Hero Motors, the auto parts manufacturer of the Hero Group, has decided to withdraw its planned initial public offering (IPO) aimed at raising ₹900 crore. The company informed the Securities and Exchange Board of India (SEBI) that it is retracting its IPO documents, though it has not disclosed the reasons behind this decision.
Earlier, in documents submitted to SEBI in August, Hero Motors outlined plans to issue new shares worth ₹500 crore as part of the public offering. Additionally, ₹400 crore of equity shares were to be offered for sale by the promoters, with OP Munjal planning to sell shares valued at ₹250 crore, while other promoters Bhagyodai and Hero Cycles aimed to sell shares worth ₹75 crore.
OP Munjal, who is also the Chairman of Hero MotoCorp, holds a 71.55% stake in Hero Motors, while Hero Cycles owns a 2.03% share. The company specializes in manufacturing components for two-wheeler engines, vehicle transmissions, e-bikes, off-road vehicles, and electric and hybrid vehicles, serving international clients such as BMW AG and Ducati Motor.
The withdrawal of the IPO raises questions about the company’s future plans and strategy moving forward.
