Hero Motors IPO
Hero Motors IPO is a mainboard book-building public issue with a total issue size of approximately ₹1,000 crore.
The issue consists of a fresh issue of approximately 7.14 crore equity shares aggregating to around ₹600 crore and an offer for sale of approximately 4.76 crore shares worth around ₹400 crore.
The IPO will open for subscription on 16 September 2026 and close on 18 September 2026. Hero Motors shares are proposed to be listed on both NSE and BSE.
Hero Motors IPO Details
Hero Motors Limited is coming to the primary market with a ₹1,000 crore mainboard IPO. The issue combines a fresh issue of shares with an offer for sale by existing shareholders.
The fresh issue consists of approximately 7.14 crore shares aggregating to around ₹600 crore. The company intends to use the fresh capital for debt reduction, capacity expansion and other strategic purposes.
The offer for sale comprises approximately 4.76 crore shares aggregating to around ₹400 crore. The OFS proceeds will go to the respective selling shareholders.
The IPO price band has been fixed at ₹79 to ₹84 per share. Investors can apply for a minimum of 178 shares and thereafter in multiples of the specified lot size.
At the upper price band of ₹84 per share, one retail investor needs ₹14,952 to apply for one lot.
Hero Motors IPO Details
| Particulars | Details |
|---|---|
| IPO Open Date | 16 September 2026 |
| IPO Close Date | 18 September 2026 |
| IPO Size | ₹1,000 Crore |
| Price Band | ₹79 to ₹84 per share |
| Face Value | ₹10 per share |
| Lot Size | 178 Shares |
| Issue Type | Book Building |
| Issue Structure | Fresh Issue + Offer for Sale |
| Listing Exchange | NSE and BSE |
| Market Cap at Upper Band | ₹3,815.41 Crore |
| Expected Allotment | 21 September 2026 |
| Refund / Unblocking | 22 September 2026 |
| Demat Credit | 22 September 2026 |
| Tentative Listing Date | 23 September 2026 |
Hero Motors IPO Issue Size
| Issue Component | Shares | Approx. Amount |
|---|---|---|
| Total Issue | 11,90,47,618 | Up to ₹1,000 Cr |
| Fresh Issue | 7,14,28,571 | Up to ₹600 Cr |
| Offer for Sale | 4,76,19,047 | Up to ₹400 Cr |
Hero Motors IPO Timeline
| Event | Date |
|---|---|
| IPO Opens | Wednesday, 16 September 2026 |
| IPO Closes | Friday, 18 September 2026 |
| Allotment | Monday, 21 September 2026 |
| Refund / Unblocking | Tuesday, 22 September 2026 |
| Shares Credited to Demat | Tuesday, 22 September 2026 |
| Listing | Wednesday, 23 September 2026 |
Hero Motors IPO Reservation
| Investor Category | Reservation |
|---|---|
| Qualified Institutional Buyers (QIB) | Not more than 50% of the Net Offer |
| Retail Individual Investors | Not less than 35% of the Net Offer |
| Non-Institutional Investors (NII) | Not less than 15% of the Net Offer |
Hero Motors IPO Lot Size
Investors can bid for a minimum of 178 shares and thereafter in multiples of 178 shares.
| Investor Category | Lots | Shares | Investment at ₹84 |
|---|---|---|---|
| Retail Minimum | 1 | 178 | ₹14,952 |
| Retail Maximum | 13 | 2,314 | ₹1,94,376 |
| S-HNI Minimum | 14 | 2,492 | ₹2,09,328 |
| S-HNI Maximum | 66 | 11,748 | ₹9,86,832 |
| B-HNI Minimum | 67 | 11,926 | ₹10,01,784 |
About Hero Motors Ltd.
Incorporated in April 1998, Hero Motors Limited is an automotive technology company that develops, manufactures and supplies engineered powertrain solutions to automotive OEMs across India, the United States, Europe and the ASEAN region.
The company’s products cover both electric and non-electric powertrain applications across two-wheelers, performance vehicles, e-bikes, off-road vehicles, electric and hybrid cars, heavy-duty vehicles and eVTOL applications.
Hero Motors provides system-level as well as component-level solutions, including product design, prototyping, validation, development and manufacturing.
Its technology portfolio includes CVT systems, EV transmissions, electric motors, integrated drive units and gear sets.
The company also has a significant position in the global e-bike powertrain market and manufactures and exports CVT hubs and integrated electric powertrain products for e-bikes.
Hero Motors operates through two primary segments: Powertrain Solutions and Alloys and Metallics (A&M).
Its customer relationships include global names such as BMW, Ducati, enviolo, Formula Motorsport, Hummingbird EV and HWA, along with various international e-bike manufacturers.
As of 31 March 2026, the company had 1,388 permanent employees and 707 contract labourers.
Hero Motors Business Strengths
- Strong in-house research, development and engineering capabilities.
- Long-standing relationships with global automotive OEM customers.
- Exposure to the growing electric mobility and e-bike markets.
- Diversified product portfolio covering electric and conventional powertrain technologies.
- Presence across multiple automotive and mobility applications.
- Established expertise in CVT, EV transmission and electric powertrain technologies.
- International customer base across India, Europe, the US and ASEAN.
- Experienced management team and established automotive industry relationships.
Hero Motors IPO Objects of the Issue
The company plans to deploy the net proceeds from the fresh issue towards debt reduction, capacity expansion and strategic business initiatives.
| Use of Funds | Amount |
|---|---|
| Repayment / Prepayment / Redemption of Certain Borrowings | ₹190 Crore |
| Capital Expenditure for Equipment and Capacity Expansion at Gautam Buddha Nagar Facility, Uttar Pradesh | ₹200 Crore |
| Inorganic Growth, Strategic Initiatives and General Corporate Purposes | Balance Amount |
| Total Identified Uses | ₹390 Crore |
Hero Motors Financial Performance
Hero Motors reported improvement in its recent financial performance. Revenue increased by approximately 9% between FY2025 and FY2026, while profit after tax grew by approximately 26%.
| Particulars (₹ Crore) | FY2026 | FY2025 | FY2024 |
|---|---|---|---|
| Assets | 1,371.83 | 1,164.62 | 1,059.86 |
| Total Income | 1,216.74 | 1,111.23 | 1,083.42 |
| Profit After Tax | 41.17 | 32.80 | 17.04 |
| EBITDA | 147.78 | 114.00 | 86.28 |
| Net Worth | 482.45 | 423.95 | 385.44 |
| Reserves & Surplus | 116.32 | 67.71 | 32.26 |
| Total Borrowings | 400.79 | 407.62 | 304.00 |
Note: Financial figures are presented in ₹ crore as reported in the company’s restated financial information.
Hero Motors IPO Key Performance Indicators
| KPI | 31 March 2026 |
|---|---|
| ROE | 8.56% |
| ROCE | 19.77% |
| Debt / Equity | 0.83 |
| RoNW | 8.53% |
| PAT Margin | 3.46% |
| EBITDA Margin | 12.44% |
| NAV | ₹12.72 |
| Price to Book Value | 6.60x |
Hero Motors IPO Valuation
At the upper IPO price of ₹84 per share, Hero Motors is valued at an estimated post-issue market capitalization of approximately ₹3,815.41 crore.
Based on the reported post-issue earnings figures, the IPO carries a relatively high valuation multiple. Investors should compare the company’s profitability, growth prospects and valuation with listed automotive component and powertrain companies before making an investment decision.
| Valuation Metric | Pre-IPO | Post-IPO |
|---|---|---|
| EPS | ₹1.08 | ₹0.91 |
| P/E | 77.78x | 92.31x |
| Market Capitalisation | ₹3,215.41 Cr | ₹3,815.41 Cr |
Hero Motors Shareholding Pattern
| Category | Pre-IPO | Post-IPO |
|---|---|---|
| Promoter & Promoter Group | 84.67% | 61.63% |
| Public | 15.33% | 38.37% |
| Total | 100% | 100% |
Company Promoters: Pankaj Munjal, Charu Munjal, Abhishek Munjal and O P Munjal Holdings.
Hero Motors IPO Offer for Sale
The OFS portion consists of approximately 4.76 crore shares. The money raised through this portion will be received by the selling shareholders rather than the company.
| Selling Shareholder | Category | Shares Offered | Amount |
|---|---|---|---|
| O.P. Munjal Holdings | Promoter | 4,70,23,809 | ₹395 Cr |
| Hero Cycles Ltd. | Promoter | 5,95,238 | ₹5 Cr |
| Total OFS | 4,76,19,047 | ₹400 Cr |
Hero Motors IPO Pros and Cons
Potential Positives
- Established automotive technology and powertrain business.
- Long-term relationships with global OEMs.
- Exposure to EV and e-bike powertrain growth.
- Diversified products and applications.
- Fresh IPO proceeds will support debt reduction and capacity expansion.
- Strong engineering and R&D capabilities.
Key Risks
- IPO valuation is relatively high compared with current earnings.
- PAT margin remains comparatively low at 3.46%.
- The company carries significant borrowings.
- Automotive demand and OEM production cycles can affect business.
- The company operates in highly competitive automotive and electric-mobility markets.
- Future performance depends partly on the adoption of new powertrain and EV technologies.
Hero Motors IPO Registrar & Lead Managers
IPO Registrar: Kfin Technologies Ltd.
Book Running Lead Managers:
- ICICI Securities Ltd.
- Dam Capital Advisors Ltd.
- JM Financial Ltd.
Hero Motors Ltd. Contact Details
Registered Office:
Hero Nagar,
GT Road,
Ludhiana,
Punjab – 141003
Phone: +91 120441200
Email: investorrelations@heromotors.com
Hero Motors IPO Quick Summary
Hero Motors IPO is a mainboard public issue of approximately ₹1,000 crore. The IPO opens on 16 September 2026 and closes on 18 September 2026.
The IPO price band is fixed at ₹79 to ₹84 per share, while the minimum lot size is 178 shares. At the upper price band, one retail lot requires an investment of ₹14,952.
The issue includes a fresh issue of approximately ₹600 crore and an offer for sale of approximately ₹400 crore.
Hero Motors is an automotive technology company focused on engineered powertrain solutions for electric and non-electric vehicles. The company serves OEM customers across India, Europe, the US and ASEAN markets.
The fresh issue proceeds are planned for debt reduction, capacity expansion and strategic business requirements, while the OFS proceeds will go to the selling shareholders.
Hero Motors IPO FAQs
Disclaimer
This Hero Motors IPO information is provided solely for educational and informational purposes. IPO investments are subject to market risks, and actual listing performance may differ from expectations. Investors should carefully review the company’s RHP, financial statements, risk factors and other official disclosures before making any investment decision. TradingMinds does not provide investment advice or guarantee IPO listing gains.
