Hero Electric IPO: CEO Sohinder Gill reveals listing plans; check details

To achieve its target of 2 million vehicle sales in the next three-five years, Hero Electric is reportedly planning to launch its IPO by 2025-26. The company is planning to get listed on the Indian bourses in the next two years, the CEO of Hero Electric, Sohinder Gill told the Business Standard.

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To raise funds to expand its capital expenditure, the company is looking to raise funds from both equity and debt sources, reported the business daily quoting the company CEO. Sohinder Gill also said that, before going public by the end of 2025-26, the company aims to expand its market share to 2 million as he considers it the right time to launch an IPO.

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To achieve the targeted market share, the company is relying upon a capital expenditure business type model in business, products and fundraising.

₹2,000 crore fundraise

The company planned to raise funds worth ₹2,000 crore by September 2023. But, considering the ongoing localisation probe by the Ministry of Heavy Industries, the company has extended the deadline to year-end. The move will prevent undervaluation of the company in the current scenario.

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Till now, the company has managed to raise ₹380 crore in funding. The company raised around ₹180 crore in its first-ever funding round in 2018.

Currently, Hero Electric, with more than 10 EV players, is facing the Indian government's scrutiny for its alleged misuse of subsidies given under the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme. In April, the government in its report said that imported parts were used extensively in the manufacturing of EVs by these companies. 

This was a clear violation of the PMP rules under FAME scheme. Then, Hero and Okinawa Scooters were asked to repay around ₹130 crore of subsidy amount they had received since 2019. The companies were also barred from FAME incentives.

The Hero Electric CEO also said in the interview that the company “might think of taking the amount as a liability if worse comes to worst.”

Other companies that came under the central government's radar were Benling, Okaya, Jitendra New EV, Greaves Electric Mobility, Revolt Intellicorp, Kinetic Green Energy, Avon Cycles, Lohia Auto, Thukral Electric & Victory Electric, etc.