Hero Motors IPO
Hero Motors IPO — dates, price band, GMP & allotment.
Timetable
Issue Summary
| Price Band | ₹79-84 |
| Face Value | ₹10 |
| Lot Size | 178 Shares |
| Issue Size | ₹1000 Cr |
| Sale Type | Fresh capital cum OFS |
| Listing On | BSE, NSE |
| NSE Symbol | HEROMOTORS.NS |
| BSE Scrip Code | 7971 |
| Min Investment | ₹14,952 |
Reservation
What Will It Cost Me?
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 178 | ₹14,952 |
| Retail (Max) | 13 | 2,314 | ₹194,376 |
| S-HNI (Min) | 14 | 2,492 | ₹209,328 |
| B-HNI (Min) | 67 | 11,926 | ₹1,001,784 |
Strengths & Risks
Strengths
- Profit has more than doubled in two years, from Rs 17.04 crore in FY2024 to Rs 32.80 crore in FY2025 and Rs 41.17 crore in FY2026.
- EBITDA has grown strongly over the same period, from Rs 86.28 crore to Rs 147.78 crore.
- Being the only manufacturer in India producing and exporting CVT hubs and integrated electric powertrains for e-bikes is a genuine technical niche that took years to build.
- It sells into the United States, Europe, India and ASEAN, so it is not dependent on the Indian vehicle market alone.
- The product range spans both electric and non-electric powertrains, so it earns from today's vehicles while being positioned for the shift to EVs.
- It supplies across many vehicle types, from two wheelers and e-bikes to hybrid cars, heavy duty vehicles and eVTOL applications.
- RoCE was 19.77% and net worth grew from Rs 385.44 crore in FY2024 to Rs 482.45 crore in FY2026.
- Rs 190 crore of the issue money repays borrowings and the rest goes into expanding capacity at its Gautam Buddha Nagar facility in Uttar Pradesh.
Risks
- This is the most expensive issue in the current batch by a wide margin, at about 92.31 times earnings on an EPS of only Rs 0.91.
- Return on net worth is only 8.53%, which is very low against that valuation.
- The profit margin is thin at 3.46%, and sales growth is slow. Total income rose only about 9% in FY2026, from Rs 1,111.23 crore to Rs 1,216.74 crore.
- Debt is high and is not coming down. Total borrowing was Rs 400.79 crore as on 31 March 2026 against a net worth of Rs 482.45 crore, and it has stayed above Rs 400 crore for two years.
- A large part of the business depends on European and American demand for e-bikes and vehicles, so it carries currency risk and exposure to those economic cycles.
- Powertrain work is won programme by programme from vehicle makers. Losing a programme, or a customer delaying a launch, removes that revenue for years.
- The eVTOL and advanced EV applications are early stage markets, so the money and effort going into them may take a long time to earn.
- This is a fresh issue combined with an offer for sale, and promoter holding falls from 84.67% to 61.63% after the issue.
Valuation & Key Ratios
Financials (Rs. Crore)
| Metric | 31 Mar 2026 | 31 Mar 2025 | 31 Mar 2024 |
|---|---|---|---|
| Assets | 1,371.83 | 1,164.62 | 1,059.86 |
| Total Income | 1,216.74 | 1,111.23 | 1,083.42 |
| Profit After Tax | 41.17 | 32.80 | 17.04 |
| EBITDA | 147.78 | 114.00 | 86.28 |
| NET Worth | 482.45 | 423.95 | 385.44 |
| Reserves and Surplus | 116.32 | 67.71 | 32.26 |
| Total Borrowing | 400.79 | 407.62 | 304.00 |
About The Company
Hero Motors Limited was started in April 1998. It is an automotive technology company that designs, develops, makes and supplies powertrain solutions to vehicle manufacturers. A powertrain is everything that turns engine or motor power into movement at the wheels, so the company supplies the working heart of a vehicle rather than a body part.
It works on both electric and non-electric powertrains, for two wheelers, performance cars, e-bikes, off-road vehicles, electric and hybrid cars, heavy duty vehicles and even eVTOL, which are electric vertical take off aircraft. It offers both complete systems and individual components, covering design, prototyping, validation, development and delivery. Its known areas are continuously variable transmissions, EV transmissions, electric motors, integrated drive units and gear sets.
The business runs in two segments. Powertrain Solutions covers Gears and Transmissions for automotive and mobility use, and Bike Powertrain for micro-mobility and global e-bike makers. The Alloys and Metallics segment supplies sheet metal and related work. The company describes itself as a first mover in the global e-bike powertrain market and as the only manufacturer in India producing and exporting CVT hubs and integrated electric powertrain products for e-bikes. It sells to customers in the United States, Europe, India and the ASEAN region.
Company & Registrar
Subscription By Category
| Category | Subscribed | Shares Offered | Shares Bid For |
|---|---|---|---|
| Qualified Institutional Buyers (QIB) | 1.49× | 25,316,456 | — |
| Non-Institutional Investors (NII) | 9.86× | 18,987,342 | — |
| Retail Individual Investors (RII) | 8.23× | 44,303,798 | — |
| Employee | 0× | — | — |
| Shareholder | 0× | — | — |
| Total | 6.66× | 88,607,596 | — |
GMP History
Anchor Investors
| Investor | Category | Shares Allotted | Value |
|---|---|---|---|
| ICICI PRUDENTIAL SMALLCAP FUND | — | 8,927,590 | — |
| KOTAK MULTI ASSET ALLOCATION FUND | — | 6,308,854 | — |
| KOTAK MNC FUND | — | 1,428,272 | — |
| INFINITY HYBRID LONG-SHORT FUND | — | 1,190,464 | — |
| JM FLEXICAP FUND | — | 2,976,160 | — |
| JM SMALL CAP FUND | — | 595,232 | — |
| JM VALUE FUND | — | 476,150 | — |
| BANK OF INDIA SMALL CAP FUND | — | 3,214,146 | — |
| EDELWEISS BUSINESS CYCLE FUND | — | 833,396 | — |
| EDELWEISS LARGE CAP FUND | — | 595,232 | — |
| EDELWEISS RECENTLY LISTED IPO FUND | — | 297,438 | — |
| ITI MID CAP FUND | — | 862,944 | — |
| ITI FLEXI CAP FUND | — | 863,122 | — |
| ICICI PRUDENTIAL LIFE INSURANCE CO.LTD. | — | 1,190,820 | — |
| 3P INDIA EQUITY FUND | — | 1,190,820 | — |
| EDELWEISS LIFE INSURANCE CO.LTD. | — | 1,190,820 | — |
| LC PHAROS MULTI STRATEGY FUND VCC-LC PHAROS MULTI STRATEGY FUND SF1 | — | 595,441 | — |
| UNITY SMALL FINANCE BANK LTD. | — | 595,619 | — |
| SOCIETE GENERALE | — | 595,441 | — |
| ASAS GLOBAL FUND INCORPORATED VCC SUB FUND | — | 595,441 | — |
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