💡 Overview & Quick Summary
Hero Motors Limited IPO Summary: Hero Motors Limited is launching an Initial Public Offering (IPO) of ₹1,000.00 Crore (Fresh Issue: ₹600.00 Cr; Offer for Sale: ₹400.00 Cr for 11,90,47,618 equity shares of face value ₹10 each) priced in a band of ₹79 to ₹84 per share, open for subscription from September 16 to September 18, 2026. The company is one of India's leading automotive technology companies designing, developing, manufacturing, and supplying highly engineered powertrain solutions across two business segments: Powertrain Solutions (Gears & Transmissions and Bike Powertrain) and Alloys & Metallics, serving marquee OEMs including BMW, Ducati, Hero MotoCorp, Formula Motorsport, HWA, and enviolo. Operating six manufacturing facilities across India, the UK, and Thailand, plus two technology centres, its revenue from global e-mobility rose to 23.00% in FY2026 (up from 12.03% in FY2024), while R&D spend stood at ₹89.59 crore (7.54% of revenue). Sushil Finance notes steady top-line growth (FY26 Total Income at ₹1,216.74 Cr, EBITDA margin at 12.44%, PAT surging 72.9% to ₹43.57 Cr, diluted EPS of ₹1.14, and RONW of 8.53%). While the issue is priced at ~73.7x FY2026 diluted EPS at the upper band above the peer average P/E of 50.2x (17.68x-76.50x) with Net Debt/EBITDA at 2.24x, Sushil Finance officially recommends: "We recommend to invest for listing gains."
1. IPO Overview
Hero Motors Limited has announced the issue parameters for its upcoming Initial Public Offering. The issue opens for subscription on Sep 16, 2026, and closes on Sep 18, 2026. The price band has been fixed at ₹79 to ₹84 Per Share with a face value of ₹10/- per share. The total public offer comprises 11,90,47,618 equity shares aggregating up to ₹1,000.00 crore.
| Issue Parameter |
Details |
| Price Band |
₹79 to ₹84 Per Share |
| Issue Opens on |
Sep 16, 2026 |
| Issue Closes on |
Sep 18, 2026 |
| Lot Size |
178 Shares & in Multiples thereafter |
| Issue Size |
₹1,000.00 Cr. |
| No of Shares |
11,90,47,618 |
| Face Value |
₹10/- |
| Listing |
BSE & NSE |
| Lead Managers |
ICICI Securities Ltd., DAM Capital Advisors Ltd., JM Financial Ltd. |
| Registrar |
Kfin Technologies Ltd |
2. Key IPO Details & Issue Breakup
The ₹1,000.00 crore public offering comprises a fresh issuance of shares and an Offer for Sale (OFS) by existing selling shareholders. The offer structure and category allocations across Qualified Institutional Buyers (QIB), Non-Institutional Investors / High Net-Worth Individuals (HNI), and Retail Individual Investors are detailed below:
Offer Structure
| Issuance |
in Cr. |
| Fresh Issue |
600.00 |
| Offer for Sale |
400.00 |
| Total |
1,000.00 |
Issue Breakup
| Reservation for |
% of Issue |
in Cr. (at upper band) |
| QIB |
50% |
500.00 |
| HNI |
15% |
150.00 |
| RETAIL |
35% |
350.00 |
| TOTAL |
100% |
1,000.00 |
3. Company Overview
Hero Motors Limited is one of India's leading automotive technology companies, engaged in designing, developing, manufacturing and supplying highly engineered powertrain solutions to automotive OEMs across the United States, Europe, India and the ASEAN region.
The Company operates through two business segments:
- Powertrain Solutions: Gears & Transmissions and Bike Powertrain.
- Alloys & Metallics
Its product solutions serve applications spanning two-wheelers, performance automotive, e-bikes, off-road vehicles, electric and hybrid cars, heavy-duty vehicles and eVTOL aircraft.
Its marquee customer portfolio includes global names such as BMW, Ducati, Hero MotoCorp, Formula Motorsport, HWA, enviolo and leading global e-bike manufacturers.
As of March 31, 2026, the Company operated six manufacturing facilities across India, the United Kingdom and Thailand, supported by two dedicated technology centres located in Southam, UK and Gautam Buddha Nagar, Uttar Pradesh.
4. Objects of the Issue
The Company proposes to utilise the Rs. 600 crore Fresh Issue proceeds primarily towards:
- Debt Repayment: Repayment/prepayment of certain outstanding borrowings and accrued interest amounting to Rs. 190 crore.
- Capital Expenditure: Purchase of equipment for expansion in capacity of its Gautam Buddha Nagar, Uttar Pradesh facility amounting to Rs. 200 crore.
- Inorganic Growth & General Corporate Purposes: Balance towards funding inorganic growth through unidentified acquisitions, other strategic initiatives and general corporate purposes.
The Company will not receive any proceeds from the Rs. 400.00 crore Offer for Sale, which will accrue to the selling shareholders after applicable expenses and taxes.
5. Key Investment Highlights
- Among India's Leading E-Mobility Solutions Providers: Revenue from sales to the global e-mobility industry was 23.00% of revenue from operations in FY2026 up from 16.12% in FY2025 and 12.03% in FY2024, on the back of diversified powertrain offerings for EVs and ICEs.
- Growing Presence in Electric Bikes & Premium Two-Wheelers: The Company partners with premium two-wheeler OEMs including BMW, Ducati and a leading American two-wheeler OEM amid a global e-bike market projected to grow at a 6-9% CAGR through 2031.
- Longstanding Relationships with Premier Global OEMs: The Company serves global two-wheeler OEMs, motorsport players and commercial/off-road OEMs, with international customers contributing 41.36% of FY2026 revenue.
- Advanced, Geographically Diversified Infrastructure: Six manufacturing facilities across India, the UK and Thailand, strategically located for customer proximity and cost competitiveness.
- Strong R&D Capabilities and Long-Term Technology Partnerships: R&D spend was Rs. 89.59 crore (7.54% of revenue) in FY2026.
6. Brief Financial Performance & Metrics
**Not Annualized
| Particulars |
FY2024 |
FY2025 |
FY2026 |
| Total Income |
1,083.42 |
1,111.23 |
1,216.74 |
| Total Expenditure |
1,059.11 |
1,072.16 |
1,153.78 |
| EBITDA |
86.28 |
114.00 |
147.78 |
| Profit Before Tax (PBT) |
24.31 |
39.08 |
61.00 |
| Profit After Tax (PAT) |
13.42 |
25.20 |
43.57 |
| E.P.S. (Diluted) (Rs.) |
0.35 |
0.66 |
1.14 |
| P/E (Diluted)* |
240.00x |
127.27x |
73.68x |
| RONW/ROE (%) |
4.42% |
7.74% |
8.53% |
7. IPO Timeline & Payment Charts
Indicative Time Table
| Tentative Events |
Indicative Dates |
| Finalisation of Basis of Allotment with the Designated Stock Exchange |
21/9/2026 |
| Initiation of refunds/unblocking ASBA Fund |
22/9/2026 |
| Credit of Equity Shares to demat accounts of Allottees |
22/9/2026 |
| Commencement of trading of the Equity Shares on the Stock Exchanges |
23/9/2026 |
PRICE CHART (@84) (Retail Category)
| LOT SIZE |
Amount (Rs.) |
| 178 | 14,952 |
| 356 | 29,904 |
| 534 | 44,856 |
| 712 | 59,808 |
| 890 | 74,760 |
| 1,068 | 89,712 |
| 1,246 | 1,04,664 |
| 1,424 | 1,19,616 |
| 1,602 | 1,34,568 |
| 1,780 | 1,49,520 |
| 1,958 | 1,64,472 |
| 2,136 | 1,79,424 |
| 2,314 | 1,94,376 |
HNI Payment Chart
| Category |
No. of Shares |
Minimum Bid Lot Amount (Rs.) |
| Small HNI |
2,492 |
2,09,328 |
| Big HNI |
11,926 |
10,01,784 |
8. Our View / Recommendation
Analyst Recommendation: Invest for Listing Gains
Sushil Finance Research Stance & Valuation View
Hero Motors has delivered steady growth, with Total Income up from Rs. 1,083.42 crore in FY2024 to Rs. 1,216.74 crore in FY2026 and EBITDA margin expanding from 8.11% to 12.44%, aided by a growing e-mobility and premium OEM mix. PAT (attributable to owners) has more than tripled, growing 87.8% in FY2025 and 72.9% in FY2026, driving diluted EPS from Rs. 0.35 to Rs. 1.14 and RONW to 8.53%.
The issue is priced at around 73.7x FY2026 diluted EPS at the upper band. Of the issue, this is predominantly an OFS, with approximately Rs. 400.00 crore out of the Rs. 1,000.00 crore issue being offered by existing shareholders, with only Rs. 600 crore accruing to the company above peer average P/E of 50.2x (17.68x-76.50x), with Net Debt/EBITDA at 2.24x and RONW still in single digits. We recommend to invest for listing gains.
9. Frequently Asked Questions (FAQs)
Q1. What is the business profile of Hero Motors Limited?
Hero Motors Limited is one of India's leading automotive technology companies, engaged in designing, developing, manufacturing, and supplying highly engineered powertrain solutions to automotive OEMs across the US, Europe, India, and ASEAN. It operates two segments: Powertrain Solutions (Gears & Transmissions, Bike Powertrain) and Alloys & Metallics, serving two-wheelers, performance automotive, e-bikes, EVs, hybrid cars, and eVTOL aircraft.
Q2. Who are the marquee customers of Hero Motors?
Marquee global customers include BMW, Ducati, Hero MotoCorp, Formula Motorsport, HWA, enviolo, and leading global e-bike manufacturers.
Q3. What are the key IPO dates, price band, and lot size for Hero Motors IPO?
The IPO opens on September 16, 2026, and closes on September 18, 2026. The price band is fixed at ₹79 to ₹84 per share. The minimum bid lot size is 178 shares (₹14,952 at upper band).
Q4. How will the Fresh Issue proceeds of ₹600 crore be utilized?
Proceeds will be utilized towards repayment/prepayment of outstanding borrowings and accrued interest (₹190 crore), capital expenditure for equipment purchase at the Gautam Buddha Nagar facility (₹200 crore), and the balance towards inorganic growth through unidentified acquisitions, strategic initiatives, and general corporate purposes.
Q5. What is Sushil Finance's official recommendation on Hero Motors IPO?
Sushil Finance recommends to invest for listing gains. The company has demonstrated steady growth, expanding EBITDA margins to 12.44% and tripling PAT, supported by growing e-mobility mix. At the upper band, the issue trades at ~73.7x FY26 diluted EPS compared to the peer average of 50.2x (17.68x-76.50x), with Net Debt/EBITDA at 2.24x.
10. Red Herring Prospectus (RHP) Reference
11. Disclaimer & Disclosures
The content provided in this blog is for informational and educational purposes only and should not be construed as investment, legal, or tax advice. While Sushil Finance makes reasonable efforts to ensure accuracy and reliability of the information, we do not guarantee its completeness or timeliness. Readers are advised to consult with their financial advisor before making any investment decisions. Sushil Finance shall not be held responsible for any direct or indirect loss arising from use of this content. Investments in securities are subject to market risks. Read all scheme-related documents carefully before investing.
