Hero Motors IPO has encountered a setback as the company has withdrawn its draft red herring prospectus (DRHP) for the proposed ₹900 crore initial public offering. The withdrawal was announced on October 5, shortly after the draft papers were filed in August. According to the processing status on the SEBI website, the decision to retract the DRHP was due to technical issues that necessitated revisions requested by SEBI.
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The company clarified that the withdrawal is not indicative of a weak secondary market. Instead, they plan to address the regulatory feedback and refile the DRHP within a month. This indicates Hero Motors’ commitment to adhering to regulatory standards before proceeding with the IPO.
The initial IPO plan included a fresh issue of shares worth ₹500 crore, along with an offer for sale (OFS) totaling ₹400 crore. The OFS comprised shares valued at ₹250 crore from OP Munjal Holdings and ₹75 crore each from Bhagyoday Investments and Hero Cycles.
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The funds raised from the fresh issue were intended for several purposes, including the repayment of certain borrowings, allocating ₹124 crore for capital expenditure on equipment to expand capacity at the Gautam Buddha Nagar facility in Uttar Pradesh, and covering general corporate expenses.
In other market developments, National Securities Depository Ltd (NSDL), Zinka Logistics Solutions, Standard Glass Lining Technology, and Suraksha Diagnostic have received SEBI