Hero Motors has set the price band for its upcoming initial public offering at Rs 79 to Rs 84 per share. The Rs 1,000 crore IPO will open for public subscription on 16 September and close on 18 September, with anchor bidding scheduled for 15 September.
The IPO comprises a fresh issue of up to Rs 600 crore and an offer for sale of up to Rs 400 crore by existing shareholders. At the upper end of the price band, the company is expected to have a valuation of around Rs 3,815 crore.
Hero Motors plans to use Rs 190 crore from the fresh issue towards debt repayment, while another Rs 200 crore will be allocated towards purchasing equipment for capacity expansion at its Gautam Buddha Nagar facility in Uttar Pradesh. The remaining proceeds will support inorganic growth and general corporate purposes.
The company provides engineered powertrain solutions to automotive original equipment manufacturers across the US, Europe, India and ASEAN markets. Its portfolio covers electric and non-electric powertrains for two-wheelers, performance vehicles, e-bikes, off-road vehicles, electric and hybrid cars, heavy-duty vehicles and eVTOL applications.
Hero Motors has customers including BMW and Ducati and operates manufacturing facilities across India, the UK and Thailand. The company’s shares are expected to list on the stock exchanges on 23 September.
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