About Hero Motors IPO
Hero Motors Limited, the automotive flagship of the Hero Group, opens its IPO for public subscription from September 16, 2026, to September 18, 20,26 at a price band of ₹79 to ₹84 per equity share of face value ₹10.
The IPO is a book-built issue of ₹1,000.00 crore, comprising 11,90,47,618 equity shares. It is a fresh issue of 7,14,28,571 shares worth ₹600.00 crore and an offer for sale of 4,76,19,047 shares worth ₹400.00 crore.
Hero Motors: IPO Date, Price, and Other Details
Here are the details of the upcoming Hero Motors IPO:
| Particular | Detail |
|---|---|
| Issue Size | ₹1,000.00 crore (11,90,47,618 equity shares) |
| Offer Type | Book-built issue (fresh capital cum OFS) |
| Fresh Issue | 7,14,28,571 shares (₹600.00 crore) |
| Offer for Sale | 4,76,19,047 shares (₹400.00 crore) |
| Face Value | ₹10 per equity share |
| Price Band | ₹79 to ₹84 per share |
| IPO Open Date | September 16, 2026 |
| IPO Close Date | September 18, 2026 |
| Basis of Allotment | September 21, 2026 |
| Credit to Demat Account | September 22, 2026 |
| Listing Date | September 23, 2026 |
| Lot Size | 178 shares |
| Minimum Investment (Retail) | ₹14,952 |
| Market Capitalisation (upper band) | ₹3,815.41 crore |
| Book Running Lead Managers | ICICI Securities Ltd.; DAM Capital Advisors Ltd.; JM Financial Ltd. |
| Registrar | Kfin Technologies Ltd. |
| Listing Exchanges | BSE, NSE |
Business Overview of Hero Motors
Hero Motors Limited was incorporated in April 1998 and is an automotive technology company engaged in Designing, Developing, Manufacturing and Supplying engineered powertrain solutions to automotive original equipment manufacturers across the United States, Europe, India, and the ASEAN region.
Hero Motors Limited supplies automotive original equipment manufacturers in the United States, Europe, India and the ASEAN region.
The company is led by Pankaj Munjal and operates through two business segments: Powertrain Solutions, covering gearboxes and transmission assemblies, and Alloys and Metallics, covering special materials for various vehicle types.
Key Strengths of Hero Motors IPO:
| Key Detail | IPO-Relevant Highlight |
| Core Business | Powertrain solutions and alloys & metallics |
| Product Portfolio | CVTs, EV transmissions, electric motors, integrated drive units and gear sets |
| Key Customers | BMW, Ducati, Enviolo, Hummingbird EV, and HWA |
| Market Position |
|
| End Markets | Two-wheelers, e-bikes, EVs, hybrids, off-road and heavy-duty vehicles |
| Geographic Reach | US, Europe, India and ASEAN |
| Key Differentiator | Integrated powertrain capabilities spanning design, development, validation and delivery |
Lot Size and Application Amounts of Hero Motors IPO
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 178 | ₹14,952 |
| Retail (Max) | 13 | 2,314 | ₹1,94,376 |
| S-HNI (Min) | 14 | 2,492 | ₹2,09,328 |
| S-HNI (Max) | 66 | 11,748 | ₹9,86,832 |
| B-HNI (Min) | 67 | 11,926 | ₹10,01,784 |
Who are Selling Shareholders in the OFS of Hero Motors?
Under the original structure, O P Munjal Holdings was to offer ₹390 crore, with ₹5 crore each from Bhagyoday Investments and Hero Cycles.
Bhagyoday Investments has since withdrawn entirely, and O P Munjal Holdings increased its offer to ₹395 crore to keep the total at ₹400 crore.
| Name | Amount (₹ crore) |
|---|---|
| O P Munjal Holdings | 395.00 |
| Hero Cycles Ltd. | 5.00 |
| Total | 400.00 |
Hero Motors IPO Reservation: Who Can Apply?
The Hero Motors IPO has the following investor category reservation:
| Investor Category | Portion of Offer |
|---|---|
| Qualified Institutional Buyers (QIB) | 50% |
| Retail Individual Investors | 35% |
| Non-Institutional Investors (NII) | 15% |
Risks of Hero Motors IPO
As per the RHP, here are certain risks noticeable in the Hero Motors IPO:
- Demanding valuation. Post-issue P/E is 92.31, and price to book 6.60, against listed auto-component peers largely in the 28 to 41 P/E range.
- Low return ratios. ROE of 8.56% and RoNW of 8.53% in FY2026, modest for the multiple being sought.
- Thin net margin of 3.46%, low for a tier-one component supplier, and only 1.6% as recently as FY2024.
- Substantial borrowings of ₹400.79 crore with debt to equity at 0.83. The ₹190 crore repayment covers roughly half the base.
- Europe concentration, contributing between 26% and 32% of revenue from operations, exposes the business to European vehicle production cycles, and currency movements.
- ₹400 crore of the issue is a promoter sale by O.P. Munjal Holdings and Hero Cycles, and does not come to the company.
- The issue size has been revised twice, from ₹900 crore to ₹1,200 crore and down to ₹1,000 crore, with the fresh issue cut by ₹200 crore.
- A selling shareholder, Bhagyoday Investments, exited the offer for sale entirely.
- ₹400.00 crore of the issue is a shareholder sale and does not come to the company.
- Customer concentration typical of a tier-one auto component supplier, where a small number of OEM relationships drive revenue.
- Exposure to the internal combustion transition, where demand for conventional powertrain components faces long-term structural change.
- Currency and multi-jurisdiction risk across manufacturing operations in India, the United Kingdom and Thailand.
IPO Objectives – How Will the Funds Be Used?
Hero Motors will utilise the net proceeds of the fresh issue towards:
| # | Issue Objects | Est. Amount (₹ crore) |
|---|---|---|
| 1 | Repayment or prepayment, in full or in part, of certain outstanding borrowings availed by the Company | 190.00 |
| 2 | Capital expenditure through purchase of equipment required for capacity expansion at the Gautam Buddha Nagar, Uttar Pradesh facility | 200.00 |
| 3 | Funding inorganic growth through unidentified acquisitions and other strategic initiatives, and general corporate purposes | Balance |
Promoter Shareholding of Hero Motors
The promoters of Hero Motors Limited are Pankaj Munjal, Charu Munjal, Abhishek Munjal and O P Munjal Holdings.
| Category | Pre-IPO |
|---|---|
| Promoter and Promoter Group | 84.67% |
| Public | 15.33% |
| Total | 100% |
Financial Performance of Hero Motors (Restated, ₹ in crores)
Here's the table outlining the financial performance of Hero Motors Limited from FY 2024 to FY 2026.
| Period Ended | 31 Mar 2026 | 31 Mar 2025 | 31 Mar 2024 |
|---|---|---|---|
| Total Income | 1,216.74 | 1,111.23 | 1,083.42 |
| EBITDA | 147.78 | 114.00 | 86.28 |
| Profit After Tax | 41.17 | 32.80 | 17.04 |
| Net Worth | 482.45 | 423.95 | 385.44 |
| Reserves and Surplus | 116.32 | 67.71 | 32.26 |
| Total Borrowing | 400.79 | 407.62 | 304.00 |
| Assets | 1,371.83 | 1,164.62 | 1,059.86 |
Key Performance Indicators of Hero Motors
Based on the financials available in the RHP, the following key performance metrics of Hero Motors IPO can be considered.
| KPI | As of FY 2026 | FY 2025 |
|---|---|---|
| Return on Equity (ROE) | 8.56% | 7.70% |
| Return on Capital Employed (ROCE) | 19.77% | 18.84% |
| Debt / Equity | 0.83 | 0.96 |
| PAT Margin | 3.46% | 3.01% |
| EBITDA Margin | 12.44% | 10.46% |
| Net Asset Value (NAV) | ₹12.72 | ₹11.21 |
Registrar of Hero Motors IPO
The Registrar of Hero Motors IPO is Kfin Technologies Ltd.
Phone: 040-79615565
Email: heromotors.ipo@kfintech.com
Allotment status: https://ipostatus.kfintech.com/
Lead Managers of Hero Motors IPO
ICICI Securities Ltd., DAM Capital Advisors Ltd. and JM Financial Ltd. are the book-running lead managers to the Hero Motors IPO.
