Raajmarg Infra Investment Trust IPO...
05 Mar, 2026
Hero Motors IPO
The Hero Motors IPO is a book-built issue, offering a total issue size of ₹1,200 crore, comprising a fresh issue of ₹800 crore and an offer for sale of ₹400 crore. The company filed its DRHP with SEBI on June 30, 2025.
The price band and dates of subscription and listing will be announced by the company later, along with the equity shares are expected to be listed on the BSE and NSE stock exchanges. 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.
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.
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 recognized as leaders in high-performance transmission solutions.
The company is highly export-oriented, 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
The primary source of funding for Hero Motors Ltd. is through the sale of precision automotive components and powertrain systems. For the 9 months ending December 31, 2024, the revenue from operations for the company was ₹807.56 Cr. The business model is gradually moving towards high-value EV components. During the period from Fiscal 2023 to Fiscal 2025, the revenue from operations of the company has grown at a CAGR of 109.76%, which is a remarkable growth pattern driven by both domestic and export sales.
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 and promoter group held a significant majority of the paid-up equity share capital. After the offer, this shareholding will be diluted due to the issuance of fresh shares and the offer for sale.
Board & Key Management
The Board of Directors of Hero Motors Ltd. consists of both executive and independent directors, making it a strongly governed company. The key management personnel of this company are the CEO & MD Amit Gupta, who is bringing leadership to the company’s strategy; (Whole Time Director) Abhishek Munjal; CFO Utkarsh Sanghi and CS Esha Gupta. The Board of Directors also consists of independent directors like Pratibha Goyal.
WHAT IS GMP?
GMP (Grey Market Premium) is the difference between the IPO price and the grey market price. It is the premium amount paid for the traded IPO shares. It plays an important role in IPOs as it reflects how the IPO would react on the listing day.
A grey market is a place where shares/stocks are traded before being listed officially on the stock exchange.
Hero Motors IPO GMP
| GMP Date | IPO Price | GMP | Last Updated |
|---|---|---|---|
| - | - | - | - |
**The GMP prices displayed here are solely for informational purposes related to the grey market news. India IPO does not engage in or facilitate grey market trading, nor are these rates (sub2) indicative of any trading activity. We also do not recommend or endorse participation in the grey market.**
Hero Motors IPO Details
| Detail | Description |
|---|---|
| IPO Date | - |
| Listing Date | - |
| Face Value | ₹10 per share |
| Issue Price Band | - |
| Lot Size | - |
| Sale Type | Fresh Capital & OFS |
| Total Issue Size | [.] shares (agg. up to ₹1,200 Cr) |
| Reserved for Market Maker | - |
| Fresh Issue(Ex Market Maker) | [.] shares (agg. up to ₹800 Cr) |
| Offer for Sale | [.] shares of ₹10 (agg. up to ₹400 Cr) |
| Net Offered to Public | - |
| Issue Type | Bookbuilding IPO |
| Listing At | BSE, NSE |
| Share Holding Pre Issue | 35,83,36,019 shares |
| Share Holding Post Issue | - |
Hero Motors IPO Timeline
| Detail | Description |
|---|---|
| IPO Open Date | - |
| IPO Close Date | - |
| Tentative Allotment | - |
| Initiation of Refunds | - |
| Credit of Shares to Demat | - |
| Tentative Listing Date | - |
| Cut-off time for UPI mandate confirmation | 5:00 PM on the Bid/Offer Closing Date |
Hero Motors IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Individual investors (Retail) (Min) | 1 | - | ~₹14,000 - ₹15,000 |
| Individual investors (Retail) (Max) | 13-14 | - | Up to ₹2,00,000 |
| S-HNI (Min) | 14-15 | - | Over ₹2,00,000 |
| S-HNI (Max) | 66-70 | - | Up to ₹10,00,000 |
| B-HNI (Min) | 71+ | - | Over ₹10,00,000 |
Hero Motors IPO Promoter Holding
| Share Holding Pre Issue | Share Holding Post Issue |
|---|---|
| Promoter Holding Pre Issue | 91.41% |
| Promoter Holding Post Issue | - |
Competitive Strength:
- • 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.
Hero Motors IPO Financial Information
| Period Ended | Assets | Total Income | Profit After Tax | Net Worth | Reserves and Surplus | Total Borrowing | ||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 31 Dec 2024 | 1,177.79 | 823.80 | 823.80 | 412.01 | 745.72 | 374.00 | ||||||||||||||||||||||||||||||||||
| 31 Mar 2024 | 1,059.86 | 1,083.42 | 17.04 | 385.44 | 710.88 | 304.00 | ||||||||||||||||||||||||||||||||||
| 31 Mar 2023 | 992.02 | 1,070.00 | 40.51 | 344.47 | 709.37 | 269.61 | ||||||||||||||||||||||||||||||||||
| 31 Mar 2022 | 703.13 | 921.15 | 99.02 | 159.11 | 124.51 | 265.39 | ||||||||||||||||||||||||||||||||||
| Amount in ₹ Crore | ||||||||||||||||||||||||||||||||||||||||
Key Performance Indicator
| KPI | Values |
|---|---|
| ROE | 4.54% |
| ROCE | 22.59% |
| Debt/Equity | - |
| RoNW | 4.42% |
| PAT Margin | 1.60% |
| EBITDA Margin | 7.78% |
| Price to Book Value | - |
| Pre IPO | Post IPO | |
|---|---|---|
| EPS (Rs) | 0.48 | 0.45 |
| P/E (x) |
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 of debt (in part or in full)
- • Funding the capital expenditure for the setup of a new facility in Thailand
- • Investment in the purchase of machinery for the existing plant in Uttar Pradesh.
- • General Corporate Purposes
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. This issue will help in restructuring its balance sheet and entering the international market with the execution in the global e-bike and EV market.
IPO DRHP Status
| # | Description | Date | File |
|---|---|---|---|
| 1 | Filed with SEBI/Exchange | 30-06-2025 | View DRHP |
| 2 | SEBI/Exchange approval received | 12-09-2025 | - |
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Frequently Asked Questions (FAQs)
-
What is the total size of the Hero Motors IPO?
The total issue size is up to ₹1200 crore, comprising a fresh issue of ₹800 crore and an offer for sale of ₹400 crore.
-
Who are the main promoters of Hero Motors Ltd.?
The company is promoted by Pankaj Munjal, Charu Munjal, Abhishek Munjal and O.P Munjal Holdings.
-
Where will the proceeds from the Hero Motors IPO be used?
The funds will be used for debt repayment, setting up a new manufacturing facility in Thailand and general corporate purposes.
-
What is the face value of the shares in the Hero Motors IPO?
The face value of each equity share is ₹10.
-
Who are the lead managers for the Hero Motors IPO?
The issue is being managed by ICICI Securities Limited, DAM Capital Advisors Limited and JM Financial Limited.
-
On which exchanges will the Hero Motors IPO list?
The company proposes to list its equity shares on both the BSE and the NSE.
