Hero Motors IPO

The Hero Motors mainboard IPO runs from 16 Sept 2026 to 18 Sept 2026, offered at a price band of ₹79–84 per share, and is set to list on NSE and BSE. The company is looking to raise ₹1,000 crore through the offer. Retail investors bid in lots of 178 shares, a minimum application of ₹14,952.

Issue structure

The offer combines a fresh issue of ₹600 crore with an offer for sale (OFS) of ₹400 crore by existing shareholders. Money raised through the fresh issue goes to the company for its stated objects, while OFS proceeds go to the selling shareholders rather than the business.

Objects of the issue

Per the offer document, the company intends to deploy the net proceeds primarily toward capital expenditure of company through purchase of equipment for expansion in capacity of gautam buddha nagar, uttar pradesh facility (₹200 crore), alongside repayment/prepayment/redemption, in full or in part, of certain outstanding borrowings availed by company (₹190 crore). In all, 3 objects are disclosed — the full break-up is in the table above.

Financials

In FY2026, Hero Motors reported revenue of ₹1,216.74 crore and a net profit of ₹41.17 crore. Revenue grew from ₹1,083.42 crore in FY2024 to ₹1,216.74 crore in FY2026 (+12.0%). Net worth stood at ₹482.45 crore at the end of FY2026. At the upper band, that puts the issue at roughly 77.8× FY2026 earnings (P/E), a figure worth comparing against listed peers in the sector.

Valuation

At the upper band, the issue is priced at 92.31× post-issue earnings and 6.6× book value, against a return on net worth of 8.53% and a debt-to-equity ratio of 0.83. These ratios come from the offer document and are for comparison, not a recommendation.

Peer comparison

The offer document names listed peers including Cie Automotive India Ltd and Endurance Technologies Ltd, with a median peer P/E of about 56.2×. The issue's own post-issue P/E works out to 92.31×.

Promoters

The promoters of the company are <p>Pankaj Munjal, Charu Munjal, Abhishek Munjal, O P Munjal Holdings</p>. Promoter holding stands at 84.67% before the issue and comes down to 61.63% after listing.

Grey market premium (GMP)

In the unofficial grey market, Hero Motors shares are quoted at a premium of ₹0 implying an expected listing around ₹84, about +0.0% over the upper band. Grey market premium is a sentiment indicator set by private dealers, not the company or the exchange — it moves quickly and is not a reliable predictor of the actual listing price.

What to weigh

When evaluating the Hero Motors IPO, the data points most investors look at are the fresh-issue-versus-OFS split, the revenue and profitability trend and the grey market premium. Grey market premium and subscription figures reflect short-term sentiment rather than long-term fundamentals; the figures on this page are for information only and are not investment advice.

About Hero Motors

Hero Motors Limited is one of India's automotive technology companies, specializing in the design, development, manufacturing, and supply of highly engineered powertrain solutions for automotive original equipment manufacturers (OEMs) across the United States, Europe, India, and the ASEAN region. The company&rsquo;s diverse product portfolio serves a wide range of mobility applications, including two-wheelers, performance automotive, e-bikes, off-road vehicles, electric and hybrid cars, heavy-duty vehicles, and electric vertical take-off and landing (eVTOL) aircraft. Hero Motor Limited supplies powertrain solutions to globally recognized brands such as BMW AG, Ducati Motor Holding S.P.A., Enviolo International Inc., Formula Motorsport Ltd., Hummingbird EV, HWA AG, and leading global electric bicycle (e-bike) manufacturers. The company&rsquo;s expertise extends beyond automotive applications into aerospace and other mobility sectors. Hero Motor Limited operates through two key business segments: Powertrain Solutions &ndash; Integrated systems designed to propel vehicles by converting energy into motion. Alloys and Metallics (A&amp;M) &ndash; Advanced materials used in EVs, internal combustion engine vehicles (ICEs), and hybrid vehicles, making them powertrain-neutral. As of March 31, 2024, Hero Motor Limited operated six manufacturing facilities strategically located across India, the United Kingdom, and Thailand to enhance customer proximity and cost efficiency. The company&rsquo;s Samut Prakan, Thailand facility, which began operations in Fiscal 2024, caters specifically to the ASEAN market. Its Maidenhead, United Kingdom facility, equipped with design and prototyping capabilities, has enabled Hero Motor Limited to evolve into a complete systems manufacturer for the global automotive sector. In India, the company&rsquo;s manufacturing units are located in Gautam Buddha Nagar, Uttar Pradesh, and Ludhiana, Punjab. Additionally, two technology centres operate in Southam, United Kingdom, and Gautam Buddha Nagar, Uttar Pradesh, reinforcing Hero Motor Limited&rsquo;s commitment to innovation and technological excellence in the global automotive industry.