Hero Motors IPO- Complete Overview
Hero Motors IPO is a Mainboard IPO with an issue size of Rs. 1,000 Cr by Hero Motors Limited, which is an automotive technology firm that designs, develops, manufactures, and supplies engineered powertrain solutions to OEMs in the US, Europe, India, and ASEAN. The company serves two-wheelers, performance automobiles, e-bikes, off-road vehicles, electric and hybrid cars, heavy-duty vehicles, and eVTOL applications by offering integrated solutions for both electric and non-electric powertrains.
The company provides powertrain system design, prototyping, validation, development, and delivery solutions at both the system and component levels. It is renowned for its proficiency in electric motors, integrated drive units, gear sets, EV transmissions, and continuously variable transmissions (CVT). As the sole producer of CVT hubs and integrated electric powertrain systems for e-bikes in India, the company holds a first-mover position in the worldwide e-bike powertrain market.
This new IPO is to be launched on 16 Sep 2026, and its ‘initial public offering’ will end on 18 Sep 2026.
Hero Motors IPO Details
This Mainline IPO comprises a combination of a fresh issue of 7.14 Cr shares (Rs. 600 Cr) and an offer for sale of 4.76 Cr shares (Rs. 400 Cr). The Hero Motors IPO listing date (expected) might be Wednesday, Sep 23, 2026, and the listing on the BSE and NSE.
The Hero Motors IPO price band is Rs. 79 to Rs. 84.
IPO Timetable (Tentative)
The Hero Motors IPO date is from 16 Sep to 18 Sep, with IPO allotment on Sep 21, refund initiation on Sep 22, and listing on Sep 23, 2026.
|
Events |
Date |
|
IPO Opening Date |
Sep 16, 2026 |
|
IPO Closing Date |
Sep 18, 2026 |
|
IPO Allotment Date |
Sep 21, 2026 |
|
Refund Initiation |
Sep 22, 2026 |
|
IPO Listing Date |
Sep 23, 2026 |
If you want to apply for the IPO, click to open a Demat Account.
Industry Overview & Outlook
The two-wheeler industry sales are projected to grow at 6 to 7% CAGR and reach volumes of 29 to 31 million by fiscal 2031.
Hero Motors Company Financial Performance
(Amount in Cr)
|
Particulars |
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 |
Cash Flows
The cash flows for various activities are shown below:
(Amount in Mn)
|
Net Cash Flow In Multiple Activities |
31 Mar 2026 |
31 Mar 2025 |
31 Mar 2024 |
|
Net Cash Flow Operating Activities |
1,440.42 |
483.43 |
1,319.66 |
|
Net Cash Flow Investing Activities |
(693.86) |
(1,352.31) |
(769.27) |
|
Net Cash Flow Financing Activities |
(617.98) |
536.91 |
(203.63) |
Hero Motors IPO- Business Model
HML earns revenue primarily by selling engineered components, complete systems, and related design/engineering services to OEMs on a B2B basis. Key elements of the model include:
- Long-term OEM relationships and serial production contracts: Customers include premium global players such as BMW, Ducati, Hero MotoCorp, Enviolo, HWA, Escorts, Formula Motorsport, and various e-bike and EV OEMs. Relationships with top customers often exceed 10–25 years. Switching costs are high due to the need for validation, quality certifications (e.g., PPAP), and precision engineering. Top 10 customers contributed ≈73% of revenue in Fiscal 2026.
- Value-added full-system solutions (not just “make-to-print”): Design-to-cost engineering, prototyping, validation, and high-volume manufacturing differentiate it from pure component suppliers. This includes NVH-optimized, lightweight, high-torque solutions critical for EVs and premium ICE vehicles.
- Geographic diversification: Manufacturing and technology centers in India (Gautam Buddha Nagar/UP and Ludhiana/Punjab), UK (Maidenhead and Southam technology center via Hewland), and Thailand (Samut Prakan). ≈41% of revenue comes from international customers (mainly Europe, US, ASEAN).
Technology partnerships and JVs:
- Enviolo (CVT technology and co-development of “Urban” hubs).
- Yamaha Motors (HYM JV for electric hub motors).
- Majority stake in Hewland Engineering (UK) for high-performance/motorsport gearboxes, design, and prototyping.
- Other collaborations for DCT technology, forging components (with STP Group), etc.
- Growing EV/micro-mobility focus: First-mover advantage in Indian e-bike powertrains; expanding EDU and full systems to capture electrification trends.
- Powertrain Solutions ≈54% of revenue in Fiscal 2026
- Alloys & Metallics (A&M) ≈46% of revenue in Fiscal 2026.
Revenue Bifurcation
(Source: RHP)
The Objective of the Issue
-
Repayment/prepayment/redemption, in full or in part, of certain outstanding borrowings availed by the Company. ~ Rs. 190 Cr.
-
Capital expenditure of the Company through purchase of equipment for expansion in capacity of Gautam Buddha Nagar, Uttar Pradesh facility. ~ Rs. 200 Cr.
-
General Corporate Purposes.
Peers of Hero Motors
|
Name of Company |
Face Value (₹) |
EPS (₹) Basic |
P/E (x) |
|
CIE Automotive India Limited |
10 |
21.69 |
17.68 |
|
Endurance Technologies Limited |
10 |
67.66 |
40.84 |
|
Sona BLW Precision Forgings Limited |
10 |
10.30 |
76.50 |
|
UNO Minda Limited |
2 |
20.78 |
59.84 |
|
Varroc Engineering Limited |
1 |
14.73 |
56.15 |
Evaluation of P/E Ratio
Considering the period ended on FY 2026 with an EPS of Rs. 1.15 from the last year, the resulting P/E ratio is 73.04x.
Hero Motors IPO Valuation
|
KPI |
Value (Mar 31, 2026) |
|
ROE |
8.56% |
|
ROCE |
19.77% |
|
Debt/Equity |
0.83 |
|
RoNW |
8.53% |
|
PAT Margin |
3.46% |
|
EBITDA Margin |
12.44% |
IPO's Strengths
-
Strong engineering and R&D skills.
-
Long-term connections with international OEMs.
-
Strong position in the international e-mobility market.
-
A wide range of powertrain services and products.
IPO's Weaknesses
-
Business and financial performance may be impacted by supply disruptions, production delays, and increased costs brought on by relying on a small number of suppliers for essential raw materials and not having final supply agreements with all suppliers.
-
Product recalls, warranty/liability claims, repair or replacement costs, decreased company share, or order cancelation may occur if customers' quality, measurement, tolerance, and delivery standards are not met.
-
Given the speed at which EV and ICE technologies are developing, the company may not be able to react swiftly to shifting automotive technologies and market trends or create products that meet consumer demand. This could have a negative impact on financial performance.
Hero Motors IPO GMP Today
Hero Motors IPO GMP has not started yet as of September 10, 2026, when this information was written.
IPO Other Details
|
IPO Opening & Closing Date |
16 Sep 2026 to 18 Sep 2026 |
|
Face Value |
Rs. 10 per Share |
|
Issue Price |
Rs. 79 to Rs. 84 |
|
Lot Size |
178 Shares |
|
Issue Size |
11,90,47,618 shares (Rs. 1000 Cr) |
|
Offer for Sale |
4,76,19,047 shares (Rs. 400 Cr) |
|
Fresh Issue |
7,14,28,571 shares (Rs. 600 Cr) |
|
Listing At |
BSE, NSE |
|
Issue Type |
Book-built IPO |
|
Registrar |
Kfin Technologies Ltd. |
IPO Grey Market Premium
The current IPO GMP is available at our live IPO GMP page, where you can get the GMP today for open Mainboard and SME IPOs.
Hero Motors IPO Lot Size
The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (178 Shares) amounting to Rs. 14952 and 13 Lots (2314 Shares) for Rs. 1,94,376, respectively, while for HNI investors, the minimum Lot is 14 (2492 Shares) amounting to Rs. 2,09,328.
|
Minimum Lot Investment (Retail) |
1 Lot |
|
Maximum Lot Investment (Retail) |
13 Lots |
|
S-HNI (Minimum) |
14 Lots |
|
S-HNI (Maximum) |
66 Lots |
|
B-HNI (Minimum) |
67 Lots |
Hero Motors IPO Reservation
|
Institutional Share Portion |
50% |
|
Retail Investors' Share Portion |
35% |
|
Non-Institutional Shares Portion |
15% |
Promoters and Management of Hero Motors Ltd.
-
Pankaj Munjal
-
Charu Munjal
-
Abhishek Munjal
-
O P Munjal Holdings.
|
Pre-Issue Promoter Shareholding |
84.67% |
|
Post-Issue Promoter Shareholding |
61.63% |
IPO Lead Managers
- ICICI Securities Ltd.
Dividend Policy
The company has paid a dividend of Rs. 88.89 Mn and Rs. 88.39 Mn in FY25 and FY24, respectively.
Hero Motors IPO Review: Subscribe or Avoid?
Hero Motors is a specialized automotive technology company focused on engineered powertrain solutions (gears, transmissions, CVT hubs, electric motors, EDUs) and alloys & metallics components. EV contribution has risen to 23% of revenue in FY26, with strong global OEM relationships (BMW, Ducati, Enviolo, Hero MotoCorp, etc.) and ~41% export revenue.
High customer concentration (top 10 ~73%, top customer ~36%), dependence on a limited set of raw material suppliers, cyclical automotive demand, and execution risk on capacity expansion remain material. Technology shifts in EV/ICE powertrains and competitive intensity in the global powertrain space also need monitoring.
Before making any decision to subscribe or avoid, you should consult your SEBI-registered financial advisor.
Hero Motors IPO News
Hero Motors IPO Allotment Status
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Finowings IPO Analysis
Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO.
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DISCLAIMER: This blog is NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions.
