About Hero Motors IPO
Hero Motors IPO Details
The Hero Motors IPO is a book-built issue worth up to ₹1,000 crore, comprising a fresh issue of ₹600 crore and an offer for sale (OFS) of ₹400 crore, with a face value of ₹10 per share. The company filed its DRHP with SEBI on June 30, 2025.
The price band of the issue is set at between ₹79 to ₹84 per share and the lot size for an application is 178 shares. The minimum amount of investment required by an individual investor is ₹14,952 (178 shares). The IPO will be open for subscription from Sep 16 to 18, 2026, on the BSE and the NSE platforms, with a tentative listing date fixed as Sep 23, 2026.
The book running lead manager (BRLM) for this issue is a team of professionals, comprising ICICI Securities Ltd., DAM Capital Advisors Ltd. and JM Financial Ltd., while KFin Technologies Ltd. is the registrar to the offer.
Hero Motors IPO Date & Timeline
The Hero Motors IPO is officially set to open for subscription on Sep 16, 2026 and will close on Sep 18, 2026. The company initially filed its Draft Red Herring Prospectus (DRHP) on June 30, 2025 and has now finalized its schedule following SEBI approval. Once the subscription window closes, allotment is expected on Sep 21, 2026. Following this, the firm will initiate refunds and credit shares to successful investors' demat accounts on Sep 22, 2026. Finally, shares of Hero Motors Ltd. are tentatively scheduled to list on the stock exchanges on Sep 23, 2026.
Hero Motors IPO Timeline
| IPO Open Date | Wed, Sep 16, 2026 |
| IPO Close Date | Fri, Sep 18, 2026 |
| Tentative Allotment | Mon, Sep 21, 2026 |
| Initiation of Refunds | Tue, Sep 22, 2026 |
| Credit of Shares to Demat | Tue, Sep 22, 2026 |
| Tentative Listing Date | Wed, Sep 23, 2026 |
Hero Motors IPO Details
| Detail | Description |
|---|---|
| IPO Date | 16 to 18 Sep, 2026 |
| Listing Date | 23 Sep, 2026 |
| Face Value | ₹ 10 per share |
| Issue Price Band | ₹ 79 to ₹ 84 |
| Lot Size | 178 Shares |
| IPO Type | Fresh capital cum OFS |
| Total Issue Size | 11,90,47,618 shares (agg. up to ₹ 1,000 Cr) |
| Fresh Issue(Ex Market Maker) | 7,14,28,571 shares (agg. up to ₹ 600 Cr) |
| Offer for Sale | 4,76,19,047 shares of ₹10 (agg. up to ₹ 400 Cr) |
| Issue Type | Bookbuilding IPO |
| Listing At | BSE, NSE |
| Share Holding Pre Issue | 38,27,87,005 shares |
| Share Holding Post Issue | 45,42,15,576 shares |
Hero Motors IPO GMP
“Grey Market Premium” or GMP is defined as the rate at which the IPO's shares are traded in the market before they are officially listed on the stock exchange.
The Hero Motors IPO GMP is currently trading at ₹24, reflecting the sentiment of unofficial investors before the official listing. This premium suggests a potential listing price of ₹108, which is 28.57% above the issue price. While the Grey Market Premium is a key indicator of demand and investor appetite, it is important to remember that GMP is highly volatile and should not be the sole factor in your investment decisions.
IPO Estimated Listing Return
Based on the IPO Price of ₹84 (highest price band), the latest uploaded Grey Market Premium (GMP) of ₹24 and a lot size of 178 shares.
Hero Motors IPO GMP TREND (DAILY UPDATES)
| GMP Date | IPO Price | GMP | Last Updated |
|---|---|---|---|
| 14 Sep 2026 | ₹84 | ₹24 | 14 Sep, 202610:01 AM |
| 13 Sep 2026 | ₹84 | ₹24 | 13 Sep, 202605:34 PM |
| 12 Sep 2026 | ₹84 | ₹10 | 12 Sep, 202611:00 AM |
| 11 Sep, 2026 | ₹84 | ₹8 | 11 Sep, 202601:14 PM |
Company Background
Hero Motors Ltd. was incorporated on April 30, 1998, as a joint venture under the name ‘Hero Briggs & Stratton Auto Private Limited.’ After the completion of the joint venture in 2001, the company was renamed, finally bearing the name Hero Motors Limited in September 2004.
The registered office of the company is located in Ludhiana, Punjab and the corporate office is located in Noida, Uttar Pradesh. The company has, over the years, developed from a local components manufacturer to a highly advanced engineering company with a global presence in Europe and Thailand.
The company has mainly engaged in designing, developing, manufacturing and supplying engineered powertrain solutions to automotive original equipment manufacturers (OEMs) across the United States, Europe, India and ASEAN region.
Operations & Product Range
Hero Motors Ltd. operates as a leading manufacturer of powertrain solutions and precision-engineered components in the market. Its core business serves 2 primary segments: internal combustion engines (ICE) and the rapidly growing electric vehicle (EV) market. Key products and solutions include:
- EV Powertrain Solutions: Customized drive units and motors for electric two-wheelers and three-wheelers.
- Transmission Components: High-precision gears, shafts and assemblies for global automotive manufacturers.
- E-Bike Hub Motors: Via its subsidiary HYM Drive Systems, produces motors exclusively for the global e-bike market.
- Chassis and Frames: Components for different vehicle segments.
Facilities & Capacity
Hero Motors Ltd. maintains a strong manufacturing infrastructure both in India and overseas, with specialized subsidiaries of this company in Hewland Engineering (UK) and HYM Drive Systems (India). Key operational locations include:
- Domestic Plants: Large manufacturing plants in Ludhiana (Punjab), Ghaziabad (Uttar Pradesh) and Kanchipuram (Tamil Nadu).
- International Presence: Large manufacturing and engineering facilities in the United Kingdom and Thailand.
Brands & Market Presence
Hero Motors Ltd. is known for its global supply chain for high-end motorcycles and e-bikes. Its "AEW" and "Hewland" brands are recognised as leaders in high-performance transmission solutions.
The company is highly export-orientated, with a substantial chunk of its revenues coming from exports, mainly from Europe and the United Kingdom. It has several international certifications, such as IATF 16949, for quality management systems, making it a preferred Tier-1 supplier to luxury car manufacturers across the globe.
Revenue Streams & Business Model
Hero Motors Ltd. operates a fully integrated, design-led manufacturing business model, delivering custom-engineered powertrain solutions to global OEMs across the electric and non-electric mobility segments.
The firm generates revenue primarily through the manufacture and export of high-performance transmission systems, gears, continuously variable transmissions and integrated drive units for two-wheelers, e-bikes, performance sports cars and aerospace applications. Additional income flows from value-added engineering, rapid prototyping, component validation services and long-term joint ventures with international technology partners.
Financial Performance
Hero Motors Ltd. has demonstrated consistent revenue growth in recent years, with total income expanding ₹1,111.23 crore in FY25, and reaching ₹1,216.74 crore in FY26. The company maintains a globally diversified client base, delivering high-performance transmission and powertrain systems across North America, Europe, and Asia. While steady top-line expansion highlights strong market demand, elevated borrowing levels remain a key financial area to monitor as the firm scales its manufacturing footprint.
Management & Shareholding
Hero Motors Ltd. is promoted by members of the Munjal family, with Pankaj Munjal, Charu Munjal, Aditya Munjal and Abhishek Munjal identified as nominees in the shareholding structure. Before the IPO, the promoters held an 84.67% stake of the paid-up equity share capital. After the IPO, promoter shareholding will be diluted and down to a 61.63% stake, as the offering includes 7,14,28,571 shares as a fresh issue and 4,76,19,047 shares as offer for sale by the existing shareholders.
Board & Key Management
The leadership of Hero Motors Ltd. is led by a team of experts with many years of experience. Pankaj Munja serves as the Chairman and gives strategic direction to the firm. The daily operations are managed by Amit Gupta, the Managing Director, along with Whole-Time Director Abhishek Munjal. To ensure good governance, the board includes Independent Directors Kulbir Singh, Keshav Misra, Pratibha Goyal, Jyoti Arora, Ashok Kumar Taneja and Andrew Charles Palmer for honest oversight. Together, this team uses its knowledge to help the company grow and stay successful.
Hero Motors IPO Financial Information
Latest Revenue
₹ 1,188.35 Cr
Profit After Tax
₹ 41.17 Cr
Net Worth
₹ 482.45 Cr
Total Borrowing
₹ 400.79 Cr
| Period Ended | Assets | Revenue | Profit (PAT) | Net Worth | Reserves | Borrowing |
|---|---|---|---|---|---|---|
| 31 Mar 2026 | 1,371.83 | 1,188.35 | 41.17 | 482.45 | 116.32 | 400.79 |
| 31 Mar 2025 | 1,164.62 | 1,089.59 | 32.80 | 423.95 | 67.71 | 407.62 |
| 31 Mar 2024 | 1,059.86 | 1,064.39 | 17.04 | 385.44 | 710.88 | 304.00 |
| Amount in ₹ Crore | ||||||
Hero Motors Key Performance Indicator
| KPI | Values(31 Mar 2026) |
|---|---|
| ROE | 8.56 % |
| ROCE | 19.77 % |
| Debt/Equity | 0.83 |
| RoNW | 8.53 % |
| PAT Margin | 3.46 % |
| EBITDA Margin | 12.44 % |
| Price to Book Value | 6.60 |
| Pre IPO | Post IPO | |
|---|---|---|
| EPS (Rs) | 1.08 | 0.91 |
| P/E (x) | 77.78 | 92.31 |
Hero Motors IPO Objectives
The company plans to utilize the net proceeds from the fresh issue of the Hero Motors IPO for the following specific goals:
- • Repayment/Prepayment of debt (in part or in full)
- • Investment in the purchase of equipment required for expansion in capacity for the existing plant in Uttar Pradesh.
- • General Corporate Purposes
Hero Motors IPO Review
Hero Motors Ltd. operates as an automotive technology firm specializing in designing, engineering, and manufacturing powertrain solutions, gears, and transmission components. The business caters to high-growth segments, including electric vehicles (EVs), premium motorcycles, e-bikes, and off-highway vehicles, serving premier global and domestic original equipment manufacturers (OEMs).
Financially, the company has shown growing and profitable statements. As of FY26, revenue was reported at ₹1,188.3 crore, profit after tax (PAT) was at ₹41.17 crore and EBITDA was at ₹147.78 crore. Notably, the revenue was increased by 9% and PAT was increased by 26% between FY25 and FY26.
However, the key strengths include strong promoter lineage, long-standing relationships with leading global OEMs, and an expanding presence in the high-margin EV component value chain. Conversely, risks involve revenue concentration among key customers, vulnerability to raw material cost fluctuations, and foreign exchange exposure across its export markets.
Hero Motors offers strong long-term growth potential backed by robust manufacturing and EV market exposure, though investors must monitor customer concentration and ongoing margin pressures.
Conclusion
The Hero Motors IPO provides an opportunity to invest in an entity that is successfully bridging the gap between traditional automotive engineering and the new-age EV revolution with its high-margin products, strong global client base and strong financial performance. With this issue, the company mainly aims to restructuring its balance sheet and entering the international market with the execution in the global e-bike and EV market.
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Competitive Strengths
Diversified group structure with subsidiaries spread across India and international markets.
Presence in the auto components manufacturing industry since 1998.
Management team with experience in handling operations and growth plans.
Registered and corporate offices are strategically located in major industrial centers of North India.
Download regulatory filings
IPO Lot Size
| Investors | No.of lots | Shares Offered | Max Bid Amount |
|---|---|---|---|
| Individual investors (Retail) (Min) | 1 | 178 | 14,952 |
| Individual investors (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 |