HERO Motors Limited IPO

Hero Motors is planning to raise ₹1,000 crore through its IPO, which will include both a fresh issue of shares and an offer for sale (OFS). The company will issue 7.14 crore new shares worth ₹600 crore, while existing shareholders will sell 4.76 crore shares worth ₹400 crore. 

The IPO will open for subscription on September 16, 2026, and close on September 18, 2026. The share allotment is expected to be finalised on September 21, 2026, with the company likely to make its stock market debut on September 23, 2026 on both the NSE and BSE. 

The IPO price band has been fixed at ₹79–₹84 per share. Investors can apply for a minimum of 178 shares in one lot. At the upper end of the price band, a retail investor will need to invest at least ₹14,952 to apply for one lot. 

ICICI Securities Ltd. is the book-running lead manager for the IPO, while Kfin Technologies Ltd. will act as the registrar.

About HERO Motors Limited

Hero Motors Ltd. is an automotive technology company. It designs, develops, and supplies powertrain solutions to automotive OEMs like BMW, Ducati, and HWA. Its key markets include India, the US, Europe and the ASEAN region. 

It has 2 main business segments: Powertrain Solutions and Alloys & Metallics (A&M). Powertrain Solutions contributed ₹637.75 crore, or 53.67% of revenue, in FY26. A&M contributed ₹550.60 crore, or 46.33%. 

The company is also expanding its EV business. EV revenue more than doubled from ₹128.09 crore in FY24 to ₹273.29 crore in FY26. Its share of total revenue increased from 12.03% to 23.00% during the same period.

Industry Outlook

The company operates in the automotive industry. 

1. India’s two-wheeler industry grew at a 16.2% CAGR from FY22 to FY26, reaching 22.1 million units. Volumes are expected to grow 6–7% annually to 29–31 million units by FY31.
2. Two-wheelers accounted for 74.1% of India’s auto sales by volume in FY26, making them the largest vehicle segment.
3. Demand for 125cc-and-above motorcycles and scooters is supporting two-wheeler growth. This could increase demand for Hero Motors’ powertrain and component solutions.
4. Electric two-wheeler sales grew at a 101.8% CAGR from FY21 to FY26. EV adoption is expected to remain strong as costs fall, charging infrastructure improves and financing becomes easier.
5. CRISIL Intelligence expects electric two-wheeler retail sales to grow 40–42% annually. Hero Motors is expanding its capacity for e-mobility-related products to address this growth.
6. Passenger vehicle sales rose from 3.1 million units in FY22 to 4.6 million in FY26. They are expected to reach 6.2–6.4 million units by FY31, growing at 6–7% annually.
7. Growth in vehicle production across two-wheelers and passenger vehicles could increase demand for components, transmissions and powertrain systems.
8. Hero Motors plans to invest ₹200 crore in equipment at its Gautam Buddha Nagar facility. The expansion will support systems and e-mobility-related products.

HERO Motors IPO Objectives

1. The company plans to use ₹190 crore of the IPO proceeds to repay or prepay some of its borrowings. As of July 31, 2026, it had standalone borrowings of ₹289.55 crore, so the planned repayment could significantly reduce its debt and interest burden.
2. Around ₹200 crore will be used to purchase equipment for expanding the capacity of its Gautam Buddha Nagar facility in Uttar Pradesh. The expansion is aimed at increasing production of systems and e-mobility-related products.
3. According to the CRISIL Report, global BEV volumes are expected to increase from 3.36 million units in 2024 to 11.5–12.5 million units by 2031. EV penetration in motorcycles is also projected to rise from 2.0% to 10.5–12.5% over the same period. The company wants to strengthen its position in the growing electric vehicle market.
4. A portion of the funds will be set aside for future acquisitions and strategic investments. The company is looking at opportunities in India and overseas that can add new products, technologies, customers or markets to its business.
5. The company is particularly looking for acquisition opportunities in gears and transmissions and bike powertrains. These deals could help it add new technologies, improve engineering capabilities, enter adjacent markets and achieve cost synergies.
6. The remaining funds will be available for general corporate purposes, such as business development, strategic initiatives, investments, vendor payments and other day-to-day funding requirements. This gives the company flexibility to deploy the money where it is most needed.

Financial Performance of HERO Motors Limited

HERO Motors Peer Comparison

Strengths and Opportunities of HERO Motors IPO

1. The company’s revenue from e-mobility segment more than doubled from ₹128.09 crore in FY24 to ₹273.29 crore in FY26. Its share of revenue increased from 12.03% to 23.00%.
2. The company works with global customers such as BMW, Ducati, Hero MotoCorp, Formula Motorsport, HWA Engineering and Enviolo.
3. The company spent ₹89.59 crore on R&D in FY26, equal to 7.54% of revenue.
4. Its stake in Hewland Engineering has strengthened its design, prototyping and high-performance transmission capabilities.
5. Hero Motors entered the e-bike powertrain market early. According to the CRISIL Report, it is the only Indian player manufacturing and exporting CVT hubs to global e-bike OEMs.
6. An experienced management team and long-term relationships with global OEMs support the company’s growth.

Risks and Threats of HERO Motors IPO

1. The company generated 72.89% of its revenue from operations from its top 10 customers in FY26, up to ₹8,661.40 million, making its business vulnerable to the loss or reduction of orders from key customers.
2. Europe accounted for 33.59% of revenue from operations in FY26, compared with 28.45% in FY25 and 29.33% in FY24. Adverse economic, regulatory or industry developments in Europe could therefore materially impact revenue.
3. The company’s performance is closely linked to the e-bike and two-wheeler markets in India and overseas. A slowdown or adverse changes in these industries could affect its sales, cash flows and profitability.
4. The company relies on a select group of suppliers for critical raw materials and does not have definitive supply agreements with all of them. Any supply disruption, capacity constraint or delay could interrupt production and affect financial performance.
5. Failure to meet stringent customer requirements for quality and timely delivery could result in recalls, warranty claims, reduced business share or cancellation of existing and future orders.
6. Rapid changes in automotive technology and customer preferences could require continuous product development. The company may face financial and operational pressure if it fails to develop products that keep pace with changing market requirements.
7. The company operates in the competitive global powertrain solutions, alloys and metallics markets. Its ability to retain customers and grow market share may be affected by competition from established global players.
8. The company is particularly exposed to premium two-wheeler OEMs. While global two-wheeler volumes grew from 12.54 million units in 2020 to 16.89 million units in 2025, changes in consumer demand, especially for higher-displacement motorcycles, could affect growth prospects.
9. The company handles hazardous materials and undertakes potentially hazardous manufacturing activities. Accidents or other incidents could lead to production stoppages, civil or criminal liabilities and additional costs, adversely affecting operations and financial performance.

HERO Motors IPO Reservation

HERO Motors IPO Promoter Holding

The promoters of the company are Pankaj Munjal, Charu Munjal, O P Munjal Holdings and Abhishek Munjal.

HERO Motors IPO Prospectus

• HERO Motors IPO DRHP
• HERO Motors IPO RHP

HERO Motors IPO Registrar and Lead Managers

HERO Motors IPO Lead Managers

1. ICICI Securities Ltd.
2. Dam Capital Advisors Ltd.
3. JM Financial Ltd.

Registrar for HERO Motors IPO

Name: KFin Technologies Limited

Address: 301, The Centrium, 3rd Floor, 57, Lal Bahadur Shastri Road, Nav Pada, Kurla (West), Kurla, Mumbai (400070), Maharashtra, India

Contact Person: M. Murali Krishna 

Tel: +91 40 6716 2222

E-mail: einward.ris@kfintech.com

HERO Motors IPO Registrar

How To Apply for HERO Motors IPO Online?

1. Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
2. Locate the IPO Section: Navigate to the 'IPO' section on the platform.
3. Select IPO: Find and select the HERO Motors IPO from the list of open IPOs.
4. Enter the Lot Size: Specify the number of lots you want to bid for.
5. Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
6. Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.

How To Check the Allotment Status of the HERO Motors IPO?

Steps to check IPO allotment status on Angel One’s app:

1. Log in to the Angel One app.
2. Go to the IPO Section and then to IPO Orders.
3. Select the individual IPO that you had applied for and check the allotment status.
4. Angel One will notify you of your IPO allotment status via push notification and email.

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Contact Details of HERO Motors IPO 

Registered Office: Hero Nagar, GT Road, Ludhiana, Punjab, 141003

Phone: + 91 120441200

E-mail: investorrelations@heromotors.com