Hero Motors withdraws DRHP for Rs 900-crore public issue, SEBI clears IPO papers of Suraksha Diagnostic

Hero Motors provides powertrain solutions (electric and non-electric) to automotive original equipment manufacturers (OEMs) in United States, Europe and India.

Capital market regulator SEBI informed through an update that Hero Motors has withdrawn its draft red herring prospectus on October 5 and Suraksha Diagnostic is allowed to launch its initial public offering.

The Rs 900-crore public issue of Hero Motors - the flagship auto components company of Hero Motors Company (HMC) Group - was proposed to be a combination of fresh issuance of equity shares worth Rs 500 crore and an offer-for-sale of Rs 400 crore worth shares.

The South Asia Growth Invest-backed company had filed preliminary papers with the regulator on August 23.

Promoter OP Munjal Holdings was reported to be selling Rs 250 crore worth of shares in the OFS, and other promoters Bhagyoday Investments, and Hero Cycles were slated to offload Rs 75 crore each worth of holding in the OFS.

Hero Motors provides powertrain solutions (electric and non-electric) to automotive original equipment manufacturers (OEMs) in United States, Europe and India. Its global customers list includes BMW AG, Ducati Motor Holding SPA, Enviolo International Inc, Formula Motorsport, HUMMINGBIRDEV Inc), and HWA AG.

O P Munjal Holdings holds 71.55 percent stake in Hero Motors. Bhagyoday Investments, and Hero Cycles hold 6.28 percent and 2.03 percent shares, respectively, while investor South Asia Growth Invest LLC has 12.27 percent shareholding in the company.

ICICI Securities, DAM Capital Advisors and JM Financial were the book running lead managers to the issue.

Global investment firm OrbiMed-backed Suraksha Diagnostic, which had filed draft papers with the SEBI on July 23 this year, has received the observation letter from the regulator on September 30. The issuance of this letter means the company can launch its IPO within the next one year.

The IPO will comprise solely an offer-for-sale (OFS) of 1.9 crore equity shares by the existing shareholders.

Promoters Somnath Chatterjee, Ritu Mittal, and Satish Kumar Verma will be selling 21.32 lakh equity shares each via OFS, while investor OrbiMed Asia II Mauritius is going to sell 1.06 crore shares, the maximum amongst them. Munna Lal Kejriwal, and Santosh Kumar Kejriwal will be other selling shareholders.

Ritu Mittal, Satish Kumar Verma, OrbiMed, and Late Kishan Kumar Kejriwal are the largest shareholders with 22.87 percent, 19.38 percent, 19.51 percent and 11.15 percent stakes (prior to the conversion of CCPS), respectively.

With headquartered in east India, the Kolkata-based company provides pathology and radiology testing, and medical consultation services, comparing itself with Agilus Diagnostics, Dr Lal Pathlabs, Metropolis Healthcare, and Thyrocare Technologies.

ICICI Securities, Nuvama Wealth Management, and SBI Capital Markets are the merchant bankers to the issue.

However, the SEBI has retained the issuance of observations for the draft offer document of JSW Cement in abeyance. The cement company plans to raise Rs 4,000 crore via combination of fresh issue and offer-for-sale. It filed the preliminary IPO papers with the regulator on August 16, 2024.