Hero Motors, owned by O P Munjal Holdings, has raised ₹300 crore from 15 anchor investors ahead of its initial public offering (IPO), which opens for public subscription on September 16.
The automotive components manufacturer raised the funds on September 15, a day before the IPO opens. The company has fixed the price band at ₹79 to ₹84 per share for its ₹1,000-crore public issue, which will remain open until September 18.
Hero Motors has allotted 3.57 crore equity shares to anchor investors at the upper end of the price band.
Seven domestic mutual fund houses received 2.91 crore shares through 16 different schemes. The investors include ICICI Prudential AMC, Kotak Mahindra AMC, JM Financial Mutual Fund, Bank of India Mutual Fund, Edelweiss, ITI Mutual Fund and The Wealth Company Mutual Fund.
ICICI Prudential Life Insurance and Edelweiss Life Insurance Company have together invested ₹20 crore for 23.81 lakh shares.
Other anchor investors include 3P India Equity Fund, LC Pharos Multi Strategy Fund, Unity Small Finance Bank, Societe Generale, ASAS Global Fund and Navi Finserv.
₹600 Crore Fresh Issue
The ₹1,000-crore IPO comprises a fresh issue of shares worth up to ₹600 crore and an offer for sale (OFS) of ₹400 crore by promoters O P Munjal Holdings and Hero Cycles.
Hero Motors plans to use ₹190 crore from the fresh issue to repay debt. Another ₹200 crore will be used to purchase equipment for expanding the capacity of its facility in Gautam Buddha Nagar, Uttar Pradesh.
The remaining funds will be used for potential acquisitions and general corporate purposes.
Global Automotive Customers
Hero Motors manufactures engineered powertrain solutions for automotive original equipment manufacturers across the United States, Europe, India and the Association of Southeast Asian Nations region.
Its customers include BMW AG, Ducati Motor Holding SPA, Enviolo International Inc, Formula Motorsport, HUMMINGBIRDEV Inc and HWA AG.
The IPO is being managed by ICICI Securities, DAM Capital Advisors and JM Financial.
