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NSE, BSE

Hero Motors Ltd

Listed

Designs and makes powertrain systems, including CVTs, EV transmissions, motors and e-bike drives, for global OEMs.

Issue details

Price band

₹79 – ₹84

Face value

₹10

Lot size

178 shares

Minimum investment

₹14,952

Issue size

₹1,000 Cr

Fresh issue

₹600 Cr

Offer for sale

₹400 Cr

Issue type

Book Built

Exchange

NSE, BSE

Key dates

Opens

16 Sep 2026

Closes

18 Sep 2026

UPI mandate cut-off

5:00 PM on 18 Sep 2026

Allotment

21 Sep 2026

Refunds

22 Sep 2026

Shares in demat

22 Sep 2026

Listing

23 Sep 2026

Subscription and listing

Subscription

5.12x

Listing price

₹82

Registrar

KFin Technologies Ltd

Lead manager

ICICI Securities, DAM Capital Advisors, JM Financial

Subscription by category

Total

5.12x

Total applications

15,70,415

Anchor investors

Amount raised

₹300.00 Cr

Bid date

15 Sep 2026

50% lock-in ends

20 Oct 2026

Rest lock-in ends

19 Dec 2026

Listing day

Issue price

₹84

Open

₹82.00

High

₹98.40

Low

₹80.50

Day close

₹98.40

Listing gain at open

-2.38%

Issue structure

Shares reserved per category and share of the total issue

QIB

5,95,23,808

50.00%

Anchor Investor

3,57,14,284

30.00%

QIB (Ex. Anchor)

2,38,09,524

20.00%

NII

1,78,57,143

15.00%

bNII > ₹10L

1,19,04,762

10.00%

sNII < ₹10L

59,52,381

5.00%

Retail

4,16,66,667

35.00%

Total

11,90,47,618

100.00%

Finaccle’s quick read

Avoid

Income up 9% and PAT up 26% in FY26, but ROE of 8.56% and PAT margin of 3.46% do not support a post-issue P/E of 92.31, and 40% of the ₹1,000 Cr issue is OFS.

A rules-based screen of growth, margins, debt and valuation, built from the offer document and data on Chittorgarh.com. It is for information only and is not investment advice or a recommendation to buy or sell. Read the RHP and speak to a SEBI-registered adviser before you apply.

About the company

Hero Motors designs and builds powertrain systems, including gears, transmissions and e-bike drive units, plus alloy and metal parts for vehicle makers. It sells to OEMs in the US, Europe, India and ASEAN, with customers such as BMW and Ducati. It has about 1,388 permanent employees and reported total income of ₹1,216.74 Cr in FY26.

Founded

1998

1998

Promoters

Pankaj Munjal, Charu Munjal, Abhishek Munjal, O P Munjal Holdings

Pankaj Munjal, Charu Munjal, Abhishek Munjal, O P Munjal Holdings

Products and segments

Powertrain Solutions (gears and transmissions, bike powertrain, electric and non-electric); Alloys and Metallics

Powertrain Solutions (gears and transmissions, bike powertrain, electric and non-electric); Alloys and Metallics

Promoter holding

84.67% pre-issue; 61.63% post-issue

84.67% pre-issue; 61.63% post-issue

Financial performance

Restated figures in ₹ crore, latest period first

₹ crore, latest first. Full table on desktop.

Period

Total income

Income

EBITDA

PAT

Net worth

Borrowings

Debt

Assets

FY26

FY26

1,216.74

1,216.74

147.78

41.17

41.17

482.45

400.79

400.79

1,371.83

FY25

FY25

1,111.23

1,111.23

114.00

32.80

32.80

423.95

407.62

407.62

1,164.62

FY24

FY24

1,083.42

1,083.42

86.28

17.04

17.04

385.44

304.00

304.00

1,059.86

ROE

8.56%

ROCE

19.77%

Debt / equity

0.83

PAT margin

3.46%

P/E post issue

92.31

Market cap

₹3,815.41 Cr

Use of IPO money

Repayment/prepayment of borrowings

₹190.00 Cr

Capex for Gautam Buddha Nagar, UP facility

₹200.00 Cr

Inorganic growth and general corporate purposes

₹171.99 Cr

Issue expenses

₹60.25 Cr

Strengths

✓

Long relationships with global OEMs such as BMW and Ducati

✓

Strong engineering and R&D in powertrains

✓

Exposure to e-bikes and premium two-wheelers

✓

Improving EBITDA, up from ₹86.28 Cr to ₹147.78 Cr in two years

Risks to watch

!

Post-issue P/E of 92.31 and P/B of 6.60 are very rich

!

Low ROE of 8.56% and thin PAT margin of 3.46%

!

OFS of ₹400 Cr is 40% of the issue

!

Revenue growth only 9% in FY26

!

Borrowings of ₹400.79 Cr remain sizeable

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Last updated:

Information is compiled from exchange notices and the company’s offer document. It is for general information only and is not investment advice or a recommendation to apply. Read the prospectus before investing.