Hero Motors
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Grey market premium
Unofficial and indicative — not a forecast
Day-wise premium · 4 observations
| Date | GMP | % | Sauda | Est. listing | Gain / lot |
|---|---|---|---|---|---|
| 13 Sept 2026 | ₹24 | +28.57% | ₹3,200 | ₹108 | ₹4,272 |
| 12 Sept 2026 | ₹24 | +28.57% | ₹3,200 | ₹108 | ₹4,272 |
| 11 Sept 2026 | ₹10 | +11.90% | ₹1,400 | ₹94 | ₹1,780 |
| 10 Sept 2026 | ₹8 | +9.52% | ₹1,100 | ₹92 | ₹1,424 |
Gain per lot assumes the premium holds to listing and that the application is allotted — allotment in an oversubscribed issue is a lottery, so it is indicative, not expected. Sauda is the rate paid for a submitted application itself.
Issue details
- IPO date
- 16 Sept 2026 – 18 Sept 2026
- Listing date
- 23 Sept 2026
- Face value
- ₹10 per share
- Price band
- ₹79 – ₹84
- Lot size
- 178 shares
- Sale type
- Fresh capital cum OFS
- Issue type
- Book Building issue
- Listing at
- NSE
- Total issue size
- ₹1,000 Cr
- Fresh issue
- ₹600 Cr 7,14,28,571 shares
- Offer for sale
- ₹400 Cr 4,76,19,047 shares
- Market cap at offer price
- ₹3,815 Cr
- Promoter holding
- 84.67% → 61.63% pre-issue → post-issue
- ISIN
- INE012G01022
- CIN
- U29299PB1998PLC039602
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- ICICI Securities Ltd.
- Registered office
- Hero Nagar, GT Road, Ludhiana, Punjab – 141 003, India
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| QIB | 0 | — | — |
| Anchor investor · within QIB | 0 | — | — |
| NII (HNI) | 0 | — | — |
| bNII > ₹10L · within NII | 0 | — | — |
| sNII < ₹10L · within NII | 0 | — | — |
| Retail (RII) | 0 | — | — |
| Employee | 0 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 178 shares per lot, in multiples, at ₹84
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 178 | ₹14,952 |
| Retail (max) | 13 | 2,314 | ₹1,94,376 |
| S-HNI (min) | 14 | 2,492 | ₹2,09,328 |
| S-HNI (max) | 66 | 11,748 | ₹9,86,832 |
| B-HNI (min) | 67 | 11,926 | ₹10,01,784 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
₹84 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 1.08 | 0.91 |
| P/E (×) | 77.78 | 92.31 |
| Price to book (×) | 6.60 | — |
| Market cap | — | ₹3,815 Cr |
Key performance indicators
Latest reported period, consolidated
- Return on net worth
- 8.53%
- ROCE
- 12.00%
- Debt / equity
- 0.83
- PAT margin
- 3.46%
- EBITDA margin
- 12.44%
- NAV per share
- ₹12.72
- Price to book
- 6.60
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
Company financials
Consolidated ·₹ crore unless a row shows % or ×, as reported in the offer document
| Period ended | FY26 | FY25 | FY24 |
|---|---|---|---|
| Profit and loss | |||
| Total income | 1,216.74 | 1,111.23 | 1,083.42 |
| Revenue from operations | 1,188.35 | 1,089.59 | 1,064.39 |
| Other income | 28.39 | 21.64 | 19.03 |
| Total expenses | 1,153.78 | 1,072.16 | 1,059.11 |
| Operating profit | 62.96 | 39.07 | 24.31 |
| Operating margin | 5.17% | 3.52% | 2.24% |
| Profit before tax | 61 | 39.08 | 24.31 |
| Profit after tax | 41.17 | 32.8 | 17.04 |
| PAT margin | 3.38% | 2.95% | 1.57% |
| Balance sheet | |||
| Total assets | 1,371.83 | 1,164.62 | 1,059.86 |
| Current assets | 605.9 | 515.54 | 536.1 |
| Current liabilities | 644.52 | 515.48 | 491 |
| Total liabilities | 890.82 | 738.61 | 685.04 |
| Net worth | 481.01 | 426.01 | 374.82 |
| Current ratio | 0.94× | 1.00× | 1.09× |
| Return on equity | 8.56% | 7.70% | 4.55% |
| Cash flow | |||
| Operating cash flow | 144.04 | 48.34 | 131.97 |
| Investing cash flow | -69.39 | -135.23 | -76.93 |
| Financing cash flow | -61.8 | 53.69 | -20.36 |
| Net cash flow | 12.86 | -33.2 | 34.68 |
Objects of the issue
Stated use of the net proceeds— open a row for the issuer's full explanation
1 Repayment/prepayment/redemption of certain outstanding borrowings ₹190 Cr
The company intends to utilize funds for repayment/prepayment/redemption in full or in part of certain outstanding borrowings to reduce debt servicing costs and enable utilization of internal accruals for business growth and expansion.
2 Capital expenditure for expansion in capacity of Gautam Buddha Nagar facility ₹200 Cr
The company proposes to utilize funds for purchase of equipment required for expansion in capacity at the Gautam Buddha Nagar, Uttar Pradesh facility to increase contribution from systems and e-mobility related products.
3 Funding inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes —
The company intends to deploy funds towards funding inorganic growth through unidentified acquisitions, strategic initiatives, and general corporate purposes including business development initiatives and strategic investments.
1 of 3 objects carry no stated amount — typically general corporate purposes, funded from whatever remains — so the total above is the quantified portion only, not the whole issue.
About Hero Motors
The company is one of India's leading automotive technology companies engaged in designing, developing, manufacturing and supplying highly engineered powertrain solutions catering to automotive original equipment manufacturers in United States, Europe, India and the ASEAN region. The company is a fully integrated powertrain systems provider offering comprehensive solutions including services for designing, prototyping, validating, developing, and delivering system-level and component-level powertrain solutions for both electric as well as non-electric powertrains. The company's operations are organized into Powertrain Solutions and Alloys and Metallics business segments, serving applications in two-wheelers, performance automotive, e-bikes, off-road vehicles, electric and hybrid cars, heavy duty vehicles, and electric vertical take-off and landing categories.
Management
Pankaj Munjal
MD
Abhishek Munjal
CEO
Strengths
As stated in the offer document
Among India's Leading Solutions Provider to Global E-Mobility Industry backed by Diversified Product and Service Offerings
The company is one of India's leading solutions providers to global e-mobility industry with revenue from e-mobility sales being ₹2,732.90 million (23.00% of operations) in Fiscal 2026, demonstrating expertise in high-performance transmission systems for electric vehicles.
Growing Market Presence in the Electric Bikes and Premium Two-Wheelers Segments
The company has expanded market presence across automotive segments and grown business with premium two-wheeler OEMs globally, partnering with BMW, Ducati and leading American OEMs for comprehensive powertrain solutions.
Longstanding Relationships with Premier Global Original Equipment Manufacturers and Expertise in Delivering Solutions
The company maintains diverse premium customer base serving clients globally with average tenure of relationship with top five customers being over 12 years, including exclusive supplier arrangements with BMW.
Advanced Infrastructure with Geographically Diverse Operations
The company operates six manufacturing facilities across India, United Kingdom and Thailand strategically located for customer proximity and cost competitiveness, with advanced precision manufacturing setups and modern processes.
Strong Research and Development Capabilities and Long-Term Partnerships
The company has significantly increased R&D expenses to ₹895.91 million (7.54% of revenue) in Fiscal 2026, with technology centers in India and UK, and strategic partnerships enhancing design and engineering capabilities.
Legacy of Diverse Growth, Experienced Management Team and Strong Corporate Governance
The company benefits from HMC group legacy including world's largest bicycle manufacturer Hero Cycles Limited, led by experienced board and management team with Pankaj Munjal having over 37 years automotive industry experience.
Risk factors
As stated in the offer document
Geographic Revenue Concentration Risk
The company generates 33.59% of revenue from Europe in Fiscal 2026, exposing it to economic slowdowns, regulatory changes, or geopolitical events in these jurisdictions. Any adverse events affecting Europe could significantly impact revenue from operations and business performance.
Industry Dependence on E-bikes and Two Wheelers
The company's business is heavily dependent on e-bikes (12.92% of revenue) and two wheelers (41.00% of revenue) industries. Any adverse changes in these industries, including shifts in consumer demand or regulatory changes, can adversely impact business operations and financial condition.
Customer Concentration Risk
The company derives 72.89% of revenue from its top 10 customers in Fiscal 2026, with the top customer contributing 35.57%. Loss of any major customers could have a material adverse effect on business, financial condition, and results of operations.
Supplier Dependency and Supply Chain Risk
The company relies on purchase orders with suppliers without definite-term agreements, exposing it to production disruptions. Raw materials represent 54.99% of revenue in Fiscal 2026, and supplier performance issues could adversely affect manufacturing operations and output.
Product Quality and Warranty Liability Risk
The company is subject to strict performance requirements including quality and delivery standards with unlimited liability clauses. Product defects or recalls could result in warranty claims, customer loss, and litigation, as evidenced by a customer product recall in Fiscal 2026.
Technology and Market Adaptation Risk
The company may not be able to anticipate and respond to changing technological trends and customer demands in the automotive sector. Failure to innovate or keep up with technological advancements could adversely affect competitiveness and business results.
Manufacturing Facility Operational Risk
The company operates six manufacturing facilities across India, UK, and Thailand subject to operating risks including equipment failures, regulatory actions, and supply chain disruptions. Any shutdown could reduce sales and adversely affect business operations.
Capital Intensive Business and Financing Risk
The company has substantial capital expenditure requirements with ₹922.51 million in Fiscal 2026. Outstanding debt includes ₹987.69 million long-term and ₹3,020.20 million short-term debt with a debt-to-equity ratio of 0.83, creating financing and covenant compliance risks.
Peer comparison
The comparable listed companies named in the offer document
| Company | EPS | NAV | P/E | P/BV | RoNW |
|---|---|---|---|---|---|
| Hero Motors THIS ISSUE | 1.15 | 12.72 | 92.31, computed at the offer price | 6.60, computed at the offer price | 8.53% |
| 21.69 | 164.65 | 17.68 | 2.34 | 13.18% | |
| 67.66 | 442.54 | 40.84 | 6.25 | 15.29% | |
| 10.30 | 93.93 | 76.50 | 8.47 | 10.77% | |
| 20.78 | 113.77 | 59.84 | 10.98 | 19.59% | |
| 14.73 | 80.45 | 56.15 | 10.34 | 18.70% |
Blank cells are figures the offer document does not publish. This issue is unlisted, so it has no market price and the document publishes no multiple for it — its P/E and P/BV here are computed at the offer price, on the post-issue share count, and are comparable to a listed peer's.