Business: Hero Motors Company Group, one of the most prominent corporate houses in the country, is soon going to make a new splash in the stock market. The group's auto component manufacturing company Hero Motors is bringing an IPO of Rs 900 crore. The draft for the proposed IPO has been submitted to market regulator SEBI.

Fresh issue of 500 crores in IPO

Hero Motors submitted a draft for its proposed IPO to SEBI on August 23. According to the IPO draft, the proposal made by the company to the market regulator includes a fresh issue of shares worth Rs 500 crore and an offer for sale of Rs 400 crore. Through the offer for sale, the promoters of the company want to reduce their stake in the company by selling their share of shares.

Promoters and these investors will sell shares in OFS

Hero Motors has the support of South Asia Growth Invest. In the IPO, the company's promoter OP Munjal Holdings plans to raise Rs 250 crore by selling its share of shares. Apart from that, Bhagyodaya Investments and Hero Cycles are both going to sell shares worth Rs 75 crore each in the OFS.

His stake in Hero Motors is still

Promoter OP Munjal Holdings currently holds the largest stake of 71.55 percent in Hero Motors. Bhagyodaya Investments holds 6.28 percent and Hero Cycles holds 2.03 percent. South Asia Growth Invest LLC holds 12.27 percent stake in Hero Motors.

BMW and Ducati are also customers

The company manufactures both electric and non-electric powertrains. Its customers include many OEMs in the US, Europe, India and ASEAN. Its major customers include big names like BMW, Ducati, Envilo International, Formula Motorsport, Humming Bird EV, HWA. Hero Motors is the only company in India that manufactures CVTs for global e-bike companies. The company has 6 manufacturing facilities in India, UK and Thailand.

IPO boom in Indian market

Hero Motors' IPO is coming at a time when there is a boom of IPOs in the Indian stock market. Auto sector companies are witnessing a lot of growth amid IPOs coming at a record pace. After a gap of decades, the first IPO of the auto sector has recently come, which was brought by Ola Electric. The IPO also got a good response in the market. South Korean automobile company Hyundai is also preparing to bring an IPO of its Indian unit.