Hero Motors Ltd IPO to Open on Sept 16, Price Band Set at ₹79–84 Per Share

Hero Motors Ltd, the automotive components and OEM business of the Hero Group, has announced details of its ₹1000-crore IPO, set to list on the BSE and NSE on September 16. The company says it aims to raise ₹600 crore through the issue of fresh equity shares, while another ₹400 crore will come from an offer-for-sale of existing promoters’ holdings. ₹395 crore will come from O P Munjal Holdings, which will reduce its current 70.6 percent stake to 49.34 percent. The other ₹5 crore from sister company Hero Cycles, reducing its holdings from 2 percent to 1.56 percent.

The price band for the offering has been set at ₹79–84 per share of face value ₹10, based on a company valuation of up to ₹3,815.4 crore. Bids can be made in multiples of 178 shares. The price-to-earnings ratio is 69.3X–73.68X. Approval from SEBI was received in September last year. Institutional investors will be able to submit bids for anchor positions on September 15, and the IPO will close on September 18. Share allotment is likely to be decided by September 21.  

Interestingly, Hero Motors had previously moved to float a ₹900 crore IPO in 2024, but cancelled it without confirming any reason. 

The company says it will use part of the proceeds of the IPO to repay debt, which currently stands at ₹289.5 crore, with another ₹200 crore allocated to upgrading and expanding its Uttar Pradesh manufacturing facility. 

Hero Motors Ltd declared gross profit of ₹49.55 crore in FY 2026, up from ₹45.21 crore in FY 2025. Revenue was ₹1,188.35 crore, up from ₹1,089.56 crore in the same period, of which 23 percent came from e-mobility solutions. Gross margin came in at 41.69 percent, up slightly from 41.5 percent. Capex shrank to 92.25 crore from 152.4 crore in the previous fiscal, and adjusted EBITDA rose to 16.02 crore, from 12.88 crore.

Describing itself as one of India’s leading automotive technology companies, Hero Motors Ltd is engaged in designing, developing, manufacturing and prototyping for global automotive OEMs, particularly bike powertrain solutions, gears and transmissions, and alloy and metallic components. OEM clients include BMW AG, Hero MotoCorp, Ducati Motor Holding, River Mobility, HWA AG, Formula Motorsport, Enviolo International, TACO Punch Powertrain, HummingbirdEV, and unnamed US and Europe-based EV manufacturers. 

The company caters to motorsport and high-performance vehicles as well as e-bikes and the aerospace and marine industries. It operates six manufacturing units and two R&D facilities in India, the UK and Thailand, with more than 1,000 employees overall.  

The listing comes after similar IPOs floated by metal recycling firm Ardee Industries and component maker Dhoot Transmissions.