Hero Motors has established a price band of ₹79 to ₹84 per share for its initial public offering, according to a public filing released on Thursday. At the upper end of this range, the company is seeking a valuation of approximately ₹3,815.4 crore. Each share carries a face value of ₹10 each, with the three-day share sale scheduled to open on September 16, 2026, and close on September 18, 2026. The company will make its stock market debut on Wednesday, September 23, 2026. The company filed its draft red herring prospectus (DRHP) with SEBI in June 2025, which was subsequently approved by the capital markets regulator in September 2025. Based on diluted EPS for Fiscal 2026, the company's Price-to-Earnings (P/E) ratio ranges from 69.30x at the floor price to 73.68x at the cap price, while its 3-year weighted average Return on Net Worth (RoNW) is 7.58%. According to latest grey market trends, Hero Motors IPO GMP is +29%, indicating strong investor interest with an estimated listing price of ₹108 per share, representing a 28.57% premium over the upper price band of ₹84. However, GMP remains unofficial and does not guarantee the actual listing price.
Managing Director and CEO Amit Gupta revealed that Hero Motors is exploring one or two acquisition opportunities in the technology space to broaden its customer base, enter new geographies and strengthen its engineering capabilities. The company is looking at opportunities that could expand its existing technology capabilities and R&D presence in the UK and India, though it does not have a binding agreement for an acquisition at present. CFO Utkarsh Sanghi stated the company would evaluate inorganic opportunities that could broaden its customer base, provide entry into new geographies or add technologies it does not currently possess. According to the company's red herring prospectus, Hero Motors has earmarked part of the fresh issue proceeds for inorganic growth, with the amount deployed towards acquisitions and other strategic initiatives not exceeding 25% of gross proceeds from the fresh issue. The company has previously relied on acquisitions to broaden its technology capabilities, including acquiring a majority stake in UK-based transmission engineering company Hewland Engineering and premium bike and e-bike components manufacturer Spur Technologies in FY24.
The ₹1,000 crore IPO comprises ₹600 crore worth of fresh equity shares and ₹400 crore through an Offer For Sale (OFS). As reported by CNBC TV18, one lot will comprise 178 shares of Hero Motors, requiring a minimum investment of ₹14,952 for retail investors. The issue structure allocates 35% for retail investors, 50% for institutional investors, and 15% for non-institutional investors. The OFS component has undergone significant changes, with O P Munjal Holdings selling shares worth ₹395 crore (increased from ₹390 crore earlier) and Hero Cycles selling shares worth ₹5 crore through the OFS. Following the issue, the promoter holding will decline to 49.34% from 70.6%, while Hero Cycles' shareholding will decrease to 1.56% from 2%. However, following the OFS, the promoter holding will decline to 61.63% from 85.57%.
Diversifying its customer base remains an important objective for Hero Motors, with significant progress in reducing dependence on major accounts. The company's biggest customer contributed 35.57% of revenue from operations in FY26, compared with 38.80% in FY25. The share of the top five customers also declined to 61.42% from 63.39%, while the top 10 customers accounted for 72.89% of revenue, against 78.03% a year earlier. Hero Motors expects the customer mix to become more diversified as recently secured programmes move towards higher production volumes. The company has maintained a sizeable international business, with overseas customers contributing roughly two-fifths of revenue over the past three financial years. International customers generated ₹491.53 crore, equivalent to 41.36% of revenue from operations in FY26, compared with 40.94% in FY25 and 41.28% in FY24. The company supplied products and services across 23 countries during FY26 and expects exports to gain further importance.
Proceeds from the IPO will be utilized for debt reduction and funding equipment purchases to expand the company's facility in India's Uttar Pradesh state. Of the fresh issue proceeds, ₹190 crore will be used for repayment, prepayment or redemption of certain borrowings and ₹200 crore for purchasing equipment required for capacity expansion at its Gautam Buddha Nagar, Uttar Pradesh, facility. The balance will be allocated for inorganic growth through unidentified acquisitions and general corporate purposes. The offering is being managed by ICICI Securities, DAM Capital and JM Financial as the book running lead managers, with Kfin Technologies serving as the official registrar. Hero Motors has previously used acquisitions to expand capabilities, including acquiring a majority stake in UK-based transmission engineering company Hewland Engineering and premium bike and e-bike components manufacturer Spur Technologies in FY24.
According to LiveMint, anchor investors can submit their bids on September 15, 2026, with allotment scheduled for September 21, 2026. Share credits to demat accounts will occur on September 22, 2026. The company is led by Pankaj Munjal and serves clients including BMW, Ducati, and other two-wheeler and electric bicycle manufacturers. The Munjal family also runs India's largest two-wheeler maker by volumes, Hero MotoCorp. Investors can bid for a minimum of 178 equity shares and in multiples of 178 thereafter, with the minimum investment for retail investors being ₹14,952 and the maximum investment being ₹1,94,376. The IPO has reserved not more than 50% of the shares for qualified institutional buyers, not less than 15% for non-institutional institutional investors, and not less than 35% for retail investors. The company reported strong financial performance with profit of ₹43.6 crore for FY26, marking a 72.9% increase from ₹25.2 crore in the previous year, while revenue from operations rose 9.06% to ₹1,188.4 crore. Hero Motors had total outstanding borrowings of ₹289.5 crore as of July 2026.
