Hero Motors IPO: Price Band Set for ₹3,815 Crore Valuation

Hero Motors, an Indian auto parts manufacturer, is preparing for its initial public offering (IPO) next week, with a price band set from ₹79 to ₹84 per share. This pricing aims for a company valuation of around ₹3,815 crore. The IPO subscription period is scheduled to open on September 16 and will conclude on September 18, following an anchor investor bidding day on September 15.

The upcoming share sale is valued at $105 million. Hero Motors plans to issue fresh equity worth up to ₹600 crore, supplemented by an offer for sale by existing shareholders amounting to ₹4 billion. The proceeds are earmarked for two primary objectives: significantly trimming the company's existing debt and financing the purchase of new equipment.

These funds will also support the expansion of its manufacturing facility located in Uttar Pradesh, India. Hero Motors boasts a distinguished client list, including prominent names such as BMW and Ducati. The company is under the leadership of Pankaj Munjal, a member of the Munjal family, which also manages India's largest two-wheeler producer by volume, Hero MotoCorp.