The Hero Motors IPO is scheduled to open in the primary market on September 16, 2026, with the company setting the price band at ₹79 to ₹84 per equity share. The ₹1,000-crore public issue will be open for subscription until September 18, while anchor investors can bid on September 15.
Hero Motors, which operates in automotive technology and powertrain solutions, plans to raise money through a combination of a fresh issue and an offer for sale (OFS). Based on the upper price band of ₹84, the company’s valuation is expected to be around ₹3,815 crore.
The IPO has also moved ahead in the regulatory process, with Hero Motors filing its Red Herring Prospectus (RHP) with the Securities and Exchange Board of India (SEBI) on September 10, 2026.
Hero Motors Company Overview
Investors should not confuse Hero Motors Limited with Hero MotoCorp Limited. They are separate companies.
Hero Motors operates in the automotive technology and auto-components space. The company designs, develops, manufactures, and supplies engineered powertrain solutions to automotive original equipment manufacturers (OEMs).
Its products and solutions cater to applications such as:
- Two-wheelers
- E-bikes
- Electric vehicles
- Performance vehicles
- Off-road vehicles
- Heavy-duty vehicles
- Motorsport
- Other emerging mobility applications
The company has a global customer base that includes names such as BMW AG, Ducati Motor Holding, Enviolo International and HWA AG, according to information disclosed around the IPO.
Hero Motors has manufacturing facilities across India, the UK and Thailand, along with technology centres in India and the UK. The company also plans to add manufacturing capacity in India.
Hero Motors Financial Performance
| Financial Year | Revenue (₹ crore) | Net Profit (₹ crore) |
| FY24 | 1,064.39 | 13.42 |
| FY25 | 1,089.59 | 25.20 |
| FY26 | 1,188.35 | 43.57 |
The company’s revenue rose from ₹1,089.59 crore in FY25 to ₹1,188.35 crore in FY26, an increase of around 9%. Net profit also saw a strong rise during the same period.
Overall, Hero Motors has improved both its revenue and profitability. However, investors should also look at the company’s profit levels in relation to the valuation expected at the IPO price before making an investment decision.
Hero Motors IPO: Key Details
| Particulars | Details |
| IPO Name | Hero Motors IPO |
| IPO Opening Date | September 16, 2026 |
| IPO Closing Date | September 18, 2026 |
| Price Band | ₹79–₹84 per share |
| Face Value | ₹10 per share |
| Total Issue Size | ₹1,000 crore |
| Fresh Issue | ₹600 crore |
| Offer for Sale (OFS) | ₹400 crore |
| Lot Size | 178 shares |
| Minimum Investment | ₹14,952 |
| Anchor Investor Bidding Date | September 15, 2026 |
| Basis of Allotment | September 21, 2026 (tentative) |
| Refund Initiation | September 22, 2026 (tentative) |
| Demat Credit | September 22, 2026 (tentative) |
| Expected Listing Date | September 23, 2026 |
| Listing Exchanges | BSE and NSE |
| Book Running Lead Managers | ICICI Securities, DAM Capital Advisors and JM Financial |
| Registrar | KFin Technologies |
The Hero Motors IPO will require investors to bid for a minimum of 178 shares. At the upper price band of ₹84 per share, investors will need at least ₹14,952 to apply for one lot. After that, they can place bids in multiples of 178 shares.
Hero Motors IPO: Issue Structure
The ₹1,000-crore Hero Motors IPO will be divided into two parts:
- Fresh issue: ₹600 crore
- Offer for Sale (OFS): ₹400 crore
The fresh issue will provide new funds to Hero Motors, while the money raised through the OFS will go to the existing shareholders selling their shares.
As per the revised issue structure, O P Munjal Holdings will sell shares worth ₹395 crore, while Hero Cycles will offer shares worth ₹5 crore through the OFS.
Hero Motors had initially planned a larger fresh issue in its Draft Red Herring Prospectus (DRHP). However, the company later reduced the fresh issue size to ₹600 crore.
When Will the Hero Motors IPO Open?
The Hero Motors IPO date for public subscription is September 16, 2026. Investors can apply for the IPO from September 16 to September 18.
Here is the complete Hero Motors IPO schedule:
| IPO Activity | Date |
| Anchor investor bidding | September 15, 2026 |
| IPO opens | September 16, 2026 |
| IPO closes | September 18, 2026 |
| Basis of allotment | September 21, 2026 |
| Refunds | September 22, 2026 |
| Shares credited to demat accounts | September 22, 2026 |
| Expected listing | September 23, 2026 |
These dates are based on the current IPO schedule and could change depending on the final timetable mentioned in the offer documents.
Why Is Hero Motors Raising Money Through the IPO?
A major portion of the fresh issue proceeds will go towards reducing the company’s debt and expanding its manufacturing capacity.
Hero Motors plans to use the funds in the following ways:
1. Rs. 190 crore for debt repayment
The company plans to use ₹190 crore from the fresh issue to repay or prepay certain outstanding loans. This could help lower its overall debt and reduce interest expenses.
2. Rs. 200 crore for capacity expansion
Hero Motors has allocated ₹200 crore to purchase equipment for expanding capacity at its Gautam Buddha Nagar facility in Uttar Pradesh. The investment is expected to support higher production capacity and future business growth.
3. Remaining funds
The balance of the IPO proceeds will be used for inorganic growth, potential acquisitions, strategic initiatives, and general corporate purposes.
For investors, the planned use of funds is an important aspect of the IPO. A sizeable portion of the fresh capital is directed towards debt reduction and capacity expansion, rather than being used solely for general corporate needs.
What Are the Risks for Hero Motors IPO Investors?
Before applying for the Hero Motors IPO, investors should carefully review the risks mentioned in the company’s offer documents.
1. High customer concentration
Hero Motors depends on a limited number of major customers for a significant share of its revenue. If the company loses an important customer or receives fewer orders from key clients, its financial performance could be affected.
2. Dependence on the automotive industry
The company’s business is closely linked to the automotive sector. A slowdown in vehicle production, weaker demand, supply-chain issues, or rapid changes in automotive technology could impact its growth and profitability.
3. International exposure
Hero Motors also earns revenue from overseas markets. As a result, the company faces risks related to currency fluctuations, economic conditions in international markets, and geopolitical developments.
4. Valuation risk
The IPO valuation is another important factor for investors. Investors should compare Hero Motors’ valuation with those of other listed automotive-component companies before deciding whether the IPO is attractively priced.
5. Debt
Hero Motors plans to use ₹190 crore from the fresh issue proceeds to repay or prepay debt. However, the company will continue to have outstanding borrowings. Investors should monitor whether the reduction in debt leads to a meaningful improvement in its financial position.
6. Execution risk
The company plans to expand its Gautam Buddha Nagar facility and explore inorganic growth opportunities. The success of these plans will depend on factors such as demand, execution, efficient use of capital, and the company’s ability to generate satisfactory returns from these investments.
Who can apply for the Hero Motor IPO?
The Hero Motors IPO will be available to eligible investors under the applicable IPO categories.
The issue will be divided among investor groups as follows:
- A share of up to 50% of the IPO Shares is reserved for Qualified Institutional Buyers (QIBs)
- Non-Institutional Investors (NIIs) are allotted 15% or more of the IPO shares.
- At least 35% is reserved for retail investors
The Hero Motors IPO will raise ₹1,000 crore at a price band of ₹79–₹84 per share, with funds coming through a fresh issue and OFS. While the company has global customers and expansion plans, investors should carefully assess its valuation, customer concentration, debt, and execution risks before investing.
Sources: msn.com
