₹1,000 crore issue includes a ₹600 crore fresh issue and ₹400 crore offer for sale; minimum retail investment set at ₹14,952
New Delhi : Hero Motors Ltd, a manufacturer of automotive components and advanced mobility solutions, is set to launch its ₹1,000 crore initial public offering (IPO) next week. The company has fixed the IPO price band at ₹79 to ₹84 per equity share.
The public issue will open for subscription on September 16, 2026, and close on September 18. The anchor investor bidding will take place on September 15, a day before the issue opens for retail and other investors. The shares are expected to be listed on the BSE and NSE on September 23.
Hero Motors IPO: Issue Structure
The ₹1,000 crore IPO comprises two components:
- Fresh Issue: ₹600 crore
- Offer for Sale (OFS): ₹400 crore
The fresh issue has been reduced from the ₹800 crore proposed earlier in the company’s DRHP, while the OFS component has been revised accordingly. Under the OFS, promoter entities will sell shares worth up to ₹400 crore.
At the upper end of the price band, the company is expected to command a valuation of around ₹3,815 crore.
Hero Motors IPO: Lot Size and Minimum Investment
The minimum bid has been fixed at 178 shares. Investors can bid in multiples of 178 shares thereafter.
At the upper price band of ₹84, a retail investor will need to invest at least ₹14,952 for one lot.
The retail portion accounts for 35% of the issue, while qualified institutional buyers (QIBs) have been allocated 50%. The remaining portion is reserved for non-institutional investors.
Where Will the ₹600 Crore Fresh Issue Money Go?
Hero Motors plans to use the proceeds from the fresh issue primarily for reducing debt and expanding its manufacturing capacity.
₹190 Crore for Debt Repayment
The company plans to use around ₹190 crore from the fresh issue proceeds to repay or prepay certain outstanding borrowings. Hero Motors had total outstanding borrowings of around ₹289.5 crore as of July 2026.
₹200 Crore for Capacity Expansion
Another ₹200 crore is earmarked for purchasing equipment required to expand capacity at the company’s manufacturing facility in Gautam Buddha Nagar, Uttar Pradesh.
The remaining funds will be used for inorganic growth initiatives, including potential acquisitions, and for general corporate purposes.
Hero Motors’ Business and Global Customers
Hero Motors provides engineered powertrain solutions, transmission systems, drive units and other components to automotive original equipment manufacturers.
The company has manufacturing facilities across India, the United Kingdom and Thailand and serves customers in markets including the US, Europe, India and the ASEAN region.
Its global customer base includes well-known automotive names such as BMW and Ducati, among others.
Hero Motors Financial Performance
The company reported a profit of ₹43.6 crore for FY2025-26, compared with ₹25.2 crore in the previous financial year, marking a rise of around 72.9%.
Revenue during the year increased by about 9.1% to ₹1,188.4 crore, from ₹1,089.6 crore in the previous year.
Hero Motors IPO: Important Dates
| Particular | Details |
|---|---|
| IPO Open Date | September 16, 2026 |
| IPO Close Date | September 18, 2026 |
| Anchor Bidding | September 15, 2026 |
| Price Band | ₹79–₹84 per share |
| Issue Size | ₹1,000 crore |
| Fresh Issue | ₹600 crore |
| OFS | ₹400 crore |
| Lot Size | 178 shares |
| Minimum Investment | ₹14,952 |
| Allotment | Expected September 21, 2026 |
| Listing | Expected September 23, 2026 |
| Exchanges | BSE and NSE |
What Investors Should Keep in Mind
The Hero Motors IPO comes at a time when investor interest in India’s primary market remains strong. However, an IPO is not automatically a good investment simply because a company has established customers or operates in a growing industry.
Investors should carefully examine the company’s financial performance, valuation, customer concentration, debt position, business risks and the details provided in the offer documents before making an investment decision.
Disclaimer: This article is for informational purposes only and should not be considered investment advice. Investors should review the company’s official offer documents and consult a SEBI-registered financial adviser before investing.
