Hero Motors IPO: Automotive Technology Firm Fixes Price Band At Rs 79-84, Should You Apply

The initial public offering (IPO) of Hero Motors is scheduled to open for subscription on September 16, 2026. Ahead of the opening of the subscription window, the company has announced the price band for its public issue. The IPO consists of a fresh issue of shares and an offer for sale (OFS) component as well.

Hero Motors IPO: Offer Size And Selling Shareholders

The IPO includes a fresh issue of 71.40 million shares aggregating to Rs 600 crore and an OFS of 47.60 million shares aggregating to Rs 400 crore. The promoters of the company include Pankaj Munjal, Charu Munjal, Abhishek Munjal, and OP Munjal Holdings. The selling shareholders in the OFS include OP Munjal Holdings (aggregating up to Rs 395 crore) and Hero Cycles (aggregating up to Rs 5 crore). The shareholding of the promoters stood at 84.67 per cent prior to the issue and will reduce to 61.63 per cent once the stock lists.

Hero Motors IPO: Price Band And Lot Size

Hero Motors has set the price band for its public issue at Rs 79-84 per share. Retail investors can apply for a minimum lot of 178 shares, amounting to an investment of Rs 14,952. Small non-institutional investors (sNIIs) can apply for a minimum of 14 lots or 2,492 shares, aggregating to Rs 2,09,328, while big NIIs (bNIIs) have to bid for a minimum of 67 lots or 11,926 shares, amounting to Rs 10,01,784.

Hero Motors IPO: Reservation

The auto components maker has reserved not more than 50 per cent of the offer for qualified institutional buyers (QIBs), not less than 15 per cent NIIs, and not less than 35 per cent of the offer for retail individual investors (RIIs).

Hero Motors IPO: GMP

The current trends in the grey market premium (GMP) for Hero Motors shares indicate a nil premium above the upper end of the price band. Since the upper end of the price band is Rs 84, the estimated listing price for the stock is Rs 84.

Hero Motors IPO: Key Financials

The company’s total income stood at Rs 1,216.74 crore in the financial year ended March 31, 2026, up by 9.49 per cent compared to Rs 1,111.23 crore in the preceding fiscal. The company posted a profit after tax (PAT) of Rs 41.17 crore in the same period, an increase of 25.51 per cent compared to the preceding fiscal, in which it posted a PAT of Rs 32.80 crore.

Hero Motors: Business Model

Hero Motors is engaged in the manufacturing of a range of electrified and non-electrified powertrains and alloys, and metallics components. These products are required to meet precise and specific requirements, catering primarily to the two-wheeler, e-bike, motorsport, and premium performance automotive sectors globally.

Hero Motors: Competitors

Hero Motors competes with other companies within the powertrain solutions and alloys, and metallics industry. Key competitors include ZF Friedrichshafen, Musashi, BorgWarner, GKN, Bafang, Mahle, Shimano, Rohloff, Badve Group, Sandhar Technologies, and Magnum. In the domestic market, the company’s listed peers include UNO Minda, Endurance Technologies, Varroc Engineering, Sona Blw Precision Forgings, and CIE Automotive.

Hero Motors IPO: Should You Apply?

Investors should assess the risks and strengths related to the company’s business before applying for the shares.

Hero Motors IPO: Key Risks

• The company relies significantly on its top 10 customers, accounting for 72.89 per cent of its revenue from operations in fiscal 2026, which poses a risk if any key client relationships are lost.

• The company depends on a limited set of suppliers for raw materials, such as steel, which exposes it to risks from supply chain disruptions.

•  A major chunk of the company’s revenue from operations is generated from geographies outside India, such as Europe, exposing it to risks associated with regulatory changes in those territories.

Hero Motors IPO: Key Strengths

• The company has a diversified product portfolio, which includes gears and transmissions, hub motors, and alloys and metallics components.

•  Hero Motors has a presence across multiple geographies and has manufacturing facilities in India, the UK, and Thailand.

• The company has a strong focus on the EV and e-bike segments, which are fast growing.

Hero Motors IPO: Objective

Hero Motors plans to use Rs 200 crore of the net proceeds for capital expenditure. These funds will be utilised for purchasing equipment for expanding capacity at its facility in Gautam Buddha Nagar, Uttar Pradesh. Additionally, Rs 190 crore will be used towards repayment or prepayment of certain outstanding borrowings, with the remaining funds will be allocated towards funding inorganic growth through unidentified acquisitions and for general corporate purposes.