Mumbai, Oct 7 (IANS): Automotive company Hero Motors on Monday withdrew its Rs 900 crore draft initial public offering (IPO) papers filed with the Securities and Exchange Board of India (SEBI).

Hero Motors had filed preliminary papers with the markets regulator to sell shares worth Rs 900 crore through a public issue. It was a combination of fresh shares worth Rs 500 crore and an offer for sale (OFS) at Rs 400 crore.

The company’s promoters, Pankaj Munjal and Bhagyoday Investments Pvt Ltd, were supposed to offload their equity shares, along with Hero Cycles Ltd. through the OFS mode.

As per reports, Hero Motors was likely to use funds towards the repayment of certain outstanding borrowings, purchasing equipment required for the expansion of their facility in Uttar Pradesh and funding the working capital requirements.

Hero Motors is the automotive flagship company of the Hero Group that manufactures two-wheelers and bicycles. The company had filed preliminary IPO papers with the regulator on August 23.

Meanwhile, the capital market regulator approved Hyundai Motor India’s Rs 25,000 crore IPO that will open on October 14 for subscription.

This would be the largest IPO of India after LIC, which was around Rs 21,000 crore. However, no decision has been made yet regarding the price band.

The entire IPO of Hyundai Motor India will be an offer for sale (OFS). The company will sell 14.2 crore shares, which is around 17.5 per cent of the total shareholding.

After the listing, Hyundai India's market cap could be almost half the valuation of its Seoul-listed promoter company Hyundai Motors at $47 billion.

Hyundai India is the second largest car company in the country after Maruti Suzuki. The company's market share is around 15 per cent. Nearly one in four Hyundai cars is sold in India now.

The automaker registered total sales of 64,201 units in September, with achieving total sales in the nine months (January-September period) of 5,77,711 units.