Hero Motors Limited

Hero Motors Limited (NEW IPO): GMP, Price, Review, Profit

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Hero Motors Limited is an auto-components manufacturer that designs, develops and supplies advanced powertrain solutions for global OEMs. The company’s products are used in vehicles such as two-wheelers, e-bikes, high-performance cars, off-road vehicles and electric or hybrid vehicles across markets like the US, Europe, India and ASEAN.

It provides powertrain solutions (gears, transmissions, and EV powertrain systems) and alloy & metallic components for automotive OEMs.

Hero Motors operates 6 manufacturing facilities across India, the United Kingdom, and Thailand with 2 R&D centres supporting its operations. The company serves automotive customers in more than 21 countries, supplying components to global brands like BMW and Ducati.

Hero Motors Limited was incorporated in 1998 & currently Mr. Amit Gupta serves as the Managing Director & Chief Executive Officer of the company.

Hero Motors Limited has filed its DRHP with SEBI for a proposed IPO featuring a Fresh Issue of ₹ 800 Crore and no Offer for Sale (OFS) of ₹ 400 Crore.

Subscription date to apply for the IPO is yet to be announced. Price band for the IPO is also pending to be declared.

Check DRHP
Check IPO Allotment
Visit Official Website
Issue Size:₹ 1,200 Cr
Fresh Issue:₹ 800 Cr
Offer for Sale:₹ 400 Cr
Price Range:TBA
Lot Size:TBA
GMPPending

Hero Motors Limited important data points

Revenue, PAT, EBITDA

YearFiscal 2024
Networth₹ 385.44 Cr
Revenue:₹ 1064.38 Cr
EBITDA₹ 82.80 Cr
PAT₹ 17.03 Cr
EBITDA Margin:~ 7.78%
PAT Margin~ 1.60%
Face Value:₹ 10

IPO important dates

Open Date:TBA
Close Date:TBA
Anchor Investor BiddingTBA
Allotment Date:TBA
Refunds & Demat CreditTBA
Tentative Listing Date:TBA

Use of Proceeds

PurposeAmount
Capacity Expansion₹ 237 Cr
Working Capital Requirement₹ 00 Cr
Borrowing prepayment/repayment₹ 285 Cr
General Corporate PurposeBalance

Hero Motors Limited Financial Data

202220232024
Revenue (₹ Cr)₹ 914.2₹ 1,054.6₹ 1,064.4
PAT (₹ Cr)₹ 99.0₹ 40.5₹ 17.0
Asset (₹ Cr)₹ 703.1₹ 992.0₹ 1,059.9
Net Worth (₹ Cr)₹ 159.1₹ 344.5₹ 385.4

Hero Motors Limited IPO Grey Market Premium

DateIPO PriceIPO GMPProfit per lot
20-May₹ –₹ –₹ –
19-May₹ –₹ –₹ –
18-May₹ –₹ –₹ –
17-May₹ –₹ –₹ –
16-May₹ –₹ –₹ –
Hero Motors Limited

Hero Motors Limited Pro’s and Con’s

Strengths:

  • Part of the well-known Hero Group, which has strong brand reputation in the automotive sector.
  • Strong global client base including premium automotive OEMs in Europe and the US.
  • Growing demand for EV and powertrain components supports long-term business growth.
  • Presence in multiple countries with advanced manufacturing and R&D capabilities.
  • Funds from the IPO will be used for debt reduction and expansion, which may strengthen the balance sheet.

Risks:

  • Highly dependent on the cyclical automotive industry, which can affect revenues.
  • Large revenue concentration from a few key customers.
  • Faces strong competition from other global auto-component manufacturers.
  • Business performance is affected by raw material price fluctuations.
  • Declining profits in the past few years.

Hero Motors Limited Promoters – Pre offer equity (Approx)

Promoters%Shares
O P Munjal Holdings~ 71.09 %
Pankaj Munjal~ 2.45 %
Charu Munjal~ 0.25 %
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Hero Motors Limited Lot Size details

Application TypeLot SizeNo. of LotNo. of SharesInvestment Amount
Retail (Min)–1–₹ –
Retail (Max)–13–₹ –
HNI (Min)–14–₹ –
HNI (Max)–66–₹ –
Big HNI (Min)–67–₹ –

Lead Managers / Registrars of Hero Motors Limited

Lead / Book Running Lead ManagersICICI Securities Limited,
DAM Capital Advisors Limited,
JM Financial Limited,
Registrar (RTA)KFin Technologies Limited

Hero Motors Limited FAQ’s

  • It designs and manufactures high-precision powertrain components and transmission systems for automotive OEMs, supplying global brands across Europe, the US, India and ASEAN markets.
  • Hero Motors is raising funds via IPO for debt repayment, capacity expansion at its Uttar Pradesh plant, strategic acquisitions, and general corporate purposes to support future growth.
  • The issue size of the IPO comprises of ₹1,200 Crore, including ₹ 800 Crore as Fresh Issue and ₹400 crore OFS. It will be listed on BSE and NSE platform.
  • Key risks include from automotive industry cyclicality, dependence on key OEM customers, global supply chain disruptions, and fluctuations in raw-material prices affecting profitability.
  • Upsides include strong Hero Group backing, global premium OEM clients, rising demand for EV powertrain components, and expansion plans could drive long-term growth and investor value.
  • Investors can apply for the IPO through ASBA via net banking or using UPI through registered stock brokers once the IPO opens for subscription.

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