Hero Motors, one of India’s leading automotive technology companies engaged in designing, developing, manufacturing and supplying highly engineered powertrain solutions catering to automotive original equipment manufacturers (OEMs) in United States, Europe, India and ASEAN region, is launching its public issue to investors today.
IPO Details
Price band: Rs 79 to Rs 84 per Equity Share of face value Rs.10 each.
Issue date: September 16, 2026, for subscription and close on Friday, September 18, 2026.
Market lot: Investors can bid for a minimum of 178 Equity Shares and in multiples of 178 Equity Shares thereafter.
Issue size: Rs 1,000 crore: The IPO is a combination of a fresh issue of up to Rs 600 crore and an offer-for-sale of equity shares up to Rs 400 crore by Promoters – O P Munjal Holdings, and Hero Cycles Limited.
Issue structure: The Offer is being made through the book-building process, in compliance with SEBI ICDR Regulations, wherein not more than 50% of the net offer will be available for allocation to qualified institutional buyers (QIBs), not less than 15% to non-institutional bidders (NIIs), and not less than 35% to retail individual bidders (RIIs).
Usage of funds: The proceeds from its fresh issuance worth Rs 190 crore will be used for repayment/ prepayment/redemption in full or in part, of certain outstanding borrowings availed by the company, Rs 200 crore for capital expenditure of the company through purchase of equipment required for expansion in capacity of its Gautam Buddha Nagar, Uttar Pradesh facility, funding inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes.
Anchor investor: Raised Rs 299.99 crore from anchor investors by allotting 3,57,14,284 equity shares at Rs 84 per share. Some of the marquee institutions that participated in the anchor include ICICI Prudential Life Insurance Company Limited, 3P India Equity Fund 1M, Edelweiss Life Insurance Company Limited, Societe Generale – ODI, and ASAS Global Fund Incorporated VCC Sub Fund, amongst others. Amongst equity-oriented schemes, the company has allocated shares to ICICI Prudential Smallcap Fund, Kotak Mahindra Trustee Co Ltd A/C Kotak MNC Fund and JM Financial Mutual Fund – JM Flexi Cap Fund, amongst others.
Company Information
Hero Motors is a fully integrated powertrain systems provider offering comprehensive solutions including services for designing, prototyping, validating, developing, and delivering system-level and component-level powertrain solutions for both electric as well as non-electric powertrains.
Its offerings find application in two-wheelers, performance automotive, e-bikes, off-road vehicles, electric and hybrid cars, heavy duty vehicles, and electric vertical take-off and landing (eVTOL) categories. The company caters to requirements of its global customers such as BMW AG (BMW), Ducati Motor Holding S.P.A. (Ducati), Enviolo International Inc (enviolo), Formula Motorsport Ltd (Formula Motorsport), HUMMINGBIRDEV Inc. (Hummingbird EV), HWA AG (HWA) and leading global electric bicycle (e-bike) manufacturers and other mobility applications such as aerospace.
BRLM/Registrar: CICI Securities Limited, DAM Capital Advisors Limited, and JM Financial Limited are the book-running lead manager, and KFin Technologies Limited is the registrar of the offer.
Listing at: NSE and BSE.
What brokers say
Anand Rathi: Hero Motors Limited has established a differentiated position in the automotive technology industry through its focus on engineered powertrain solutions across electric and non-electric mobility applications. The company benefits from design, engineering, prototyping, validation and manufacturing capabilities, enabling it to provide system-level and component-level solutions to automotive OEMs. Its portfolio includes CVTs, EV transmissions, electric motors, drive units and gear sets, providing exposure to ICE, performance automotive and electric mobility segments. rice band company is valuing at P/E of 92.6x and EV/EBITDA of 34.38x with to its FY26 earnings and market cap of Rs.38,154 million post issue of equity shares. We believe that the IPO is fully priced and recommend a “SubscribeLong Term” rating to the IPO
SBI Securities: Hero Motors is an automotive technology company with integrated capabilities across electric and non-electric powertrain solutions. The company delivered Revenue/EBITDA/PAT CAGR of 5.7%/34.3%/55.5%, respectively, during FY24-FY26, reflecting strong profitability growth despite modest revenue expansion. Its growing e-mobility portfolio, global presence and R&D capabilities provide long-term growth opportunities. Further, its 51:49 joint venture with Germany-based STP Group will manufacture high-precision forged powertrain components in India for domestic and global customers, expanding the Alloy & Metallics portfolio. However, the top five customers contributed 61.4% of FY26 revenue, exposing the business to changes in key customers’ demand and sourcing strategies. At the upper price band, Hero Motors is valued at a post-issue FY26 P/E multiple of 83.8x, which appears expensive as compared to its peers considering its modest revenue growth and high customer concentration. While the company’s technology-led capabilities and expansion into e-mobility and forged components remain promising, the valuation largely factors in future growth. Thus, we assign a NEUTRAL rating to the issue and would like to track its execution for a few quarters post-listing.