Hero Motors Ltd. withdrew its DRHP (Draft Red Herring Prospectus) for a Rs. 900-crore initial public offering in what appears to be linked to a lack of disclosures made to the Securities and Exchange Board of India (SEBI), according to sources.
The DRHP was withdrawn on Oct 5.
Pankaj Munjal, Chairman and Managing Director of Hero Motors Company, responded to the queries over text and mentioned that they have three transformational contracts. These contracts are expected to significantly alter the company's operations and overall trajectory. Munjal emphasised that Hero Motors will evolve into a vastly different entity compared to its original plans.
Additionally, Profit also reached out to the legal representative of Hero Motors in its IPO Process, IndusLaw. However, the firm did not respond citing client privilege.
Furthermore, a query has been sent to the market regulator SEBI as well.
Initially filed in August, the IPO was structured to include a Rs 500-crore fresh issue of shares and a Rs 400-crore offer for sale (OFS) by the promoters.
Pankaj Munjal, the promoter, and Bhagyoday Investments Pvt. Ltd., part of the promoter group, along with Hero Cycles Ltd., were expected to offload shares through the OFS.
Proceeds from the fresh issue were intended for debt repayment, facility expansion in Uttar Pradesh, and working capital needs. ICICI Securities, DAM Capital Advisors, and JM Financial were the lead bookrunners for the offering, with KFin Technologies Ltd. as the registrar.
Hero Motors, a key entity of the Hero Group, specialises in manufacturing automotive components and is renowned for its advanced technological solutions in the two-wheeler and bicycle sectors.
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