Hero Motors Cuts IPO Size to Rs 1,000 Crore

has reduced the size of its proposed initial public offering (IPO) to Rs 1,000 crore from the earlier Rs 1,200 crore after receiving approval from the Securities and Exchange Board of India (SEBI). The revised issue comprises a fresh issue of shares worth Rs 600 crore, compared with Rs 800 crore earlier, while the offer-for-sale (OFS) component remains at Rs 400 crore. The company had filed its draft red herring prospectus (DRHP) in June 2025 to raise up to Rs 1,200 crore through the IPO. Under the revised OFS structure, Bhagyoday Investments has withdrawn its offer of shares worth up to Rs 5 crore, while O P Munjal Holdings has increased its offer by the same amount to Rs 395 crore. The remaining Rs 5 crore of the OFS will be offered by Hero Cycles. Hero Motors has also revised the utilisation of proceeds from the fresh issue. Around Rs 190 crore will be used for debt repayment, while Rs 200 crore will be utilised to purchase equipment for capacity expansion at its facility in Gautam Buddha Nagar, Uttar Pradesh. The remaining proceeds will be allocated towards inorganic growth through unidentified acquisitions and general corporate purposes.