans that one part of this fund will be put in the second part of increasing production and the rest will be imposed in new acquisition and strategic schemes.
Where will the fund be used?
Hero Motors has also revealed the use of its IPO funds. Out of a total of Rs 1,200 crore, the company will use Rs 285 crore to repay its debt. This will strengthen the company’s balance sheet and will improve financial health. Apart from this, Rs 237 crore will be spent for capacity expansion in the manufacturing unit of the company in Gautam Buddha Nagar, Uttar Pradesh. New equipment will be purchased from this fund, so that production can be further enhanced.
The company also stated that the remaining funds will be used for some unknown acquisitions and strategic initiatives. Also, the company will also invest to promote carbon-neutral growth. This means that Hero Motors is focusing on environmentally friendly technology and sustainable development.
IPO was also filed earlier
This is not the first time Hero Motors has tried to bring the IPO. Earlier in August 2024, the company filed IPO documents with SEBI to raise Rs 900 crore, but in October, the company suddenly withdrawn the plan. At that time, the company did not clear the reason behind this, but it was believed that this would have happened due to the market situation or change in the company’s strategy.