Hero Motors IPO

ListedMainboardConsumer DiscretionaryNSE · BSE

Price band: ₹79 – ₹84
Issue size: ₹1,000 Cr
Lot size: 178 sh
Bidding: 16 – 18 Sep
Grey market: —

Market data to 30 Oct 2026. Company figures are as filed, sourced 15 Oct 2026. Every figure’s origin is listed under Sources.

The question this issue poses

In one sentence

Hero Motors Limited describes itself as a maker of powertrain hardware — gears, transmissions, continuously variable transmission hubs, electric motors and integrated drive units — sold to vehicle manufacturers rather than to consumers, with a second Alloys and Metallics segment supplying sheet-metal and tubular assemblies. Fiscal 2026 revenue from operations was Rs 1,188.35 crore, which the record splits Powertrain Solutions Rs 637.75 crore (53.67%) and Alloys and Metallics Rs 550.60 crore (46.33%). Revenue moved from Rs 1,064.39 crore in FY24 to Rs 1,089.59 crore in FY25, a rise of 2.37%, and to Rs 1,188.35 crore in FY26, a further 9.06%; profit after tax over the same three years was Rs 17.04 crore, Rs 32.80 crore and Rs 41.17 crore. The Rs 1,000 crore issue (Rs 600 crore fresh, Rs 400 crore offer for sale) was subscribed 6.66 times overall on its closing day of 18 September 2026 (QIB 1.49 times, NII 9.86 times, retail 8.23 times), listed on 23 September 2026 at Rs 82 against a band top of Rs 84, and last traded at Rs 110.76 on 23 October 2026.

IPOVista score

How this issue scores, and why

Every pillar opens to show the raw metric, the curve it was mapped through, the sub-score and its weight. Disagree with the weighting if you like — the arithmetic is all here.

54Mixed

IPOVista score

A trade-off in both directions

63% of the scoring model was backed by disclosed data for Hero Motors, giving medium confidence. Weights for anything missing were redistributed rather than scored as zero.

How this score is built

PillarScoreWeight

Below the line: market sentiment. Capped at 8 of 100 points so a hot grey market can tilt a score but never carry one.

The IPOVista Score is a transparent summary of disclosed fundamentals and issue terms. It is research, not investment advice, and it cannot predict listing performance.

The company

What the business actually does

Founded 1998 · Ludhiana, Punjab (registered office); Noida, Uttar Pradesh (corporate office) · 1,388 employees

Hero Motors Limited designs and manufactures powertrain hardware — gears, transmissions, continuously variable transmission hubs, electric motors and integrated drive units — and sells it to vehicle manufacturers rather than to consumers. Its parts go into two-wheelers, e-bikes, performance cars, off-road and heavy-duty vehicles, and eVTOL aircraft. Customers named for Fiscal 2026 include River Mobility, Hero MotoCorp, BMW, enviolo, Ducati and HMC E Valley. A second segment, Alloys and Metallics, supplies sheet-metal and tubular assemblies to automotive OEMs. As of March 31, 2026 the company ran six manufacturing plants across India, the United Kingdom and Thailand and employed 1,388 permanent staff. India generated 58.64% of Fiscal 2026 revenue and Europe 33.59%. It was incorporated in Punjab in 1998 as Hero Briggs & Stratton Auto Private Limited.

Revenue is per-part sales to OEMs under programme awards. Fiscal 2026 revenue from operations was ₹1,188.35 crore, split Powertrain Solutions ₹637.75 crore (53.67%) and Alloys & Metallics ₹550.60 crore (46.33%). Materials dominate the cost base: cost of materials consumed was ₹653.50 crore, leaving a 41.69% gross margin, a 12.44% EBITDA margin and a 3.46% PAT margin on ₹41.17 crore of profit. The structural constraint is customer concentration — the top ten customers were 72.89% of Fiscal 2026 revenue and the single largest 35.57% — carried against borrowings of ₹400.79 crore on net worth of ₹482.45 crore.

The company on paper

Legal name: Hero Motors Limited
IncorporatedThe legal entity is often incorporated years before the brand you know, and may have traded under another name first: 30 Apr 1998
CINCorporate Identity Number — the unambiguous handle for looking this company up at the MCA: U29299PB1998PLC039602
Sector: Consumer Discretionary · Engineered powertrain systems — gears, transmissions and CVT hubs — for two-wheeler, e-bike and performance-vehicle OEMs
Employees: 1,388
Registered office: Ludhiana, Punjab (registered office); Noida, Uttar Pradesh (corporate office)
Promoters: Pankaj Munjal, Charu Munjal, Abhishek Munjal, O P Munjal Holdings
Promoter holding, pre-issue: 84.7%
Promoter holding, post-issue: 61.1%
Website: heromotors.com

The numbers

Financial performance

Revenue has compounded at 5.7% a year across the 3 reported financial years.

Revenue and profit

Figures in ₹ crore, as reported in the prospectus. Interim quarters are not annualised.

Revenue
Profit after tax

Margin trend

Profit and operating margin as a percentage of revenue

Net margin
EBITDA margin

Net worth and borrowings

At each period end, in ₹ crore. Gearing below each period is borrowings over net worth, from these same figures.

Net worth
Total borrowings

The price

Valuation

What the issue asks for the business, set against what the business earns.

No valuation ratios are recorded for this issue. The price band and the reported financials above are what this record holds.

The terms

How the issue is structured

60% of the money raised is fresh capital that goes to the company; the rest goes to shareholders selling down.

Fresh issueNew shares — proceeds go to the company: ₹600 Cr
Offer for saleExisting shares — proceeds go to the selling shareholders: ₹400 Cr
Total issue size: ₹1,000 Cr
Shares offered in the OFS: —
Pre-issue shares outstanding: —
Employee discount: —

What the issue does to ownership

Share of paid-up equity before and after the offer. The promoters give up 23.6% of the company.

Promoters
Everyone else

Hover or focus a segment to see who it is. The two bars are the same company, measured before and after the offer.

Percentages are of paid-up equity, and the “after” column assumes the offer is fully subscribed, which is how the offer document states it. This record does not disclose a pre- and post-issue share count, so the part of the company actually changing hands is not split out — everyone who is not a promoter is shown together.

Demand

What the market is bidding

Subscription is hard exchange data. Grey-market premium is not — it is an unofficial quote, shown because readers want it and labelled because it deserves the label.

Subscription by category

Cumulative bid multiples at the end of day 3. Anchor allocations are excluded.

Hover or focus a category to see who bids in it.

Total subscription6.66×

A category subscribed above 1× is oversubscribed; allotment in that category then runs as a lottery or on a proportionate basis.

Grey market premium

Unofficial over-the-counter sentiment

No grey-market quotes have been recorded for this issue.

Outcome

How it actually listed

Issue price: ₹84.00
Listed at: ₹82.00
Listing gain: down 2.4%
Since listing: up 51.3%
Against the issue price: up 47.7%

Work it out

What this means for one application

Three calculations, each stating the assumption it rests on.

What one application costs

Shares are applied for in whole lots at the cut-off price. The full amount is blocked in your bank account under ASBA, not debited, until allotment.

Lots

Shares applied for: 178
At cut-off price: ₹84.00
Amount blocked: ₹14,952

One lot is 178 shares at ₹14,952. Retail applications are capped at ₹2,00,000, which allows up to 13 lots here — apply for more and you are bidding as a non-institutional investor instead.

Odds of getting an allotment

When the retail category is oversubscribed, SEBI requires a lottery for the minimum lot. Every application has the same chance, whatever its size.

~12%

chance of one lot, per application

Retail subscription: 8.23×
Applicants per share available: 8.2× the retail quota

This is an estimate of a lottery, not a prediction. Actual odds depend on the final basis of allotment, how many applications were at the minimum lot, and rejections for technical reasons. Applying from multiple distinct PANs is the only legitimate way to hold more tickets in that lottery.

What it actually did

This issue has listed, so there is a real number instead of a prediction. The grey-market premium is shown beside it for comparison.

₹82.00

listed at, −2.4% against the issue price

Issue price: ₹84.00
Premium said: —
If allotted 178 shares: −₹356

Listing-day figures are as reported by the exchanges.

Our read

The case for and against

Grounded only in figures disclosed in the prospectus. This is analysis, not a recommendation.

What works

EBITDA margin widened at both movements the record carries: EBITDA was Rs 86.28 crore on revenue of Rs 1,064.39 crore in FY24 (8.11%), Rs 114.00 crore on Rs 1,089.59 crore in FY25 (10.46%) and Rs 147.78 crore on Rs 1,188.35 crore in FY26 (12.44%).
Profit after tax rose 92.49% from Rs 17.04 crore in FY24 to Rs 32.80 crore in FY25, and a further 25.52% to Rs 41.17 crore in FY26 — both increases faster than the 2.37% and 9.06% revenue growth of the same two periods.
Net worth rose from Rs 385.44 crore in FY24 to Rs 423.95 crore in FY25 and Rs 482.45 crore in FY26. Measured against closing net worth, profit after tax was 4.42% (Rs 17.04 crore on Rs 385.44 crore), 7.74% (Rs 32.80 crore on Rs 423.95 crore) and 8.53% (Rs 41.17 crore on Rs 482.45 crore) across those three years.
The shares last traded at Rs 110.76 on 23 October 2026, against the Rs 82 listing price (35.07% higher), the Rs 98.40 first-day close (12.56% higher) and the Rs 84 band top (31.86% higher).

What to weigh against it

The record states that the top ten customers were 72.89% of Fiscal 2026 revenue and the single largest customer 35.57%, and describes this customer concentration as the structural constraint on the business.
Profit after tax was 3.46% of revenue in FY26 (Rs 41.17 crore on Rs 1,188.35 crore). The two earlier years on record were 3.01% (Rs 32.80 crore on Rs 1,089.59 crore) and 1.60% (Rs 17.04 crore on Rs 1,064.39 crore).
Borrowings were Rs 304.00 crore in FY24, Rs 407.62 crore in FY25 and Rs 400.79 crore in FY26 — 0.79, 0.96 and 0.83 times the net worth of each year (Rs 385.44 crore, Rs 423.95 crore, Rs 482.45 crore), and 3.52, 3.58 and 2.71 times each year's EBITDA (Rs 86.28 crore, Rs 114.00 crore, Rs 147.78 crore). The FY26 borrowing of Rs 400.79 crore sits beside a fresh issue of Rs 600 crore; the record lists no offer objects.
The record describes materials as dominating the cost base: cost of materials consumed was Rs 653.50 crore of the Rs 1,188.35 crore of Fiscal 2026 revenue, or 54.99%.

Easy to miss in the prospectus

Promoter holding, which the record puts at 84.67% before the issue and 61.08% after, a fall of 23.59 percentage points.
The segment mix, which for Fiscal 2026 was Powertrain Solutions Rs 637.75 crore (53.67%) and Alloys and Metallics Rs 550.60 crore (46.33%) of Rs 1,188.35 crore.
The geographic mix the record reports for Fiscal 2026 revenue: India 58.64% and Europe 33.59%.

Straight from the filing

Read it yourself

Every figure on this page comes out of these. Go and check them.

Hero Motors — Prospectus dated 2026-09-1818 Sep 2026Filed after pricing, with every placeholder filled in.Opens on heromotors.com

Served by the issuer, the exchange or the regulator — never a copy hosted here, so what you open is the filing itself.

The paperwork

Who is running the issue

Lead managers: ICICI Securities Limited, DAM Capital Advisors Limited, JM Financial Limited
RegistrarAllotment status is checked on the registrar's own site: KFin Technologies Limited

How these figures were checked

Reconciled to Hero Motors's own prospectus and to exchange disclosures, then cross-checked against 5 other independently published compilations of the same filing. Where a stated ratio disagreed with the line items it should come from, the disagreement was settled against the prospectus itself.

Hero Motors Limited — Prospectus dated September 18, 2026 (signed final filing version) · read 15 Oct 2026
NSE — Past public issues record for HEROMOTORS (api/public-past-issues) · read 15 Oct 2026
NSE — IPO bid details for HEROMOTORS, updated as on 18-Sep-2026 19:00 (api/ipo-active-category) · read 15 Oct 2026
NSE — IPO detail / security meta for HEROMOTORS (ISIN, listing date, industry) · read 15 Oct 2026
NSE Bhavcopy, 23-Sep-2026 — HEROMOTORS listing-day OHLC (open 82.00, high 98.40, low 80.50, close 98.40, prev close 84.00) · read 15 Oct 2026

The prospectus is the authoritative document. Check anything that matters against it before you act.

At a glance

Board: Mainboard
Opens: 16 Sep 2026
Closes: 18 Sep 2026
Allotment: 21 Sep 2026
Lists: 23 Sep 2026
Revenue (FY26): ₹1,188 Cr
Profit (FY26): ₹41.17 Cr

Timeline

Every step in this issue's calendar has passed.

Tap a step for what it means. Dates are as disclosed in the prospectus and can move.

On this page

IPOVista publishes research and data compiled from public filings and exchange disclosures. Nothing here is investment advice, a recommendation, or an offer to buy or sell any security. Figures can contain errors and sources can be stale — verify against the prospectus before you act, and speak to a SEBI-registered adviser. Investing in securities carries risk, including loss of capital.