Hero Motors to Raise ₹1,000 Crore Through IPO; Issue Opens September 16
Price band fixed at ₹79–84 per share; company plans debt reduction, capacity expansion and strategic acquisitions
Bilkul Bazaar
Ahmedabad
Hero Motors Limited, the automotive technology and powertrain solutions company, will launch its maiden Initial Public Offering (IPO) on September 16, with the company looking to raise ₹1,000 crore from the public markets.
Chairman Pankaj M. Munjal, Managing Director & CEO Amit Gupta, CFO Utkarsh Sanghi, along with Chetan Pandit, Vice President, JM Financial, and Mit Desai of DAM Capital Advisors, were in Ahmedabad on Saturday to announce the details of the public issue and outline the company’s growth plans.
The IPO will remain open for subscription until September 18, 2026. The price band has been fixed at ₹79 to ₹84 per equity share, with a face value of ₹10. Investors can bid for a minimum of 178 shares and in multiples thereof.
₹600 crore fresh issue, ₹400 crore OFS
The ₹1,000-crore IPO comprises a fresh issue of up to ₹600 crore and an offer for sale (OFS) of up to ₹400 crore by promoters O P Munjal Holdings and Hero Cycles Limited.
Of the fresh issue proceeds, around ₹190 crore will be used for repayment, prepayment or redemption of certain borrowings, while ₹200 crore will be deployed towards capital expenditure, including equipment for expanding capacity at the company’s Gautam Buddha Nagar facility in Uttar Pradesh.
The company also proposes to use funds for inorganic growth through acquisitions, strategic initiatives and general corporate purposes.
Munjal: Looking beyond conventional auto components
Hero Motors Chairman Pankaj M. Munjal has indicated that the company is evaluating opportunities beyond its traditional automotive business as it looks for its next phase of growth.
The company has been studying potential acquisition and strategic alliance opportunities, particularly in North America and Europe. Munjal has said that potential new businesses could eventually become “bigger than who we are today.”
The company’s IPO strategy therefore combines balance-sheet strengthening with investment in capacity, technology and potential new businesses.
Technology-driven powertrain company
Unlike a conventional vehicle manufacturer, Hero Motors operates as an automotive technology and powertrain systems company. It designs, develops, manufactures and supplies highly engineered powertrain solutions to automotive OEMs across the US, Europe, India and ASEAN markets.
Its products and solutions are used across two-wheelers, performance vehicles, e-bikes, electric and hybrid cars, off-road vehicles, heavy-duty vehicles and emerging applications such as electric vertical take-off and landing (eVTOL) platforms.
The company counts global names including BMW, Ducati, Enviolo, Formula Motorsport, Hummingbird EV and HWA among its customers.
Strong presence in premium and performance segment
Hero Motors says it is among the few companies addressing the premium internal-combustion-engine and performance ICE segment, where transmission systems need to handle high torque while maintaining lightweight components.
The company has built capabilities in continuously variable transmissions (CVTs), EV transmissions, electric motors, integrated drive units and gear sets, supported by in-house engineering and technology partnerships.
What the management sees ahead
The management’s IPO narrative centres on three broad priorities: strengthening the balance sheet, expanding manufacturing capacity and creating new growth opportunities through technology, EV applications and acquisitions.
IPO Snapshot
| Particulars | Details |
|---|---|
| Company | Hero Motors Limited |
| IPO Size | ₹1,000 crore |
| Fresh Issue | ₹600 crore |
| Offer for Sale | ₹400 crore |
| Price Band | ₹79–₹84 per share |
| IPO Opens | September 16, 2026 |
| IPO Closes | September 18, 2026 |
| Minimum Bid | 178 shares |
| Minimum Investment | ₹14,952 at upper price band |
| Fresh Issue – Debt | ₹190 crore |
| Fresh Issue – Capex | ₹200 crore |
| Primary Business | Automotive technology & powertrain solutions |
| Key Markets | US, Europe, India & ASEAN |
| Lead Managers | ICICI Securities, DAM Capital Advisors, JM Financial |
| Registrar | KFin Technologies |
The issue is being made through the book-building process. Not more than 50% of the net offer will be available to qualified institutional buyers, not less than 15% to non-institutional bidders and not less than 35% to retail investors.
At a glance
₹1,000 crore — total IPO size
₹600 crore — fresh issue
₹400 crore — OFS
₹79–84 — price band
178 shares — minimum lot
September 16–18 — subscription period
₹190 crore — proposed debt reduction
₹200 crore — proposed capacity expansion
Disclaimer: This article is for information purpose only and is not investment advice. Please read the IPO documents carefully before investing.
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