Powertrain solutions provider Hero Motors has successfully reduced its proposed public issue size to ₹1,000 crore after receiving approval from the Securities and Exchange Board of India (SEBI) on August 27. According to reports from Moneycontrol, the revised IPO comprises a fresh issue of shares worth ₹600 crore, while promoters will sell shares worth ₹400 crore through the offer-for-sale (OFS) component. The company had originally filed its draft red herring prospectus (DRHP) with SEBI in June 2025 to raise up to ₹1,200 crore through an initial public offering.
Following the implementation of SEBI rules effective April 13, which allow companies to revise the fresh issue size by up to 50% without re-filing the DRHP, Hero Motors approached the capital markets regulator on July 30 seeking approval to reduce the fresh issue size. As reported by Moneycontrol, the powertrain systems provider reduced the fresh issue size from the earlier ₹800 crore to ₹600 crore. The company also made changes to the OFS structure following letters dated August 27 from its promoter selling shareholders.
According to Moneycontrol reports, Bhagyoday Investments decided to withdraw its offer of shares worth up to ₹5 crore, while O P Munjal Holdings increased its offer size by an equivalent amount to ₹395 crore from ₹390 crore earlier. The revised OFS now comprises shares worth ₹395 crore being sold by O P Munjal Holdings and shares worth ₹5 crore being sold by Hero Cycles. The company is owned by O P Munjal Holdings and provides powertrain systems for electric and non-electric powertrains across the United States, Europe, India and the Association of Southeast Asian Nations (ASEAN) region.
As reported by Moneycontrol, Hero Motors has revised the objects of the fresh issue, with ₹190 crore allocated to repay debt and ₹200 crore to purchase equipment required for capacity expansion at its facility in Gautam Buddha Nagar, Uttar Pradesh. The remaining funds will be set aside for inorganic growth through unidentified acquisitions and general corporate purposes. The proceeds from the OFS will be received by the selling shareholders, with ICICI Securities, DAM Capital Advisors and JM Financial acting as merchant bankers to the public issue.
