Hero Motors IPO 2026
Hero Motors Limited, the Munjal family-backed automotive technology company, is coming to the primary market with a ₹1,000 crore IPO. The company develops and manufactures highly engineered powertrain solutions and automotive components for OEM customers across India, Europe, the United States and ASEAN markets.
The IPO will open for public subscription on September 16, 2026 and close on September 18, 2026. The shares are expected to list on both BSE and NSE on September 23, 2026.
| Particular | Details |
|---|---|
| IPO Name | Hero Motors IPO |
| IPO Date | 16–18 Sep 2026 |
| Allotment | 21 Sep 2026 |
| Listing Date | 23 Sep 2026 |
| IPO Type | Book Built Issue |
| IPO Size | ₹1,000 Cr |
| Price Band | ₹79–₹84 |
| Lot Size | 178 Shares |
| Min. Investment | ₹14,952 |
| Fresh Issue | ₹600 Cr |
| OFS | ₹400 Cr |
| Listing | BSE & NSE |
| Registrar | KFin Technologies |
Hero Motors IPO GMP Today
The latest available grey-market update shows Hero Motors IPO GMP at around ₹16 per share. At the upper price band of ₹84, this indicates an estimated listing price of around ₹100 per share, implying a potential GMP-based gain of about 19%.
GMP is unofficial and can change quickly before listing. The estimated listing price is only a calculation based on the current grey-market premium and should not be treated as a guaranteed return.
| Particular | GMP |
|---|---|
| IPO Price | ₹84 |
| Current GMP | ₹16 |
| Estimated Listing | ₹100 |
| Estimated Gain | ₹16 |
| GMP Return | ~19% |
| GMP Status | Positive |
Hero Motors IPO Dates
The anchor bidding is scheduled for September 15, followed by the main IPO bidding from September 16 to September 18. The basis of allotment is expected on September 21, refunds and demat credit on September 22, and listing on September 23.
| Event | Date |
|---|---|
| Anchor Bidding | 15 Sep 2026 |
| IPO Opens | 16 Sep 2026 |
| IPO Closes | 18 Sep 2026 |
| Allotment | 21 Sep 2026 |
| Refund | 22 Sep 2026 |
| Demat Credit | 22 Sep 2026 |
| Listing | 23 Sep 2026 |
Hero Motors IPO Lot Size and Investment
The Hero Motors IPO lot size is 178 shares. At the upper price band of ₹84, one lot requires an investment of ₹14,952.
Retail investors can apply for one lot as the minimum application. Applications can be made in multiples of 178 shares, subject to the applicable retail-category limits.
| Particular | Details |
|---|---|
| Lot Size | 178 Shares |
| Price per Share | ₹84 |
| 1 Lot Value | ₹14,952 |
| 2 Lots | ₹29,904 |
| 10 Lots | ₹1,49,520 |
Hero Motors Company Business
Hero Motors is an automotive technology company focused on designing, developing, manufacturing and supplying engineered powertrain solutions to automotive original equipment manufacturers.
Its product and technology portfolio serves applications across two-wheelers, passenger vehicles, commercial vehicles and other mobility segments. The company has an international manufacturing and technology footprint, with facilities across India, the United Kingdom and Thailand and technology centres in the UK and Uttar Pradesh.
Hero Motors supplies components and solutions to global automotive customers, giving it exposure beyond the domestic Indian market. Its customer base includes major international automotive companies, which supports its positioning as a technology and component supplier rather than a vehicle manufacturer.
Hero Motors IPO Issue Structure
The ₹1,000 crore IPO consists of a ₹600 crore fresh issue and a ₹400 crore offer for sale. The fresh issue will bring new capital into Hero Motors, while the OFS proceeds will go to the selling shareholders.
| Particular | Details |
|---|---|
| Total Issue | ₹1,000 Cr |
| Fresh Issue | ₹600 Cr |
| Offer for Sale | ₹400 Cr |
| Fresh Shares | 7.14 Cr |
| OFS Shares | 4.76 Cr |
| Total Shares | ~11.90 Cr |
The revised IPO size was reduced from the earlier proposed ₹1,200 crore, mainly through a reduction in the fresh issue component.
Hero Motors IPO Financial Performance
Hero Motors has reported improvement in revenue and profitability over the recent financial years. Restated consolidated figures show total income rising from ₹1,083.42 crore in FY2024 to ₹1,111.23 crore in FY2025 and ₹1,216.74 crore in FY2026.
Profit after tax increased from ₹17.04 crore in FY2024 to ₹32.80 crore in FY2025 and ₹41.17 crore in FY2026. FY2026 EBITDA stood at ₹147.78 crore.
| Financial Year | Total Income | PAT |
|---|---|---|
| FY2024 | ₹1,083.42 Cr | ₹17.04 Cr |
| FY2025 | ₹1,111.23 Cr | ₹32.80 Cr |
| FY2026 | ₹1,216.74 Cr | ₹41.17 Cr |
The FY2026 numbers show approximately 9% growth in total income over FY2025, while PAT increased by around 26%.
Hero Motors IPO Financial Ratios
Hero Motors' FY2026 return ratios show an improvement in profitability, although the business continues to carry meaningful borrowings.
Available IPO data reports FY2026 ROCE at around 19.77%, RoNW at 8.53% and PAT margin at approximately 3.46%.
| Ratio | FY2026 |
|---|---|
| ROCE | 19.77% |
| RoNW | 8.53% |
| PAT Margin | 3.46% |
| EBITDA | ₹147.78 Cr |
| Net Worth | ₹482.45 Cr |
| Borrowings | ₹400.79 Cr |
The company's total borrowings were approximately ₹400.79 crore as of March 31, 2026.
Hero Motors IPO Objects of the Issue
The ₹600 crore fresh issue is primarily intended to strengthen the company's balance sheet and support capacity expansion.
Around ₹190 crore is proposed for repayment or prepayment of certain outstanding borrowings and accrued interest. Another ₹200 crore is planned for purchasing equipment required to expand capacity at the company's Gautam Buddha Nagar facility. The remaining amount is intended for inorganic growth, strategic initiatives and general corporate purposes.
| Use of Funds | Amount |
|---|---|
| Debt Repayment / Prepayment | ₹190 Cr |
| Capacity Expansion | ₹200 Cr |
| Inorganic Growth & GCP | Balance |
| Total Fresh Issue | ₹600 Cr |
Hero Motors IPO Subscription
The Hero Motors IPO will open for public subscription on September 16, so the final subscription figures are not available yet.
The issue has a reservation structure of approximately 50% for QIBs, 15% for NIIs and 35% for retail investors. Anchor bidding is scheduled for September 15.
Investors should watch the QIB, NII and retail subscription levels during the three-day bidding period, particularly on the final day.
Hero Motors IPO Strengths
Hero Motors has several positives that may attract investors. Its long operating history, international manufacturing footprint and relationships with global automotive OEMs give the company an established position in the automotive component ecosystem.
The company is also positioned around powertrain technology and advanced mobility applications, giving it exposure to changing automotive technologies and global demand.
Key strengths include:
- Established automotive technology business
- Global OEM customer exposure
- Manufacturing presence in India, UK and Thailand
- Dedicated technology centres
- FY2024–FY2026 revenue growth
- Improving FY2026 profitability
- Planned capacity expansion
- ₹190 crore debt repayment from fresh issue
- Exposure to multiple automotive markets
Hero Motors IPO Risks
Hero Motors also has several risks that investors should consider carefully. Customer concentration is significant, with more than 70% of revenue coming from the top ten customers over the past three fiscal years. The largest customer contributed more than 30% of revenue, making the loss or reduction of a major contract potentially important for the business.
Another concern is the performance of subsidiaries. Six subsidiaries reported losses in FY2026, creating uncertainty around their future profitability. The company also has pending regulatory and legal proceedings, while certain promoter-group entities face insolvency-related proceedings.
Other important risks include:
- High customer concentration
- Loss of major OEM contracts
- Loss-making subsidiaries
- Dependence on selected suppliers
- Automotive industry cyclicality
- Significant borrowings
- Legal and regulatory proceedings
- Execution risk on international operations
- Dependence on successful capacity expansion
Hero Motors IPO Valuation
At the upper price band of ₹84, Hero Motors is being valued at approximately ₹3,815 crore. Reuters reported the implied valuation at the upper end of the price band at around ₹38.15 billion.
The valuation should be considered alongside the company's FY2026 earnings, debt position and future growth plans. While profitability has improved, the company's PAT margin remains relatively modest at around 3.46%.
Investors should therefore compare Hero Motors with relevant automotive-component companies rather than evaluating the issue only on the basis of its well-known Hero brand association.
Hero Motors IPO Review
Hero Motors IPO Review: Positive with Caution
Hero Motors offers exposure to an established automotive technology and powertrain business with global OEM relationships. Revenue has grown to ₹1,216.74 crore in FY2026 and PAT has increased to ₹41.17 crore. The fresh issue also has a clear purpose, with funds earmarked for debt reduction and capacity expansion.
The current ₹16 GMP is a positive indicator for potential listing sentiment, although GMP can change before listing and should not be treated as a guaranteed return.
At the same time, customer concentration, loss-making subsidiaries, borrowings and legal proceedings are meaningful risks. Investors should therefore consider Hero Motors as a fundamentally interesting IPO but avoid making the investment decision solely on its GMP or the broader Hero brand name.
Hero Motors IPO Key Highlights
- ₹1,000 crore mainboard IPO
- IPO opens September 16 and closes September 18, 2026
- Price band ₹79–₹84
- Lot size 178 shares
- Minimum investment ₹14,952
- ₹600 crore fresh issue
- ₹400 crore OFS
- BSE and NSE listing
- Expected listing date September 23, 2026
- FY2026 total income ₹1,216.74 crore
- FY2026 PAT ₹41.17 crore
- FY2026 EBITDA ₹147.78 crore
- FY2026 ROCE about 19.77%
- Current GMP around ₹16
- GMP-based indicative listing around ₹100
- Debt repayment and capacity expansion are major IPO objectives
- Significant customer concentration is a key risk
Hero Motors IPO Conclusion
Hero Motors IPO is an important mainboard offering from an established automotive technology company associated with the Munjal family. The company's international operations, OEM relationships, improving financial performance and powertrain-focused business provide a strong foundation for future growth.
The ₹600 crore fresh issue is also being directed toward meaningful corporate purposes, particularly debt repayment and capacity expansion. However, investors should carefully consider customer concentration, subsidiary losses, borrowings and legal or regulatory risks.
With the current GMP around ₹16, market sentiment is positive, but GMP can change significantly before listing. Investors should evaluate the IPO based on financial performance, valuation, business quality and long-term growth prospects rather than relying only on expected listing gains.
Disclaimer: GMP is an unofficial and unregulated market indicator and can change at any time. GMP-based listing estimates are not guaranteed. Investors should read the Hero Motors IPO RHP and evaluate the company's risks, valuation and financial performance before investing.
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