Hero Motors IPO
Bookbuilding IPO | ₹1,000.00 Cr | Listing at BSE, NSE
Closed
IPO Open
Wed, Sep 16, 2026
IPO Close
Fri, Sep 18, 2026
Price Band
₹79.00 to ₹84.00
Market Cap (Pre-IPO)
₹3,815.41 Cr
IPO Details
| IPO Date | Sep 16, 2026 to Sep 18, 2026 |
| Listing Date | Tentative: Sep 23, 2026 |
| Face Value | ₹10.00 per share |
| Price Band | ₹79.00 to ₹84.00 |
| Lot Size | 178 Shares (Minimum: ₹14,952.00) |
| Sale Type | Offer For Sale + Fresh Issue |
| Issue Type | Bookbuilding IPO |
| Listing At | BSE, NSE |
| Issue Size | ₹1,000.00 Crores |
| Total Shares Offered | 119,047,618 shares |
| Fresh Issue | 71,428,571 shares |
| Offer For Sale | 47,619,047 shares |
Hero Motors IPO Reservation
| Investor Category | Shares Offered |
|---|---|
| QIB Shares Offered | 50.00 |
| Retail Shares Offered | 35.00 |
| NII Shares Offered | 15.00 |
Hero Motors IPO Lot Size
Investors can bid for a minimum of 178 shares and in multiples thereof.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 178 | ₹14,952 |
| Retail (Max) | 13 | 2,314 | ₹194,376 |
| S-HNI (Min) | 14 | 2,492 | ₹209,328 |
| S-HNI (Max) | 66 | 11,748 | ₹986,832 |
| B-HNI (Min) | 67 | 11,926 | ₹1,001,784 |
Hero Motors Financial Information (Restated Consolidated)
Hero Motors Ltd.'s revenue increased by 9% and profit after tax (PAT) rose by 26% between the financial year ending with March 31, 2026 and March 31, 2025.
| Period Ended | 31 Mar 2026 | 31 Mar 2025 | 31 Mar 2024 |
|---|---|---|---|
| Assets | 1,371.83 | 1,164.62 | 1,059.86 |
| Total Income | 1,216.74 | 1,111.23 | 1,083.42 |
| Profit After Tax | 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 Borrowing | 400.79 | 407.62 | 304.00 |
Amount in ₹ Cr
Key Performance Indicators
As of Tuesday, March 31, 2026| KPI | Values |
|---|---|
| ROE (Return on Equity) | 8.56% |
| ROCE (Return on Capital Employed) | 19.77% |
| Debt/Equity | 0.83 |
| RoNW (Return on Net Worth) | 8.53% |
| PAT Margin (Profit After Tax 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 |
Company Overview
Hero Motors Limited – Company Overview
- 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 (OEMs).
- The company serves automotive OEMs across the United States, Europe, India, and ASEAN region, providing solutions for both electric and non-electric powertrains.
- Its powertrain solutions cater to two-wheelers, performance automotive, e-bikes, off-road vehicles, electric and hybrid cars, heavy-duty vehicles, and eVTOL applications.
- The company provides system-level and component-level solutions, covering designing, prototyping, validation, development, and delivery of powertrain systems.
- Its key areas of expertise include continuously variable transmissions (CVT), EV transmissions, electric motors, integrated drive units, and gear sets.
- The company has a first-mover position in the global e-bike powertrain market and is the only manufacturer in India producing and exporting CVT hubs and integrated electric powertrain products for e-bikes.
- Its operations are divided into two key segments:
- Powertrain Solutions: Includes Gears and Transmissions (G&T), serving automotive and mobility applications, and Bike Powertrain (BPT), focused on micro-mobility applications and global e-bike manufacturers.
- Alloys and Metallics (A&M): Provides sheet metal and tubular assemblies and components primarily to automotive OEMs.
- The company has established relationships with global customers including BMW, Ducati, enviolo, Formula Motorsport, Hummingbird EV, and HWA, along with leading global e-bike manufacturers.
- Hero Motors focuses on technology and innovation through its in-house design and engineering capabilities and partnerships with global technology players.
- As of March 31, 2026, the company had 1,388 permanent employees and 707 contract labourers.
Company Strengths
- Strong R&D and engineering capabilities.
- Long-term relationships with global OEMs.
- Strong presence in the global e-mobility industry.
- Diversified powertrain product and service offerings.
- Experienced management and strong corporate governance.
- Growing presence in electric bikes and premium two-wheelers.
Use of Proceeds
| 1) | Repayment/prepayment/redemption, in full or in part, of certain outstanding borrowings availed by Company | 190.00 |
| 2) | Capital expenditure of Company through purchase of equipment for expansion in capacity of Gautam Buddha Nagar, Uttar Pradesh facility | 200.00 |
| 3) | Funding inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes( | |
| Total | 390.00 |
Objectives
The Company proposes to utilise the Net Proceeds from the Issue towards the following objects:
Hero Motors IPO Peer Comparison
Hero Motors peer comparison with similar listed entities. (As on March 31, 2026)| Company Name | EPS (Basic) | EPS (Diluted) | NAV (per share) (Rs) | P/E (x) | RoNW (%) | P/BV Ratio | Financial statements |
|---|---|---|---|---|---|---|---|
| Hero Motors | 1.15 | 1.14 | 12.72 | - | 8.53 | - | - |
| Cie Automotive India Ltd | 21.69 | 21.69 | 164.65 | 17.68 | 13.18 | 2.34 | Consolidated |
| Endurance Technologies Ltd | 67.66 | 67.66 | 442.54 | 40.84 | 15.29 | 6.25 | Consolidated |
| Sona Blw Precision Forgings Ltd | 10.30 | 10.30 | 93.93 | 76.50 | 10.77 | 8.47 | Consolidated |
| Uno Minda Ltd | 20.78 | 20.78 | 113.77 | 59.84 | 19.59 | 10.98 | Consolidated |
| Varroc Engineering Ltd | 14.73 | 14.73 | 80.45 | 56.15 | 18.70 | 10.34 | Consolidated |
Quick Info
| Sector | automotive component manufacturing and automotive technology |
| Exchange | BSE, NSE |
| Market Cap (Pre-IPO) | ₹3,815.41 Cr |
Important Dates
| IPO Open | Sep 16, 2026 |
| IPO Close | Sep 18, 2026 |
| Allotment Date | Sep 21, 2026 |
| Credit to Demat | Sep 22, 2026 |
| Listing Date | Tentative: Sep 23, 2026 |
Lead Manager(s)
ICICI Securities Ltd.
Registrar
Description
- IPO Type: Book build issue aggregating to ₹1,000.00 crores.
- Issue Structure: The issue is a combination of a fresh issue of 7.14 crore shares aggregating to ₹600.00 crores and an offer for sale of 4.76 crore shares aggregating to ₹400.00 crores.
- IPO Dates: The issue opens for subscription on September 16, 2026 and closes on September 18, 2026.
- Allotment Date: The allotment is expected to be finalized on September 21, 2026.
- Listing Details: The shares are proposed to be listed on NSE and BSE on September 23, 2026.
- Retail Investment Requirement: Minimum 1 lot (178 shares) amounting to approximately ₹14,952 at the upper price band.
- Issue Price Band: ₹79 to ₹84 per equity share.
- Lot Size: 178 shares per lot.
This IPO offers investors an opportunity to participate in the company through a combination of a fresh issue of shares and an offer for sale by existing shareholders.