Hero Motors Limited has submitted its report on the utilization of Initial Public Offering (IPO) proceeds for the quarter ended September 30, 2026. The report, prepared by CARE Ratings Limited, indicates that unutilized IPO proceeds amounting to Rs. 0.16 crore were parked in an Overdraft Account with Kotak Bank, which was noted as not strictly per the offer document but was subsequently utilized towards repayment of a loan. The company’s Audit Committee and Board of Directors have reviewed and taken this report on record.
Hero Motors Submits Q2 FY27 IPO Proceeds Utilization Report
Hero Motors Limited has officially submitted its Monitoring Agency Report, detailing the utilization of funds raised through its Initial Public Offering (IPO). This report covers the financial quarter ending September 30, 2026, as mandated by SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Key Findings from CARE Ratings
The report, prepared by CARE Ratings Limited, highlights that the unutilized IPO proceeds have been parked in an Overdraft Account of Kotak Mahindra Bank. While this was noted as not strictly in line with the offer document, the amount of Rs. 0.16 crore parked in this account was subsequently utilized towards the repayment of a loan. CARE Ratings has classified this deviation from the objects as ‘Not material’.
Details of Utilisation
As per the details provided, the total IPO proceeds of Rs. 600 crore were allocated across several key objects:
- Repayment/prepayment/redemption of outstanding borrowings: Rs. 189.84 crore was spent towards this object.
- Capital expenditure for expansion: No utilization was reported for this object in Q2 FY27.
- Funding inorganic growth and general corporate purposes: Rs. 27.00 crore was spent for general corporate purposes, specifically for bill discounting to vendors.
- Offer-related expenses: No utilization was reported for this object in Q2 FY27.
The total unutilized amount at the end of the quarter stood at Rs. 383.16 crore.
Deployment of Unutilized Proceeds
The unutilized proceeds have been invested in various instruments, primarily in Fixed Deposits with HDFC Bank and Kotak Bank, totaling Rs. 344.45 crore. The remaining unutilized proceeds are held in an Overdraft Account with Kotak Mahindra Bank (Rs. 0.16 crore), Balance in Axis Bank Monitoring Account (Rs. 0.01 crore), and Balance in Axis Bank Public Offer Account (Rs. 38.54 crore).
Board Review and Records
The Monitoring Agency Report has been reviewed by the Audit Committee and subsequently taken on record by the Board of Directors of Hero Motors Limited at its meetings held on November 14, 2026.
Source: BSE
