Hero Motors IPO Overview
Hero Motors Limited is bringing a main-board book-built Initial Public Offering (IPO) aggregating up to ₹1,000.00 Crores. The issue comprises a fresh issue of 7.14 crore equity shares raising ₹600.00 Crores and an Offer for Sale (OFS) of 4.76 crore shares aggregating to ₹400.00 Crores.
The Hero Motors IPO subscription opens on September 16, 2026, and closes on September 18, 2026. The price band for the offering is fixed between ₹79 to ₹84 per share. Shares are proposed to be listed on both primary Indian exchanges: NSE and BSE, with a tentative listing date scheduled for September 23, 2026.
Hero Motors IPO Key Parameters
| Parameter | Details |
|---|---|
| IPO Opening Date | Wednesday, September 16, 2026 |
| IPO Closing Date | Friday, September 18, 2026 |
| Price Band | ₹79 to ₹84 per share |
| Face Value | ₹10 per share |
| Lot Size | 178 Shares |
| Total Issue Size | 11,90,47,618 shares (up to ₹1,000.00 Cr) |
| Fresh Issue | 7,14,28,571 shares (up to ₹600.00 Cr) |
| Offer for Sale (OFS) | 4,76,19,047 shares (up to ₹400.00 Cr) |
| Market Capitalization (at Upper Price) | ₹3,815.41 Crores |
| Issue Type | Book Built Issue IPO |
| Listing Exchanges | BSE, NSE |
Hero Motors IPO Category Reservation
The net offer is distributed among Qualified Institutional Buyers (QIBs), Non-Institutional Investors (NIIs), and Retail Individual Investors (RIIs) as per capital market regulations:
- Qualified Institutional Buyers (QIB): Not more than 50% of the Net Offer.
- Retail Individual Investors (Retail): Not less than 35% of the Net Offer.
- Non-Institutional Investors (NII / HNI): Not less than 15% of the Net Offer.
Hero Motors IPO Lot Size & Investment Details
Investors can bid for a minimum lot of 178 shares and in multiples of 178 shares thereafter. The minimum capital requirement for a retail investor bidding at the upper price band (₹84) is ₹14,952.
| Application Category | Lots | Total Shares | Minimum Amount (at Cut-Off Price ₹84) |
|---|---|---|---|
| Retail (Minimum) | 1 | 178 | ₹14,952 |
| Retail (Maximum) | 13 | 2,314 | ₹1,94,376 |
| Small HNI / S-HNI (Minimum) | 14 | 2,492 | ₹2,09,328 |
| Small HNI / S-HNI (Maximum) | 66 | 11,748 | ₹9,86,832 |
| Big HNI / B-HNI (Minimum) | 67 | 11,926 | ₹10,01,784 |
About Hero Motors Limited
Incorporated in April 1998, Hero Motors Limited is a leading automotive technology company operating in the design, development, manufacturing, and supply of engineered powertrain solutions. The company serves automotive original equipment manufacturers (OEMs) across major global regions, including the United States, Europe, India, and the ASEAN region.
The company provides integrated solutions across both electric and non-electric powertrain domains. Its product portfolio caters to a wide spectrum of applications, including two-wheelers, performance vehicles, e-bikes, off-road vehicles, electric/hybrid cars, heavy-duty applications, and Electric Vertical Take-Off and Landing (eVTOL) units.
Core Product Divisions
- Powertrain Solutions: Divided into Gears & Transmissions (G&T) for traditional automotive mobility and Bike Powertrain (BPT) focused on micro-mobility and global e-bike applications.
- Alloys & Metallics (A&M): Provides engineered sheet metal and tubular structural assemblies for automotive OEMs.
Competitive Strengths
- Strong internal R&D infrastructure and advanced engineering capabilities.
- Established long-term supply partnerships with top global OEMs such as BMW, Ducati, enviolo, Formula Motorsport, Hummingbird EV, and HWA.
- First-mover advantage in the global e-bike powertrain export market out of India.
- Robust management setup and global market coverage across micro-mobility and electric vehicle sectors.
Hero Motors Limited Financial Performance (Restated)
Hero Motors Limited has shown consistent growth across top-line and bottom-line figures over recent financial periods. The company recorded a revenue increase of 9% and a net profit (PAT) jump of 26% between FY25 and FY26.
| Financial Metric | FY Ending Mar 31, 2026 (₹ in Cr) | FY Ending Mar 31, 2025 (₹ in Cr) | FY Ending Mar 31, 2024 (₹ in Cr) |
|---|---|---|---|
| Total Assets | 1,371.83 | 1,164.62 | 1,059.86 |
| Total Revenue / Income | 1,216.74 | 1,111.23 | 1,083.42 |
| Profit After Tax (PAT) | 41.17 | 32.80 | 17.04 |
| EBITDA | 147.78 | 114.00 | 86.28 |
| Net Worth | 482.45 | 423.95 | 385.44 |
| Reserves and Surplus | 116.32 | 67.71 | 32.26 |
| Total Debt / Borrowings | 400.79 | 407.62 | 304.00 |
Key Financial Ratios & Valuations
Review the key financial metrics (as of March 31, 2026) and pre/post-issue valuation multiples below:
| Key Performance Indicator (KPI) | Value |
|---|---|
| Return on Equity (ROE) | 8.56% |
| Return on Capital Employed (ROCE) | 19.77% |
| Debt to Equity Ratio | 0.83 |
| PAT Margin (%) | 3.46% |
| EBITDA Margin (%) | 12.44% |
| Net Asset Value (NAV) per Share | ₹12.72 |
| Price to Book Value (P/BV) | 6.60x |
Valuation Parameters
| Valuation Metric | Pre-IPO | Post-IPO |
|---|---|---|
| Earnings Per Share (EPS) | ₹1.08 | ₹0.91 |
| Price-to-Earnings Ratio (P/E) | 77.78x | 92.31x |
| Market Capitalization | ₹3,215.41 Cr | ₹3,815.41 Cr |
Objects of the Issue
Hero Motors intends to utilize the proceeds raised from the fresh issue component (net of issue expenses) toward the following operational objectives:
| # | Objects of the Issue | Estimated Amount (₹ Cr) |
|---|---|---|
| 1 | Full or partial repayment/prepayment/redemption of certain outstanding borrowings | 190.00 |
| 2 | Capital expenditure toward equipment purchase for capacity expansion at Gautam Buddha Nagar, UP facility | 200.00 |
| 3 | Funding inorganic growth initiatives and general corporate needs | Remaining Proceeds |
Promoter Structure & Offer For Sale Details
Promoters of the Company: Pankaj Munjal, Charu Munjal, Abhishek Munjal, and O P Munjal Holdings.
Shareholding Pattern
- Pre-Issue Promoter Shareholding: 84.67%
- Post-Issue Promoter Shareholding: 61.63%
- Post-Issue Public Shareholding: 38.37%
Offer For Sale (OFS) Details
| Selling Shareholder | Category | Shares Offered | Amount (₹ Cr) |
|---|---|---|---|
| O.P. Munjal Holdings | Promoter Group | 4,70,23,809 | 395.00 |
| Hero Cycles Ltd. | Promoter Group | 5,95,238 | 5.00 |
Registrar & Lead Managers Contact Information
IPO Registrar
Kfin Technologies Limited
Phone: 040-79615565
Email: heromotors.ipo@kfintech.com
Book Running Lead Managers (BRLMs)
- ICICI Securities Limited
- DAM Capital Advisors Limited
- JM Financial Limited
Company Contact Address
Hero Motors Limited
Hero Nagar, GT Road, Ludhiana, Punjab – 141003
Phone: +91 120441200
Email: investorrelations@heromotors.com
Frequently Asked Questions (FAQs) – Hero Motors IPO
1. What are the opening and closing dates of the Hero Motors IPO?
The Hero Motors IPO opens for public subscription on September 16, 2026, and closes on September 18, 2026.
2. What is the price band for Hero Motors IPO?
The price band for Hero Motors IPO is set between ₹79 and ₹84 per equity share.
3. What is the minimum lot size for retail investors?
Retail investors can apply for a minimum of 1 lot (178 shares), which requires an investment of ₹14,952 calculated at the upper price boundary of ₹84.
4. What is the issue size of Hero Motors IPO?
The total issue size is ₹1,000.00 Crores, consisting of a Fresh Issue worth ₹600.00 Crores (7,14,28,571 shares) and an Offer for Sale of ₹400.00 Crores (4,76,19,047 shares).
5. When will the Hero Motors IPO allotment be finalized?
The share allotment status for Hero Motors IPO is expected to be finalized on Monday, September 21, 2026.
6. On which exchanges will Hero Motors list?
Hero Motors equity shares will list on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) on September 23, 2026.
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