Hero Motors IPO
Hero Motors LtdMainboard
This IPO has listed.
- Open date
- 16 Sep 2026
- Close date
- 18 Sep 2026
- Min. Investment
- ₹14,952
- Lot Size
- -
- Fresh Issue
- ₹600.00 Cr
- Price Range
- -
- Face Value
- -
- IPO Document
- DRHP - PDF(opens in a new tab)
Subscription rate
- Qualified Institutional Buyers1.49x
- Non-Institutional Investors9.86x
- Retail-Individual Investors8.23x
- Total6.66x
Schedule
- Completed: IPO open date16 Sep 2026
- Completed: IPO close date18 Sep 2026
- Completed: Allotment date21 Sep 2026
- Completed: Funds unblock or debit22 Sep 2026
- Completed: Tentative listing date23 Sep 2026
About
Promoter shareholding in Hero Motors Ltd, before and after the issue.
| Promoter | Pre-issue shares | Pre-issue % | Post-issue shares | Post-issue % |
|---|---|---|---|---|
| O P Munjal Holdings | 27,31,23,055 | 70.60% | 22,60,99,246 | 49.34% |
| Pankaj Munjal | 94,00,436 | 2.43% | 94,00,436 | 2.05% |
| Charu Munjal | 9,42,425 | 0.24% | 9,42,425 | 0.21% |
| Abhishek Munjal | 7,06,210 | 0.18% | 7,06,210 | 0.15% |
| Hero Cycles Limited | 77,52,750 | 2.00% | 71,57,512 | 1.56% |
| Aditya Munjal | 7,07,022 | 0.18% | 7,07,022 | 0.15% |
| Pankaj Munjal (on behalf of Mu | 3,92,344 | 0.10% | 3,92,344 | 0.09% |
| Bhagyoday Investments Private | 2,39,78,804 | 6.20% | 2,39,78,804 | 5.23% |
| Pankaj Munjal (on behalf of Om | 1,05,37,140 | 2.72% | 1,05,37,140 | 2.30% |
Financials of Hero Motors IPO
| Key Performance Indicators | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|
| Operating Revenue | - | - | - |
| Other Income | - | - | - |
| Total Income | 1064.39 | 1089.59 | 1188.35 |
| Total Expenses | 1059.11 | 1072.16 | 1155.74 |
| Profit Before Tax | - | - | - |
| Total Profit | 13.42 | 25.20 | 43.57 |
Hero Motors IPO Strengths & Risks
- Among India's Leading Solutions Provider to Global E-Mobility Industry backed by Diversified Product and Service Offerings.
- Growing Market Presence in the Electric Bikes and Premium Two-Wheelers Segments.
- Longstanding Relationships with Premier Global Original Equipment Manufacturers and Expertise in Delivering Solutions.
- Advanced Infrastructure with Geographically Diverse Operations.
- Strong Research and Development Capabilities and Long-Term Partnerships.
- Risks Relating to the Business: The company generates a portion of its revenue from operations from jurisdictions outside India, in particular, from Europe which contributed 26.27%, 29.33%, 32.47% and 29.34% of the company's revenue from operations, in the nine months ended December 31, 2024 and Fiscal 2024, 2023 and 2022, respectively. Any adverse events affecting these jurisdictions could have an adverse impact on its revenue from operations.
- Risks Relating to the Business: The company's business is dependent on the performance of certain industries particularly e-bikes and two wheelers, both in the Indian and overseas markets. Any adverse changes in the conditions affecting these industries can adversely impact its business, results of operations, cash flows and financial condition.
- Risks Relating to the Business: The company depends on a certain limited set of suppliers for the supply of critical raw materials. Further, the company does not have definitive supply agreements with all the company's suppliers for the supply of raw materials. Interruptions in the supply of raw materials could adversely affect its business, financial condition, results of operations and cash flows.
- Risks Relating to the Business: The company is subject to strict performance requirements, including, but not limited to, quality and delivery, by its customers, and any failures by the company to comply with these performance requirements may lead to recalls or warranty liability claims, reduction of share of business or the cancellation of existing or future orders, which could have a material adverse effect on its business, financial condition, results of operations and cash flows.
- Risks Relating to the Business: The company's business largely depends upon its top 10 customers. In the nine months ended December 31, 2024 and Fiscal 2024, 2023 and 2022 the company's revenue from operations from top 10 customers was Rs. 6,010.73 million, Rs. 8,191.86 million, Rs. 9,369.23 million, and Rs. 7,859.23 million, representing 74.46%, 76.96%, 88.84%, and 85.97% of its revenue from operations, respectively. The loss of any of these customers could have a material adverse effect on the company's business, financial condition, results of operations and cash flows.
- Risks Relating to the Business: The company may not be able to anticipate and respond swiftly to changing technological and market trends, as well as to develop new products aligned with customer demands in the automotive sector, which could have an adverse impact on its financial condition.
- Risks Relating to the Business: The company may not be able to compete effectively in the global powertrain solutions industry which could have a material adverse effect on its business, financial condition, results of operations and cash flows.
- Risks Relating to the Business: The company's inability to maintain and protect its brand and business reputation could adversely affect the company's business, prospects and financial performance.
- Risks Relating to the Business: The company's manufacturing facilities and technology centres are subject to operating risks. Any shutdown of its existing technology centres and manufacturing facilities or future technology centres and manufacturing facilities or any other operational problems caused by unforeseen events may reduce sales, market share and adversely affect its business, cash flows, results of operations and financial condition.
- Risks Relating to the Business: The Company may not be successful in implementing its strategies, including increasing focus on providing complete systems and powertrain solution for e-mobility segment, expanding into other market segments and geographies which may adversely affect its business, cash flows, results of operations and future prospects.
- Risks Relating to the Business: The Company has availed exemption from SEBI in respect of the requirement of complying with statutory lock-in under SEBI ICDR Regulations in respect of certain Equity Shares, which requires the company to comply with certain conditions including submissions/undertakings provided by the Company. Any failures by the Company to comply with these conditions may lead to non-compliance with the exemption granted by SEBI.
- Risks Relating to the Business: Certain of its Subsidiaries have suffered losses in the nine months ended December 31, 2024 and the last three Fiscals. There can be no assurance that its Subsidiaries will be profitable in future, or that the company will be able to benefit from the funds the company has infused in them.
- Risks Relating to the Business: The company has substantial capital expenditure and working capital requirements and may require additional capital and financing in the future and its operations could be curtailed if the company is unable to obtain the required additional capital and financing when needed.
- Risks Relating to the Business: If the company experience a cyber security breach or other security incident or unauthorised parties otherwise obtain access to its customers data, the company may be perceived as not being secure, the company's reputation may be harmed, demand for its platform and products may reduce and the company may incur significant liabilities.
- Risks Relating to the Business: The Company, Subsidiaries, Promoters, Directors, Key Managerial Personnel and members of the Senior Management are involved in certain legal and regulatory proceedings. Any adverse decision in such proceedings may have a material adverse effect on its business, financial condition, cash flows and results of operations.
- Risks Relating to the Business: The company depends on its senior management and other personnel with technical expertise, and if the company is unable to recruit and retain qualified and skilled personnel,the company's business and its ability to operate or grow the company's business may be adversely affected.
- Risks Relating to the Business: The company derives a certain portion of its revenue from operations from the company's Material Subsidiary, Hewland Engineering Limited ("HEL"). In the event there is any adverse impact on the business operations of HEL, the company's business, results of operations, cash flows and financial condition may be adversely affected.
- Risks Relating to the Business: There have been delays in payment of statutory dues by the Company and its Subsidiaries in the nine months ended December 31, 2024, Fiscal 2024, 2023 and 2022. Inability to make timely payment of the company's statutory dues could result us into paying interest on the delay in payment of statutory dues which could adversely affect its business, the company's results of operations and financial condition.
- Risks Relating to the Business: The company has provided guarantee and standby letters of credit to lenders for three of its Subsidiaries and any failures to repay such loans, may affect its business, results of operations and financial condition.
- Risks Relating to the Business: The company's previous statutory auditors have included certain emphasis of matters in their audit reports on the consolidated financial statements as at and for the year ended March 31, 2022. The company cannot assure you that any similar emphasis of matters, will not form part of its financial statements for the future fiscal periods, which could have an adverse effect on the company's reputation, the trading price of the Equity Shares, results of operations, cash flows and financial condition.
- Risks Relating to the Business: The company is subject to risks associated with expansion into new geographic regions.
- Risks Relating to the Business: The company may undertake acquisitions, investments, joint ventures, technical collaborations or other strategic alliances, which may have a material adverse effect on its ability to manage the company's business, and such undertakings may be unsuccessful.
- Risks Relating to the Business: The company may be unable to adequately protect its intellectual property and may be subject to risks of infringement claims.
- Risks Relating to the Business: The company may not be able to sustain growth in the company's revenue from operations and profit for the year in future periods which could have an adverse impact on its financial condition and results of operation.
- Risks Relating to the Business: The company's Promoter is involved in certain Group Companies which are empowered to engage in similar line of businesses as the company's.
- Risks Relating to the Business: The company has received queries/ requests from certain erstwhile shareholders holding physical share certificates, in relation to entitlement to shares and dividend, conversion of their physical share certificates into dematerialised form and the status of shares held in physical form. the company may continue receiving such requests in the future.
- Risks Relating to the Business: While its business is not seasonal, however, the company's business prospects and future financial performance depend on the demand for its products. Any decrease in demand for such products could adversely affect its business, results of operations and cash flows.
- Risks Relating to the Business: Any disruption to power or fuel sources could increase its production costs and adversely affect the company's business, financial condition, cash flows and results of operations.
- Risks Relating to the Business: The company's business and profitability are substantially dependent on the availability of steel, the company's primary raw material and any disruption to the timely and adequate supply of steel, may adversely impact its business, results of operations, cash flows and financial condition.
- Risks Relating to the Business: The company has incurred indebtedness and an inability to comply with repayment and other covenants in the company's financing agreements could adversely affect its business, results of operations, cash flows and financial condition.
- Risks Relating to the Business: The company's funding requirements and the proposed deployment of Net Proceeds are not appraised by any bank, financial institution, or any other independent agency, which may affect its business and results of operations. Further, the schedule of the implementation of the Objects for which funds are being raised in the Offer, is subject to risk of unanticipated delays in implementation and cost overruns.
- Risks Relating to the Business: Any variation in the utilization of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders' approval. While the Company will receive proceeds from the Fresh Issue, it will not receive any proceeds from the Offer for Sale.
- Risks Relating to the Business: If the company's Net Proceeds to be utilised towards inorganic growth through unidentified acquisitions are insufficient for the cost of its proposed inorganic acquisition, the company may have to seek alternative forms of funding.
- Risks Relating to the Business: The company is exposed to counterparty credit risk and any delay in receiving payments or non-receipt of payments may adversely impact its business, financial condition, cash flows and results of operations.
- Risks Relating to the Business: The company intend to utilize a portion of the Net Proceeds for funding its capital expenditure requirements. The company's inability to successfully implement such capacity expansion or any future capacity expansion plans could have a material adverse effect on its business, prospects, operations, prospects or financial results.
- Risks Relating to the Business: The company is dependents on third parties for the transportation and timely delivery of its products to customers. Any failures by or loss of a third party transport service provider could result in delays and increased costs, which may adversely affect the company's business.
- Risks Relating to the Business: Certain of the company properties, including the company's Registered Office and Corporate Office, are located on leased premises. If these leases and license agreements are terminated or not renewed and the company is not able to identify alternative premises on terms acceptable to the company, its could adversely affect its business, financial condition, results of operations, and cash flows.
- Risks Relating to the Business: A portion of the land where its Mangli Facility in Ludhiana, Punjab is located is yet to be registered in the favour of the Company
- Risks Relating to the Business: The company is unable to trace some of its historical corporate and secretarial records and there has been a delay in filing of statutory forms with the RoC with respect to the appointment of an independent director. The company cannot assure you that no legal proceedings or regulatory actions will be initiated against the Company in the future in in this regard which may impact its financial condition and reputation.
- Risks Relating to the Business: One of its Promoter Group entities, namely Nipman Fastener Industries Private Limited, is currently under the corporate insolvency resolution process under Insolvency and Bankruptcy Code, 2016. Additionally, insolvency proceedings have been initiated against one of the company's Promoter Group members, under Insolvency and Bankruptcy Code, 2016.
- Risks Relating to the Business: One of its Directors was on the board of directors of companies which were struck off in the past.
- Risks Relating to the Business: The company requires certain licenses, permits and approvals in the ordinary course of business, and the failures to obtain or retain them in a timely manner may materially adversely affect its operations.
- Risks Relating to the Business: The company's operations involve activities and materials which are hazardous in nature and could result in a suspension of operations and/or the imposition of civil or criminal liabilities which could adversely affect its business, results of operations, cash flow and financial condition.
- Risks Relating to the Business: The loss of certain independent certification and accreditation of its products and the manufacturing practices that the company has adopted could harm the company's business.
- Risks Relating to the Business: The company's inability to accurately forecast demand for products that the company manufacture and supply to its customers and manage the company's inventory may have an adverse effect on its business, results of operations, financial condition and cash flows.
- Risks Relating to the Business: The company's insurance coverage may not be adequate or the company may incur uninsured losses or losses in excess of its insurance coverage which may impact on the company's financial condition, cash flows and results in operations.
- Risks Relating to the Business: Exchange rate fluctuations may adversely affect its business, financial conditions, cash flows and results of operations.
- Risks Relating to the Business: The company has certain contingent liabilities that have been disclosed in the company's financial statements, which if they materialize, may adversely affect its results of operations, cash flows and financial condition.
- Risks Relating to the Business: The company enters into certain related party transactions in the ordinary course of its business and the company cannot assure you that such transactions will not have an adverse effect on its results of operation and financial condition.
- Risks Relating to the Business: Fraud, theft, employee negligence or similar incidents may adversely affect its results of operations and cash flows.
- Risks Relating to the Business: Any disruption to the steady and regular supply of workforce for its operations, including due to strikes, work stoppages or increased wage demands by its workforce or any other kind of disputes with the company's workforce or its inability to control the composition and cost of the company's workforce could adversely affect its business, cash flows and results of operations.
- Risks Relating to the Business: The company engages contract labour for carrying out certain of its operations and the company is responsible for paying the wages of such workers. If the independent contractors through whom such workers are hired default on their obligations, this could have an adverse effect on its results of operations and financial condition.
- Risks Relating to the Business: The company has applied for benefits under a production linked incentive scheme. In the event its application is rejected or there are any changes in the incentives under the PLI scheme, the company's revenue from operations and cash flows will be impacted.
- Risks Relating to the Business: Technology failures could disrupt its operations and adversely affect the company's business operations and financial performance.
- Risks Relating to the Business: The company imports machinery and raw materials from foreign countries and the same is subject to certain risks which may adversely affect its business, results of operations, financial condition and cash flows.
- Risks Relating to the Business: Uncertain and lengthy vendor selection process with the company's customers may have an adverse impact on its business, cash flows, financial conditions and results of operations.
- Risks Relating to the Business: Information relating to the company's annual installed capacity, annual average available capacity, actual production and the capacity utilization of its manufacturing facilities included in this Draft Red Herring Prospectus is based on various assumptions and estimates and future production and capacity utilization may vary.
- Risks Relating to the Business: Under-utilization of its manufacturing capacities and an inability to effectively utilize the company's expanded and proposed manufacturing capacities could have an adverse effect on its business, prospects, financial performance and cash flows.
- Risks Relating to the Business: The company's Promoters and members of its Promoter Group will continue to hold a significant equity stake in the Company after the Offer and their interests may differ from those of the other shareholders.
- Risks Relating to the Business: Certain sections of this Draft Red Herring Prospectus disclose information from the CRISIL Report which is a paid report and commissioned and paid for by the company exclusively in connection with the Offer and any reliance on such information for making an investment decision in the Offer is subject to inherent risks.
- Risks Relating to the Business: The company's Promoters and Directors are interested in the Company in addition to their remuneration and reimbursement of expenses and the Company has acquired and is in the process of acquiring land from certain related parties in the last five years.
- Risks Relating to the Business: The company has entered into a joint venture agreement with Yamaha Motor Co. Ltd to establish its Subsidiary, HYM Drive Systems Private Limited ("HYM") which provides a right to Mitsui & Co. Ltd. ("Mitsui") to acquire 20% of the share capital of HYM.
- Risks Relating to the Business: The company has entered into a joint venture agreement between Vermogensverwaltung Plettenberg GmbH and CO KG along with its group companies ("STP Group"), to establish our subsidiary MSIPL under which STP Group holds 49% of the share capital of MSIPL.
- Risks Relating to the Business: The company's ability to access capital at attractive costs depends on its credit ratings. Non-availability of credit ratings or a poor rating may restrict the company's access to capital and thereby adversely affect its business, financial conditions, cash flows and results of operations.
- Risks Relating to the Business: The company may not successfully protect its technical know-how, which may result in the loss of the company's competitive advantage.
- Risks Relating to the Business: A portion of the Net Proceeds may be utilized for repayment or pre-payment of a loan availed by the Company from ICICI Bank Limited which is an affiliate of ICICI Securities Limited, one of the BRLMs.
- Risks Relating to the Business: The company has in this Draft Red Herring Prospectus included certain non-GAAP financial measures and certain other industry measures related to its operations and financial performance. These non-GAAP measures and industry measures may vary from any standard methodology that is applicable across the powertrains industry, alloys and metallics and therefore may not be comparable with financial or industry related statistical information of similar nomenclature computed and presented by other companies.
- Risks Relating to the Business: The company has issued Equity Shares during the preceding twelve months at a price which may be below the Offer Price.
- Risks Relating to the Business: The Company may not be able to pay dividends in the future. The company's ability to pay dividends in the future will depend on its earnings, financial condition, working capital requirements, capital expenditures, and restrictive covenants of the company's financing arrangements.
- Risks Relating to the Business: Significant differences exist between Ind AS and other accounting principles, such as U.S. GAAP and IFRS, which investors may be more familiar with and may consider them material to their assessment of its financial condition.
- Risks Relating to the Business: The company generates a portion of its revenue from operations from jurisdictions outside India, in particular, from Europe which contributed 33.59%, 28.45% and 29.33%, of the company's revenue from operations, in Fiscal 2026, 2025 and 2024, respectively. Any adverse events affecting these jurisdictions could have an adverse impact on its revenue from operations.
- Risks Relating to the Business: The company's business is dependent on the performance of certain industries particularly e-bikes and two wheelers, both in the Indian and overseas markets. Any adverse changes in the conditions affecting these industries can adversely impact its business, results of operations, cash flows and financial condition.
- Risks Relating to the Business: The company depends on a certain limited set of suppliers for the supply of critical raw materials. Further, the company does not have definitive supply agreements with all its suppliers for the supply of raw materials. Interruptions in the supply of raw materials could adversely affect the company's business, financial condition, results of operations and cash flows.
- Risks Relating to the Business: The company is subject to strict performance requirements, including, but not limited to, quality and delivery, by its customers, and any failures by the company to comply with these performance requirements may lead to recalls or warranty liability claims, reduction of share of business or the cancellation of existing or future orders, which could have a material adverse effect on the company's business, financial condition, results of operations and cash flows.
- Risks Relating to the Business: The company's business largely depends upon its top 10 customers. In Fiscals 2026, 2025 and 2024 the company's revenue from operations from top 10 customers was Rs. 8,661.40 million, Rs. 8,501.96 million and Rs. 8,191.86 million, representing 72.89%, 78.03% and 76.96% of its revenue from operations, respectively. The loss of any of these customers could have a material adverse effect on the company's business, financial condition, results of operations and cash flows.
- Risks Relating to the Business: The company may not be able to anticipate and respond swiftly to changing technological and market trends, as well as to develop new products aligned with customer demands in the automotive sector, which could have an adverse impact on its financial condition.
- Risks Relating to the Business: The company may not be able to compete effectively in the global powertrain solutions industry which could have a material adverse effect on its business, financial condition, results of operations and cash flows.
- Risks Relating to the Business: The company operations involve activities and materials which are hazardous in nature and could result in a suspension of operations and/or the imposition of civil or criminal liabilities which could adversely affect its business, results of operations, cash flow and financial condition.
- Risks Relating to the Business: The company's inability to maintain and protect its brand and business reputation could adversely affect the company's business, prospects and financial performance.
- Risks Relating to the Business: The company's manufacturing facilities and technology centres are subject to operating risks. Any shutdown of its existing technology centres and manufacturing facilities or future technology centres and manufacturing facilities or any other operational problems caused by unforeseen events may reduce sales, market share and adversely affect the company's business, cash flows, results of operations and financial condition.
- Risks Relating to the Business: The Company may not be successful in implementing its strategies, including increasing focus on providing complete systems and powertrain solution for e-mobility segment, expanding into other market segments and geographies which may adversely affect the company's business, cash flows, results of operations and future prospects.
- Risks Relating to the Business: The Company has availed exemption from SEBI in respect of the requirement of complying with statutory lock-in under SEBI ICDR Regulations in respect of certain Equity Shares, which requires it to comply with certain conditions including submissions/undertakings provided by its. Any failures by the company to comply with these conditions may lead to non-compliance with the exemption granted by SEBI.
- Risks Relating to the Business: Certain of its Subsidiaries have suffered losses in the last three Fiscals. There can be no assurance that the company's Subsidiaries will be profitable in future, or that its will be able to benefit from the funds the company has infused in them.
- Risks Relating to the Business: The company has substantial capital expenditure and working capital requirements and may requires additional capital and financing in the future and its operations could be curtailed if the company is unable to obtain the required additional capital and financing when needed.
- Risks Relating to the Business: If the company experiences a cyber security breach or other security incident or unauthorised parties otherwise obtain access to its customers data, the company may be perceived as not being secure, its reputation may be harmed, demand for the company's platform and products may reduce and its may incur significant liabilities.
- Risks Relating to the Business: The Company, Subsidiaries, Promoters, Directors, Key Managerial Personnel and members of the Senior Management are involved in certain legal and regulatory proceedings. Any adverse decision in such proceedings may have a material adverse effect on its business, financial condition, cash flows and results of operations.
- Risks Relating to the Business: The company depends on its senior management and other personnel with technical expertise, and if the company is unable to recruit and retain qualified and skilled personnel, its business and the company's ability to operates or grow its business may be adversely affected.
- Risks Relating to the Business: The company derives a certain portion of its revenue from operations from the company's Material Subsidiary, Hewland Engineering Limited ("HEL"). In the event there is any adverse impact on the business operations of HEL, its business, results of operations, cash flows and financial condition may be adversely affected.
- Risks Relating to the Business: There have been delays in payment of statutory dues by the Company and its Subsidiaries in Fiscal 2026, Fiscal 2025 and Fiscal 2024. Inability to make timely payment of the company's statutory dues could result it into paying interest on the delay in payment of statutory dues which could adversely affect the company's business, its results of operations and financial condition.
- Risks Relating to the Business: The company has provided guarantee and standby letters of credit to lenders for three of its Subsidiaries and any failures to repay such loans, may affect the company's business, results of operations and financial condition.
- Risks Relating to the Business: The company is subject to risks associated with expansion into new geographic regions.
- Risks Relating to the Business: Its may undertake acquisitions, investments, joint ventures, technical collaborations or other strategic alliances, which may have a material adverse effect on the company's ability to manage its business, and such undertakings may be unsuccessful.
- Risks Relating to the Business: Its Promoters and Directors are interested in the Company in addition to their remuneration and reimbursement of expenses and the Company has acquired and is in the process of acquiring land from certain related parties in the last five years.
- Risks Relating to the Business: Its may be unable to adequately protect the company's intellectual property and may be subject to risks of infringement claims.
- Risks Relating to the Business: Its may not be able to sustain growth in the company's revenue from operations and profit for the year in future periods which could have an adverse impact on its financial condition and results of operation.
- Risks Relating to the Business: The company's Promoter is involved in certain Group Companies which are empowered to engage in similar line of businesses as the company.
- Risks Relating to the Business: The company has received queries/ requests from certain erstwhile shareholders holding physical share certificates, in relation to entitlement to shares and dividend, conversion of their physical share certificates into dematerialised form and the status of shares held in physical form. Its may continue receiving such requests in the future.
- Risks Relating to the Business: While the company's business is not seasonal, however, its business prospects and future financial performance depends on the demand for the company's products. Any decrease in demand for such products could adversely affect its business, results of operations and cash flows.
- Risks Relating to the Business: Any disruption to power or fuel sources could increase the company's production costs and adversely affect its business, financial condition, cash flows and results of operations.
- Risks Relating to the Business: The company's business and profitability are substantially dependent on the availability of steel, its primary raw material and any disruption to the timely and adequate supply of steel, may adversely impact the company's business, results of operations, cash flows and financial condition.
- Risks Relating to the Business: The company has incurred indebtedness and an inability to comply with repayment and other covenants in its financing agreements could adversely affect the company's business, results of operations, cash flows and financial condition.
- Risks Relating to the Business: The company funding requirements and the proposed deployment of Net Proceeds are not appraised by any bank, financial institution, or any other independent agency, which may affect its business and results of operations. Further, the schedule of the implementation of the Objects for which funds are being raised in the Offer, is subject to risk of unanticipated delays in implementation and cost overruns.
- Risks Relating to the Business: Any variation in the utilization of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders approval. While the Company will receive proceeds from the Fresh Issue, it will not receive any proceeds from the Offer for Sale.
- Risks Relating to the Business: If the company's Net Proceeds to be utilised towards inorganic growth through unidentified acquisitions are insufficient for the cost of its proposed inorganic acquisition, the company may have to seek alternative forms of funding.
- Risks Relating to the Business: The company is exposed to counterparty credit risk and any delay in receiving payments or non-receipt of payments may adversely impact its business, financial condition, cash flows and results of operations.
- Risks Relating to the Business: The company requires certain licenses, permits and approvals in the ordinary course of business, and the failures to obtain or retain them in a timely manner may materially adversely affect its operations.
- Risks Relating to the Business: The company had applied for incentives under certain government schemes in the past for which its did not qualify. Any inability to obtain such incentives in the future could adversely affect the company's results of operations and financial condition.
- Risks Relating to the Business: The company is dependent on third parties for the transportation and timely delivery of its products to customers. Any failures by or loss of a third party transport service provider could result in delays and increased costs, which may adversely affect the company's business.
- Risks Relating to the Business: Certain of the company's properties, including its Registered Office and Corporate Office, are located on leased premises. If these leases and license agreements are terminated or not renewed and the company is not able to identify alternative premises on terms acceptable to the company, it could adversely affect the company's business, financial condition, results of operations, and cash flows.
- Risks Relating to the Business: The company intends to utilize a portion of the Net Proceeds for funding its capital expenditure requirements. The company's inability to successfully implement such capacity expansion or any future capacity expansion plans could have a material adverse effect on its business, prospects, operations, prospects or financial results.
- Risks Relating to the Business: A portion of the land where the company's Mangli Facility in Ludhiana, Punjab is located is yet to be registered in the favour of the Company.
- Risks Relating to the Business: The company is unable to trace some of its historical corporate and secretarial records and there has been a delay in filing of statutory forms with the RoC with respect to the appointment of an independent director. The company cannot assure you that no legal proceedings or regulatory actions will be initiated against the Company in the future in in this regard which may impact its financial condition and reputation.
- Risks Relating to the Business: One of the company's Promoter Group entities, namely Nipman Fastener Industries Private Limited, is currently under the corporate insolvency resolution process under liquidation under the Insolvency and Bankruptcy Code, 2016. Additionally, insolvency proceedings have been initiated against one of its Promoter Group members, Priyanka Malhotra under the Insolvency and Bankruptcy Code, 2016.
- Risks Relating to the Business: Certain of the company's Directors was on the board of directors of companies which were struck off in the past.
- Risks Relating to the Business: The loss of certain independent certification and accreditation of its products and the manufacturing practices that the company has adopted could harm its business.
- Risks Relating to the Business: The company's inability to accurately forecast demand for products that its manufacture and supply to the company's customers and manage its inventory may have an adverse effect on the company's business, results of operations, financial condition and cash flows.
- Risks Relating to the Business: The company's insurance coverage may not be adequate or its may incur uninsured losses or losses in excess of the company's insurance coverage which may impact on its financial condition, cash flows and results in operations.
- Risks Relating to the Business: Exchange rate fluctuations may adversely affect the company's business, financial conditions, cash flows and results of operations.
- Risks Relating to the Business: The company has certain contingent liabilities that have been disclosed in its financial statements, which if they materialize, may adversely affect the company's results of operations, cash flows and financial condition.
- Risks Relating to the Business: The company enters into certain related party transactions in the ordinary course of its business and the company cannot assure you that such transactions will not have an adverse effect on its results of operation and financial condition.
- Risks Relating to the Business: Fraud, theft, employee negligence or similar incidents may adversely affect the company's results of operations and cash flows.
- Risks Relating to the Business: Any disruption to the steady and regular supply of workforce for the company operations, including due to strikes, work stoppages or increased wage demands by its workforce or any other kind of disputes with the company's workforce or its inability to control the composition and cost of the company's workforce could adversely affect its business, cash flows and results of operations.
- Risks Relating to the Business: The company engages contract labour for carrying out certain of its operations and the company is responsible for paying the wages of such workers. If the independent contractors through whom such workers are hired default on their obligations, this could have an adverse effect on its results of operations and financial condition.
- Risks Relating to the Business: Technology failures could disrupt the company operations and adversely affect its business operations and financial performance.
- Risks Relating to the Business: The company import machinery and raw materials from foreign countries and the same is subject to certain risks which may adversely affect its business, results of operations, financial condition and cash flows.
- Risks Relating to the Business: Uncertain and lengthy vendor selection process with the company's customers may have an adverse impact on its business, cash flows, financial conditions and results of operations.
- Risks Relating to the Business: Information relating to the company's annual installed capacity, annual average available capacity, actual production and the capacity utilization of its manufacturing facilities included in this Red Herring Prospectus is based on various assumptions and estimates and future production and capacity utilization may vary.
- Risks Relating to the Business: Under-utilization of the company's manufacturing capacities and an inability to effectively utilize its expanded and proposed manufacturing capacities could have an adverse effect on the company's business, prospects, financial performance and cash flows.
- Risks Relating to the Business: The company's Promoters and members of its Promoter Group will continue to hold a significant equity stake in the Company after the Offer and their interests may differ from those of the other shareholders.
- Risks Relating to the Business: Certain sections of this Red Herring Prospectus disclose information from the CRISIL Report which is a paid report and commissioned and paid for by the company exclusively in connection with the Offer and any reliance on such information for making an investment decision in the Offer is subject to inherent risks.
- Risks Relating to the Business: The company has entered into a joint venture agreement between Vermogensverwaltung Plettenberg GmbH and CO KG along with its group companies ("STP Group"), to establish the company's subsidiary MSIPL under which STP Group holds 49% of the share capital of MSIPL.
- Risks Relating to the Business: The company's ability to access capital at attractive costs depends on its credit ratings. Non-availability of credit ratings or a poor rating may restrict the company's access to capital and thereby adversely affect its business, financial conditions, cash flows and results of operations.
- Risks Relating to the Business: The company may not successfully protect its technical know-how, which may result in the loss of the company's competitive advantage.
- Risks Relating to the Business: A portion of the Net Proceeds may be utilized for repayment or pre-payment of certain loans availed by the Company from ICICI Bank Limited which is an affiliate of ICICI Securities Limited, one of the BRLMs.
- Risks Relating to the Business: The company has in this Red Herring Prospectus included certain non-GAAP financial measures and certain other industry measures related to its operations and financial performance. These non-GAAP measures and industry measures may vary from any standard methodology that is applicable across the powertrains industry, alloys and metallics and therefore may not be comparable with financial or industry related statistical information of similar nomenclature computed and presented by other companies.
- Risks Relating to the Business: The company has issued Equity Shares during the preceding twelve months at a price which may be below the Offer Price.
- Risks Relating to the Business: The Company may not be able to pay dividends in the future. Its ability to pay dividends in the future will depends on the company's earnings, financial condition, working capital requirements, capital expenditures, and restrictive covenants of its financing arrangements.
- Risks Relating to the Business: Significant differences exist between Ind AS and other accounting principles, such as U.S. GAAP and IFRS, which investors may be more familiar with and may consider them material to their assessment of the company's financial condition.
