Component Maker Hero Motors Withdraws IPO Worth ₹900 Crore

Hero Motors has withdrawn its ₹900 Crore IPO, and will not be seeking public funding in the coming few days. Not to be mistaken with Hero MotoCorp (the bike manufacturer), Hero Motors is an auto components maker, specialising in engines and transmission parts for two-wheelers that was seeking a fresh influx of ₹500 crore as well as looking to sell ₹400 crore worth of offer-for-sale holdings of its promoters.

Hero Motors is currently backed by OP Munjal Holdings, Bhagyoday Investments, and Hero Cycles with Pankaj Munjal at the helm of the company. Pankaj is the cousin of Hero MotoCorp’s Chairman Pawan Munjal and these promoters owned over 90 percent of the company.

While the aim was to raise all that moolah, it was decided by the company that the time wasn’t right. Hero Motors has grown in revenue over the years, generating ₹1064.4 crores in FY24, of which ₹419.4 crores was gross profit. Certainly, the company has been enjoying good days as it will continue to make parts for marquee brands like Harley-Davidson, BMW Motorrad and Ducati.