Hero Motors IPO
Hero Motors shares listed on BSE and NSE on 23 September 2026 after an IPO priced at ₹84, an issue of ₹1,000 crore.
- Minimum investment
- ₹14,9521 lot of 178 shares, at the issue price
- Issue price
- ₹84
- Lot size
- 178 shares
- Issue size
- ₹1,000 croreFresh issue and offer for sale
- Bidding
- 16 Sep to 18 Sep
- Listing
- 23 SepBSE, NSE
Dates
Hero Motors IPO dates
RHP cover page and Terms of the Offer- 15 SepAnchor bidding
- 16 SepBidding opens
- 18 SepBidding closes, UPI by 5 pm
- 21 SepAllotment
- 22 SepRefunds and demat credit
- 23 SepListing
- Today7 Nov
Read before you apply
Hero Motors IPO review: read before you apply
Worth checking
- SeriousA few customers bring most sales
The top customer gave 35.57% of FY26 revenue and the top 10 gave 72.89%. Named top customers include River Mobility, Hero MotoCorp, BMW, enviolo and Ducati (Risk factor 5).
- SeriousThin profit margins
PAT margin was 3.46% in FY26 and return on equity 8.56%. Listed peers in the RHP trade at an average P/E of 50.20x (RHP, Basis for Offer Price).
- Debt is significant
Borrowings were ₹400.79 crore in March 2026, with debt to equity of 0.83 and net debt to adjusted EBITDA of 2.24 times. ₹190 crore of the fresh issue goes to repay loans (Risk factor 31).
- Part of the money has no named use yet
Up to 35% of the fresh issue can go to acquisitions not yet identified and general corporate purposes (Risk factor 34).
- Some subsidiaries made losses
UK subsidiary Hewland lost ₹3.74 crore in FY26 after a ₹16.83 crore profit in FY25. HYM Drive Systems, Spur Technologies and Hero EDU Systems lost money in all three years (Risk factor 13).
- Very low cost for the main seller
O P Munjal Holdings, which sells up to ₹395 crore of shares, has an average cost of ₹0.03 a share (Risk factor 78).
Strengths
- Electric vehicle sales growing
Revenue from EV products rose from ₹128.09 crore (12.03% of revenue) in FY24 to ₹273.29 crore (23.00%) in FY26 (RHP, Our Business).
- Profit rising
Profit rose from ₹17.04 crore in FY24 to ₹32.80 crore in FY25 and ₹41.17 crore in FY26. FY24 included a ₹39.46 crore non-cash ESOP charge (RHP, Restated financial information).
- Margins improving
EBITDA margin rose from 8.11% in FY24 to 12.44% in FY26, and gross margin from 39.40% to 41.69% (RHP, Basis for Offer Price KPIs).
- Global customers and plants
41.36% of FY26 revenue came from outside India. It supplies BMW, Ducati and enviolo, and runs six plants in India, the UK and Thailand (RHP, Our Business).
- Spends on research
R&D spend was ₹89.59 crore in FY26, or 7.54% of revenue (RHP, Basis for Offer Price).
What Hero Motors does
Hero Motors designs and makes powertrain parts: gearboxes, transmissions, electric motors and drive units for two-wheelers, performance cars, e-bikes and other vehicles. It also makes sheet metal and tube parts, mainly for vehicle makers.
It started operations in 2001 and is based in Ludhiana, Punjab, with a corporate office in Noida. It owns a majority of UK gearbox maker Hewland, has a motor joint venture with Yamaha, and had six plants in India, the UK and Thailand in March 2026. Its promoters are Pankaj Munjal, Charu Munjal, Abhishek Munjal and O P Munjal Holdings.
Listing and subscription
Hero Motors IPO subscription status
NSE IPO details, final figuresListing day
Our calculation: gain vs upper price- Issue price
- ₹84
- Listing price
- ₹82
- Gain at open
- −2.4%
- Day close
- ₹98.4
Subscription
- Total
- 6.66x
- Retail
- 8.23x
- Updated
- 18 Sep 2026, 5:00 pm IST
- QIB50% of offer1.49x
- NII15% of offer9.86x
- Big NII8.11x
- Small NII13.36x
- Retail35% of offer8.23x
- Total6.66x
As of 18 Sep 2026, 5:00 pm IST. Times subscribed is a fact about demand, not a sign of quality. Share of offer is from the RHP offer structure.
Grey market premium. GMP is unofficial. It is not regulated or published by any exchange. If we show it, it carries its source and time, never as a forecast. What GMP means
Price and lots
Hero Motors IPO price band, lot size and issue size
RHP cover page and The Offer (p. 64). Share counts are our calculation at the issue price of ₹84.| Issue price | ₹84 |
| Lot size | 178 shares |
| Issue size | ₹1,000 crore at the upper price |
| Fresh issue | ₹600 crore |
| Offer for sale | ₹400 crore by promoter O P Munjal Holdings (up to ₹395 crore) and promoter group member Hero Cycles Limited (up to ₹5 crore) |
| Face value | ₹10 per share |
| Issue type | Book built, fresh issue and offer for sale |
Where the money goes
Percentages are our calculation.
Who gets how much of the net offer
What the company will do with the money
RHP, Objects of the Offer (p. 114 to 116)| Object of the issue | ₹ crore |
|---|---|
| Repay or prepay company borrowings | 190.00 |
| Equipment to expand the Gautam Buddha Nagar, Uttar Pradesh plant | 200.00 |
| Unidentified acquisitions and general corporate purposes (amount not stated; at most 35% of the fresh issue) | |
| Offer for sale by promoter sellers. The company receives none of this money | 400.00 |
Minimum and maximum investment
Our calculation: at ₹84 per share| Category | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min)Minimum application | 1 | 178 | ₹14,952 |
| Retail (max) | 13 | 2,314 | ₹1,94,376 |
| Small NII (min) | 14 | 2,492 | ₹2,09,328 |
| Small NII (max) | 66 | 11,748 | ₹9,86,832 |
| Big NII (min) | 67 | 11,926 | ₹10,01,784 |
Retail bids are capped at ₹2 lakh and small NII bids at ₹10 lakh.
Valuation calculator
Our calculation: inputs from RHP, Restated Consolidated Financial Information and Basis for Offer Price (p. 127 and 128)Set to the issue price, ₹84. Change it to see what you would be paying for.
- Market cap
- ₹3,815 cr
- P/E (FY26, diluted)
- 73.7x
- Price to book
- 7.9x
- Market cap to sales
- 3.2x
- Peer average P/E
- 50.2x
Based on FY26, diluted EPS of ₹1.14, 45.42 crore shares, net worth of ₹481.01 crore (March 2026) and revenue of ₹1,188.35 crore. Shares are after the IPO (our calculation at the issue price of ₹84). The peer average P/E of 50.20x is from the RHP (p. 127), across CIE Automotive India, Endurance Technologies, Sona BLW Precision Forgings, UNO Minda and Varroc Engineering, at 7 Sep 2026 prices.
Financials
Hero Motors financials
RHP, Summary of Financial Information (p. 67 to 69) and KPIs (p. 129), ₹ croreRevenue and EBITDA
Revenue grew 5.66% a year from FY24 to FY26 (RHP, Risk factor 25).
| ₹ crore | FY24 | FY25 | FY26 |
|---|---|---|---|
| Revenue from operations | 1,064.39 | 1,089.59+2.4% | 1,188.35+9.1% |
| EBITDA | 86.28 | 114 | 147.78 |
| EBITDA margin | 8.11% | 10.46% | 12.44% |
| Adjusted EBITDA | 125.74 | 128.82 | 160.24 |
| Profit after tax | 17.04 | 32.80+92.5% | 41.17+25.5% |
| Diluted EPS (₹) | 0.35 | 0.66 | 1.14 |
| Total equity | 374.82 | 426.01 | 481.01 |
| Total borrowings | 304 | 407.62 | 400.79 |
| Cash from operations | 131.97 | 48.34 | 144.04 |
Consolidated figures. There is no stub period. Adjusted EBITDA adds back non-cash ESOP costs of ₹39.46 crore (FY24), ₹14.82 crore (FY25) and ₹10.50 crore (FY26). FY26 profit attributable to the company's owners was ₹43.57 crore. FY26 cash from operations includes a ₹95.70 crore rise in other financial liabilities.
The small figures under revenue and profit are the change from the previous full year, our calculation.
Compared with listed peers
RHP, Basis for Offer Price (p. 128). Peer prices as of 7 Sep 2026.| Company | Revenue (₹ crore) | Diluted EPS (₹) | P/E | RoNW |
|---|---|---|---|---|
| Hero Motors | 1,188.35 | 1.14 | 73.68x at issue price (ours) | 8.53% |
| CIE Automotive India | 9,406.47 | 21.69 | 17.68x | 13.18% |
| Endurance Technologies | 14,595.88 | 67.66 | 40.84x | 15.29% |
| Sona BLW Precision Forgings | 4,449.46 | 10.30 | 76.50x | 10.77% |
| UNO Minda | 19,657.59 | 20.75 | 59.84x | 19.59% |
| Varroc Engineering | 8,890.49 | 14.73 | 56.15x | 18.70% |
The peer average P/E of 50.2x is our calculation, a simple average of the peers listed.
Key performance indicatorsGross margin, PAT margin, Return on equity and more
| Metric | FY24 | FY25 | FY26 |
|---|---|---|---|
| Gross margin | 39.40% | 41.50% | 41.69% |
| PAT margin | 1.60% | 3.01% | 3.46% |
| Return on equity | 4.54% | 7.70% | 8.56% |
| Return on capital employed | 23.23% | 18.84% | 19.77% |
| Net debt to adjusted EBITDA | 1.72 | 2.79 | 2.24 |
| Receivable days | 67 | 68 | 78 |
| Revenue from outside India | 41.28% | 40.94% | 41.36% |
| R&D spend to revenue | 7.45% | 7.09% | 7.54% |
Return on capital employed uses adjusted EBITDA, as defined in the RHP.
RHP, Basis for Offer Price, KPIs (p. 129 and 130)
Company
About Hero Motors
Business
RHP, Our Business (p. 254 and 258) and Risk Factors 1 and 2Powertrain solutions grew from 48.88% of revenue in FY24 to 53.67% in FY26. Europe gave 33.59% of FY26 revenue, while US revenue fell from ₹85.26 crore in FY25 to ₹45.88 crore in FY26.
Revenue by segment, FY26
- Manufacturing plants, March 2026
- 6
- Revenue from EV products, FY26
- 23.00%
- Revenue from outside India, FY26
- 41.36%
- Top 10 customers, FY26
- 72.89%
Key risks
RHP, Risk Factors- Customer concentrationThe top 10 customers gave 72.89% of FY26 revenue.
- Industry dependenceSales depend on two-wheeler, e-bike and motorsport makers.
- Europe exposureEurope gave 33.59% of FY26 revenue.
- Quality claimsA customer recalled a product in FY26, claiming a faulty part.
- DebtLenders' covenants limit some actions, and assets are pledged.
- Subsidiary lossesSeveral subsidiaries made losses in the last three years.
- Steel pricesSteel is the main raw material, and price swings hit margins.
- Currency riskAbout 41% of revenue is from outside India.
Read before you apply puts the most important of these beside the strengths.
Promoters and shareholdingAfter-IPO percentages are our calculation at the issue price of ₹84.
O P Munjal Holdings is the largest holder. Promoters and the promoter group together hold 84.67% on a fully diluted basis (Risk factor 59). After-IPO percentages are our calculation at the issue price of ₹84.
| Shareholder | Before IPO | Selling (amount) | After IPO (ours) |
|---|---|---|---|
| O P Munjal Holdings (promoter) | 71.35% | Up to ₹395.00 crore | 49.78% |
| South Asia Growth Invest LLC | 12.24% | Nil | 10.32% |
| Bhagyoday Investments (promoter group) | 6.26% | Nil | 5.28% |
| Om Prakash Pankaj Munjal AOP (promoter group) | 2.75% | Nil | 2.32% |
| Pankaj Munjal (promoter) | 2.46% | Nil | 2.07% |
| Hero Cycles Limited (promoter group) | 2.03% | Up to ₹5.00 crore | 1.58% |
| Amit Gupta (MD and CEO) | 1.46% | Nil | 1.23% |
RHP, Capital Structure (p. 93) and cover page
IndustryGears and transmissions market CY2025: ₹3,40,000 to ₹3,50,000 crore
- Gears and transmissions market CY2025
- ₹3,40,000 to ₹3,50,000 crore
- Expected growth CY2025 to CY2031
- 6% to 8% a year
- Two-wheeler gears and transmissions CY2025
- ₹43,000 to ₹44,000 crore
- Two-wheeler segment expected by 2031
- ₹58,000 to ₹60,000 crore
This market combines India with the US, EU and ASEAN (gear components) and India and abroad (gearbox assembly), so it is not the Indian market alone. The report gives figures in ₹ billion; ₹ crore is our conversion.
CRISIL Intelligence report 'Powertrain Solutions and Alloys & Metallics Components' in the RHP, commissioned and paid for by the company (p. 238)
LitigationAgainst the company: criminal, tax and regulatory: 19 · By the company: criminal and civil: 2 · Against directors: criminal and civil: 2
| Type | Cases | Amount |
|---|---|---|
| Against the company: criminal, tax and regulatory | 19 | ₹0.16 crore |
| By the company: criminal and civil | 2 | Not quantified |
| Against directors: criminal and civil | 2 | Not quantified |
| Against promoters: criminal, regulatory and civil | 4 | Not quantified |
| Against subsidiaries: tax | 1 | ₹0.001 crore |
RHP, Outstanding Litigation and Material Developments (p. 479 and 480)
Company detailsLegal name, registered office, CIN and website
| Legal name | Hero Motors Limited |
| Incorporated | 30 April 1998, as Hero Briggs & Stratton Auto Private Limited; renamed Hero Motors Limited in 2004 |
| Promoters | Pankaj Munjal, Charu Munjal, Abhishek Munjal, O P Munjal Holdings |
| Chairman | Pankaj Munjal |
| Managing director and CEO | Amit Gupta |
| Corporate office | Noida, Uttar Pradesh |
RHP, General Information
Lead managers and registrar
RHP cover pageAllotment
Hero Motors IPO allotment status
Out from 21 Sep 2026- Open the registrar's pageKFin Technologies Limited is the registrar. Open its allotment page.
- Select Hero Motors LimitedIt appears once the basis of allotment is final.
- Enter your PAN, application number or DP IDUse the details you applied with.
- Or check on the exchangeBSE's application status page works too.
Documents
Questions
Hero Motors IPO FAQs
When does the Hero Motors IPO open and close?
The Hero Motors IPO opens on Wednesday, 16 September 2026 and closes on Friday, 18 September 2026. Anchor bidding is on 15 September 2026. UPI mandates must be approved by 5 pm on the closing day.
What is the Hero Motors IPO price band and lot size?
The price is ₹84 per share. The lot size is 178 shares, so the minimum bid is 178 shares, or ₹14,952 at the upper price.
What is the Hero Motors IPO size?
The Hero Motors IPO is of ₹1,000 crore at the upper end of the price band. It is a fresh issue and offer for sale by promoter O P Munjal Holdings (up to ₹395 crore) and promoter group member Hero Cycles Limited (up to ₹5 crore).
What is the Hero Motors IPO allotment date?
Allotment is on Monday, 21 September 2026. Refunds and demat credit are expected on 22 September 2026.
What is the Hero Motors IPO listing date?
Hero Motors shares are due to list on BSE and NSE on Wednesday, 23 September 2026.
Who is the registrar of the Hero Motors IPO?
KFin Technologies Limited is the registrar. Allotment status can be checked on its website or on BSE using your PAN or application number.
What does Hero Motors do?
Hero Motors is a Ludhiana-based maker of gearboxes, transmissions, e-bike drive systems and sheet metal parts for vehicle makers in India, Europe, the US and Southeast Asia.
How much money is Hero Motors raising in the IPO?
Up to ₹1,000 crore. Up to ₹600 crore is new shares for the company and up to ₹400 crore is an offer for sale by promoter sellers.
Who is selling shares in the Hero Motors IPO?
Promoter O P Munjal Holdings (up to ₹395 crore) and promoter group member Hero Cycles Limited (up to ₹5 crore).
What will Hero Motors do with the IPO money?
₹190 crore to repay loans and ₹200 crore for equipment at its Gautam Buddha Nagar plant. The rest goes to acquisitions not yet identified and general corporate purposes.
What does Hero Motors make?
Gearboxes, transmissions, electric motors and e-bike drive units, plus sheet metal and tube parts for vehicle makers.
When were the Hero Motors IPO dates?
The IPO was open from 16 to 18 September 2026, with listing expected on 23 September 2026 (RHP).
Is Hero Motors the same company as Hero MotoCorp?
No. The RHP names Hero MotoCorp as one of its top 10 customers. Hero Motors' promoters are Pankaj Munjal, Charu Munjal, Abhishek Munjal and O P Munjal Holdings.
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