Hero Motors Withdraws Papers For Rs 900 Crore IPO
The IPO was a combination of fresh issues of shares at Rs 500 crore and an offer for sale or OFS at Rs 400 crore.
Source: company website
Hero Motors Ltd. withdrew its draft papers for its 900 crore initial public offering on Monday.
Earlier, Pankaj Munjal's Hero Motors filed preliminary papers with the Securities and Exchange Board of India to sell shares worth aggregate Rs 900 crore through an IPO. The IPO was a combination of fresh issues of shares at Rs 500 crore and an offer for sale or OFS at Rs 400 crore.
Pankaj Munjal and Bhagyoday Investments Pvt. Ltd.—promoter and promoter group, respectively—were supposed to offload their equity shares along with Hero Cycles Ltd. through the OFS mode.
The company was expected to use the net proceeds received from fresh issues towards the repayment of certain outstanding borrowings, purchasing equipment required for the expansion of their facility in Uttar Pradesh, and funding the working capital requirements.
ICICI Securities Ltd., DAM Capital Advisors Ltd. and JM Financial Ltd. were the leading bookrunners, and KFin Technologies Ltd. was the registrar for the offer.
Hero Motors is a manufacturer of automotive components and solutions, bringing the latest technology to all of their products. It is the automotive flagship company of the Hero Group that manufactures two-wheelers and bicycles.
Other IPO Status
Earlier, the Securities and Exchange Board of India approved the initial public offerings of Mamata Machinery Ltd., Acme Solar Holdings Ltd., and Vishal Mega Mart Ltd., but it returned those of Innovision Ltd.
SEBI also approved Hyundai Motor India Co.'s IPO, which is expected to be the largest IPO in Indian history.
The company's Rs 25,000-crore IPO will open on Oct. 14 for subscription, according to a report by Press Trust of India. The IPO is entirely based on an offer-for-sale of 14.21 crore shares by the promoter, Hyundai Motor Co. The automotive manufacturer will not offer any new issues.
Additionally, the market watchdog has also held JSW Cement Ltd.'s initial public offering worth Rs 4,000 crore. The offerings were kept 'in abeyance' and the securities board refused to provide any details.
