Hero Motors
Hero Motors Limited is a leading provider of advanced powertrain solutions and specialty materials for OEMs across the US, Europe, India, and ASEAN. The company operates in the automotive components sector, supplying parts for two-wheelers, electric and hybrid vehicles, and eVTOL aircraft.
Price Band
₹79 - ₹84
Lot Size
178 Shares
Issue Size
₹1,000.00 Cr
Fresh Issue
₹600.00 Cr
OFS
₹400.00 Cr
Registrar
AI Sentiment Score
Listing Price
₹82.00
vs Issue: ₹84 (-2.38%)
📅 IPO Timeline
✓
Open
Sep 16, 2026
✓
Close
Sep 18, 2026
✓
Allotment
Sep 21, 2026
✓
Refund
Sep 22, 2026
✓
Demat
Sep 22, 2026
✓
Listing
Sep 23, 2026
✨ AI Analysis & Prediction
-4.5%
predicted listing gain
The predicted listing gain is negative primarily due to very weak institutional (QIB) demand at 1.59x and a lack of Grey Market momentum. While the company shows steady revenue growth, the low ROE (8.56%) and moderate subscription levels suggest a lack of aggressive pricing appetite at the upper band.
💪 Strengths
- Diversified global presence in US, Europe, and ASEAN
- Exposure to high-growth eVTOL and hybrid vehicle sectors
⚠️ Weaknesses
- Low Return on Equity (ROE) of 8.56%
- Low institutional subscription velocity (1.59x)
🚀 Opportunities
- Expansion of Gautam Buddha Nagar facility
- Increasing global shift toward electric powertrain solutions
🛡️ Threats
- Intense competition from established auto-component peers
- Sensitivity to global OEM demand cycles
🎯 Objectives of the IPO
| Requirement / Purpose | Amount (₹ Cr) |
|---|---|
| Repayment/prepayment/redemption, in full or in part, of certain outstanding borrowings availed by our Company | ₹190.00 |
| Capital expenditure of our Company through purchase of equipment for expansion in capacity of our Gautam Buddha Nagar, Uttar Pradesh facility | ₹200.00 |
| Funding inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes | ₹610.00 |
📊 Financial Overview
| Metric | FY24 | FY25 | FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | Rs 1,064.00 Cr | Rs 1,090.00 Cr | Rs 1,188.00 Cr |
| Net Profit / PAT (₹ Cr) | Rs 17.00 Cr | Rs 33.00 Cr | Rs 41.00 Cr |
| EBITDA / Op. Profit (₹ Cr) | Rs 68.00 Cr | Rs 93.00 Cr | Rs 123.00 Cr |
| Borrowings (₹ Cr) | Rs 334.00 Cr | Rs 432.00 Cr | Rs 471.00 Cr |
| Total Assets (₹ Cr) | Rs 1,059.00 Cr | Rs 1,162.00 Cr | Rs 1,366.00 Cr |
| ROCE % | NA | 10.00% | 11.00% |
📋 Live Subscription Status
QIB
1.59x
NII
14.17x
Retail
8.62x
Total
7.01x
Updated: Sep 23, 2026 1:04 PM
💼 Reservation Quota
QIB
50.00%
Retail
35.00%
NII
15.00%
📈 Shareholding & Anchor Lock-In
🔗 Important Links & Lead Managers
- Check Allotment StatusCheck Now →
- Registrar WebsiteVisit →
- Download DRHP ProspectusDownload PDF 📥
- Download RHP ProspectusDownload PDF 📥
Lead Managers / Merchant Bankers
This issue is managed by Hem Securities Ltd., and Share India Capital Services Pvt. Ltd.
Disclaimer: The information provided on this page is for educational and informational purposes only and does not constitute financial advice. IPO investments are subject to market risks. AI-generated analysis is based on publicly available data and may not be accurate. Grey Market Premium (GMP) is unofficial and highly speculative. Always consult a qualified financial advisor and read the DRHP/RHP carefully before making investment decisions.
Hero Motors Limited specializes in the design, development, and supply of advanced powertrain solutions. The company's operational expertise is divided into two primary business areas: Powertrain Solutions, which focus on systems that convert energy into motion, and Alloys and Metallics, which provide specialized materials suitable for electric, fuel-based, and hybrid powertrains.
The company serves a diverse range of vehicle segments, including two-wheelers, e-bikes, high-performance cars, off-road vehicles, and heavy-duty vehicles. Notably, the company has expanded its technological footprint into the future of mobility by developing components for electric and hybrid models as well as eVTOL (electric vertical take-off and landing) aircraft.
Strategically positioned as a global supplier, Hero Motors caters to Original Equipment Manufacturers (OEMs) in key international markets including the United States, Europe, and the ASEAN region, alongside its strong domestic presence in India. This geographic diversification allows the company to leverage various global automotive trends, particularly the shift toward electrification.
The company's operational infrastructure includes a significant facility in Gautam Buddha Nagar, Uttar Pradesh, where it continues to expand its capacity. The promoter group, consisting of Pankaj Munjal, Charu Munjal, Abhishek Munjal, and O P Munjal Holdings, provides the strategic leadership and industry pedigree necessary to compete in the high-precision automotive components market.
The Hero Motors IPO is a Mainboard issue seeking to raise approximately ₹1,000 Crore. The structure comprises a fresh issue of ₹600 Crore and an Offer for Sale (OFS) of approximately 4,76,19,047 equity shares. The price band is set between ₹79 and ₹84 per share, with a minimum retail lot size of 178 shares. The issue is scheduled to open on September 16, 2026, and close on September 18, 2026, with listing on the BSE and NSE on September 23, 2026.
Proceeds from the fresh issue are earmarked for critical growth and debt management. Specifically, ₹190 Crore will be utilized for the repayment or prepayment of outstanding borrowings, and ₹200 Crore is allocated for capital expenditure to expand the capacity of the company's Gautam Buddha Nagar facility in Uttar Pradesh.
Financial performance indicates a steady upward trajectory. Revenue grew from ₹1,083.42 Crore in FY24 to ₹1,216.74 Crore in FY26. Net Profit (PAT) has also shown consistent growth, rising from ₹17.04 Crore in FY24 to ₹41.17 Crore in FY26, reflecting improved operational efficiency and scale.
From a valuation perspective, the company reports a basic EPS of ₹1.15 and a Net Asset Value (NAV) of ₹12.72. When compared to industry peers like Sona BLW and Uno Minda, who command significantly higher P/E ratios, Hero Motors appears to be positioned more conservatively, though its ROE of 8.56% is relatively low compared to the sector average.
Key strengths include its entry into the eVTOL and hybrid vehicle segments and a diversified global customer base. However, risks include the significant promoter offloading via the OFS and the competitive nature of the powertrain solutions market. Investors should weigh the steady growth against the modest institutional interest and low return on equity.