Hero Motors which is the main auto-components company of the Hero Motors Company (HMC) Group has submitted a draft red herring prospectus with SEBI.
The company is all set to launch its first IPO soon and plans to raise Rs 900 crore from public subscription.
On August 23, the DRHP reported that the Hero Motors IPO consists of a fresh issue of equity shares worth Rs 500 crore and an offer-for-sale (OFS) worth Rs 400 crore by promoters.
Among the promoters, O P Munjal Holdings will sell 250 crore rupees worth of shares in the OFS and other promoters such as Bhagyoday Investments, and Hero Cycles will sell shares worth Rs 75 crore in the OFS.
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The company may also launch a pre-IPO investment of Rs 100 crore before filing the Red Herring Prospectus with the Registrar of Companies (ROC).
If the pre-allotment placement succeeds then the amount will be used for general corporate reasons.
O P Munjal Holdings held a 71.55% stake in the company and Bhagyoday Investments, and Hero Cycles held 6.28% and 2.03% respectively.
South Asia Growth Invest LLC owns a 12.27% stake in the company.
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