Mumbai: Hero Motors is preparing to tap the primary market as investor appetite for public offerings remains strong. In an exclusive conversation with The Free Press Journal, Chairman Pankaj M. Munjal and Managing Director and Chief Executive Officer Amit Gupta outlined the rationale for the IPO and the company’s ambitions.
Why Hero Motors is going public?
The management said the public issue would support the company’s phase of development and strengthen its financial position. A share of the proceeds is expected to be deployed towards reducing debt, which could improve the balance sheet and provide flexibility for investments.
The remaining funds would support capital expenditure, capacity expansion and new business opportunities. The listing would also give Hero Motors access to public markets as it seeks to expand its operations and customer relationships.
EV and technology push
Electric mobility forms a part of the company’s strategy. Hero Motors is developing capabilities aimed at meeting changing requirements across the automotive industry, where manufacturers are increasing investments in cleaner mobility and advanced components.
Its technology centres in India and the United Kingdom are expected to play an important role in product development, engineering and research. The company is also evaluating opportunities beyond its automotive operations, including projects connected with the marine and aviation sectors.
International growth opportunities
Hero Motors plans to deepen its presence in overseas markets while widening its customer base. The leadership believes its engineering capabilities, international operations and technology-led approach can help the company secure new programmes and build relationships with global customers.
Profitability and risks
The discussion also covered profitability, research and development expenditure and the risks associated with future growth. These include changes in demand, execution requirements, technological shifts and conditions in domestic and international markets.
The management said expansion would be pursued while maintaining financial discipline. Debt reduction, selective capital expenditure, product development and diversification are expected to remain central to Hero Motors’ strategy following the IPO.
