Hero Motors IPO: ₹1,000 Crore Issue Opens September 16 At ₹79-84 Price Band
- 10th September 2026
- 10:00 AM
- 5 min read
Summary
Hero Motors' ₹1,000 crore initial public offering (IPO) will open for subscription on 16 September 2026 and close on 18 September 2026. The price band has been fixed at ₹79 to ₹84 per share. The issue includes a fresh issue of up to ₹600 crore and an offer for sale of up to ₹400 crore by promoter entities.Mumbai | 10 September 2026
Hero Motors’ ₹1,000 crore IPO will open for public subscription on 16 September 2026 and close on 18 September 2026. The price band has been fixed at ₹79 to ₹84 per share, valuing the company at ₹3,815.41 crore at the upper price band. The O P Munjal Holdings-promoted company plans to raise up to ₹600 crore through a fresh issue of shares, while promoters will sell shares worth up to ₹400 crore through an offer for sale (OFS). The one-day anchor investor bidding will open on 15 September 2026.
What Is The Structure Of The Hero Motors IPO?
Hero Motors’ IPO is a bookbuilding issue combining a fresh issue and an offer for sale, together making up the ₹1,000 crore issue size. O P Munjal Holdings will sell shares worth ₹395 crore through the OFS, while Hero Cycles will sell shares worth ₹5 crore. Investors can bid for a minimum of 178 equity shares, and in multiples of 178 shares thereafter.
| Detail | Figure |
| Issue type | Bookbuilding IPO |
| Price band | ₹79 to ₹84 per share |
| Face value | ₹10 per share |
| Lot size | 178 shares |
| Minimum investment (retail, 1 lot) | ₹14,952 |
| Maximum investment (retail, 13 lots) | ₹1,94,376 |
| Fresh issue | 7,14,28,571 shares (up to ₹600 crore) |
| Offer for sale | 4,76,19,047 shares (up to ₹400 crore) |
| Total issue size | 11,90,47,618 shares (up to ₹1,000 crore) |
| Company valuation (at upper price band) | ₹3,815.41 crore |
| Listing at | BSE, NSE |
| Registrar | Kfin Technologies Ltd |
| Lead managers | ICICI Securities Ltd, Dam Capital Advisors Ltd, JM Financial Ltd |
Hero Motors’ pre-issue shareholding stands at 38,27,87,005 shares, rising to 45,42,15,576 shares after the issue. Following the issue, O P Munjal Holdings’ shareholding will decline to 49.34% from 70.6%, and Hero Cycles’ shareholding will decline to 1.56% from 2%.
What Are The Key Dates for The Hero Motors IPO?
Hero Motors’ IPO opens for bidding on 16 September 2026 and closes on 18 September 2026, with anchor investor bidding a day earlier, on 15 September 2026. Allotment is expected to be finalised by 21 September 2026, refunds and credit of shares to demat accounts are expected on 22 September 2026, and listing is tentatively scheduled for 23 September 2026.
| Event | Date |
| Anchor investor bidding | 15 September 2026 |
| Bidding opens | Wednesday, 16 September 2026 |
| Bidding closes | Friday, 18 September 2026 |
| Basis of allotment (expected) | Monday, 21 September 2026 |
| Refund initiation | Tuesday, 22 September 2026 |
| Credit of shares to demat | Tuesday, 22 September 2026 |
| Listing date (tentative) | Wednesday, 23 September 2026 |
What Changed Since Hero Motors Filed Its DRHP?
Hero Motors filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) in June 2025, which the regulator approved in September 2025. The company has since cut its fresh issue size to ₹600 crore from ₹800 crore proposed in the DRHP. It has also revised the OFS structure, with Bhagyoday Investments withdrawing its planned ₹5 crore share sale and O P Munjal Holdings raising its OFS component by the same amount, to ₹395 crore from ₹390 crore.
What Does Hero Motors Do?
Incorporated in April 1998, Hero Motors is an automotive technology company that designs, develops, manufactures and supplies engineered powertrain solutions to automotive original equipment manufacturers (OEMs) across the United States, Europe, India and the Association of Southeast Asian Nations (ASEAN) region. It offers integrated solutions for both electric and non-electric powertrains, serving two-wheelers, performance automotive, e-bikes, off-road vehicles, electric and hybrid cars, heavy-duty vehicles and eVTOL (electric vertical take-off and landing) applications.
The company’s operations are divided into two segments: Powertrain Solutions, comprising Gears and Transmissions (G&T) and Bike Powertrain (BPT), and Alloys and Metallics (A&M), which supplies sheet metal and tubular assemblies and components primarily to automotive OEMs.
What Is Hero Motors’ Financial Performance?
Hero Motors’ total income rose 9% to ₹1,216.74 crore for the year ended March 2026, from ₹1,111.23 crore in the previous year. Profit after tax increased 26% to ₹41.17 crore, from ₹32.80 crore, over the same period. EBITDA rose to ₹147.78 crore, from ₹114.00 crore, while net worth increased to ₹482.45 crore, from ₹423.95 crore.
How Will Hero Motors Use The IPO Proceeds?
Hero Motors plans to use the net proceeds from the fresh issue as follows:
- Repayment, prepayment or redemption of outstanding borrowings: ₹190 crore
- Capital expenditure for capacity expansion at its Gautam Buddha Nagar facility in Uttar Pradesh: ₹200 crore
- Funding inorganic growth through unidentified acquisitions and other strategic initiatives, and general corporate purposes
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