Hero Motors Sets ₹79-84 Price Band for ₹1,000 Crore IPO Debut

Auto components maker Hero Motors has fixed a price band of ₹79-84 per equity share for its ₹1,000 crore initial public offering. The IPO will open for subscription on September 16 and close on September 18, with the company expected to debut on stock markets on September 23.

The ₹1,000 crore public offer comprises a fresh issue of ₹600 crore and an offer for sale of ₹400 crore by existing promoters. O P Munjal Holdings will sell shares worth ₹395 crore, while Hero Cycles Ltd will offload ₹5 crore worth of shares.

Proceeds from the fresh issue will fund debt repayment of ₹190 crore, equipment purchases for capacity expansion at its Gautam Buddha Nagar facility in Uttar Pradesh worth ₹200 crore, and the balance towards acquisitions and corporate needs. Hero Motors designs and manufactures powertrain solutions for global automotive manufacturers including BMW, Ducati, and Formula Motorsport.