Hero Motors IPO 2026 has attracted attention among investors because of the company’s presence in the automotive technology and auto-components sector. The IPO opened for subscription on September 16, 2026, and will close on September 18, 2026. The issue is being offered on the NSE and BSE, with a price band of ₹79 to ₹84 per share. Investors should understand the company’s business, financial performance, IPO structure, GMP and risks before making an investment decision.
Hero Motors IPO Details
| Particulars | Details |
| IPO Dates | September 16–18, 2026 |
| Price Band | ₹79–₹84 per share |
| Lot Size | 178 shares |
| Minimum Retail Application | 178 shares |
| Minimum Investment | ₹14,952 |
| Issue Size | ₹1,000 crore |
| Fresh Issue | ₹600 crore |
| Offer for Sale | ₹400 crore |
| Issue Type | Book-Built Issue |
| Exchange | NSE & BSE |
| Allotment Date | September 21, 2026 |
| Listing Date | September 23, 2026 |
What Does Hero Motors Do?
Hero Motors Limited is an automotive technology and auto-components company. It designs and manufactures engineered powertrain solutions and components for automotive original equipment manufacturers (OEMs).
Its business includes products and solutions related to:
Gears and transmission systems.
Electric vehicle powertrain components.
Electric motors and drive units.
Two-wheeler powertrain solutions.
Precision-engineered automotive components.
Alloys and metallic components.
The company serves customers in India as well as international markets. Its operations include manufacturing facilities in India and overseas, giving it exposure to the global automotive supply chain.
Financial Performance
| Particulars | FY2026 |
| Revenue from Operations | ₹1,188.35 crore |
| EBITDA | ₹147.78 crore |
| Adjusted EBITDA | ₹160.24 crore |
| Profit After Tax | ₹41.17 crore |
| Net Worth | ₹481.01 crore |
| Borrowings | ₹400.79 crore |
| EBITDA Margin | 12.44% |
| PAT Margin | 3.46% |
| ROE | 8.56% |
| ROCE | 19.77% |
Hero Motors IPO GMP
Grey Market Premium (GMP) figures for Hero Motors IPO have fluctuated during the IPO period. Reports before and during the issue indicated GMP levels ranging from around ₹19 to ₹23 per share, although different market sources reported different figures at different times.
GMP is an unofficial and unregulated market indicator. It can change quickly depending on market sentiment and demand and should not be considered a guaranteed listing price or profit.
Also Read: Veegaland Developers IPO: Check GMP, 3-Year Profit, Debt & Key Risks Before Applying
Pros
- Revenue and profitability have improved over the last three financial years.
- EBITDA margin increased from 8.11% in FY2024 to 12.44% in FY2026.
- Exposure to the automotive powertrain and auto-components industry.
- Presence in electric-vehicle-related powertrain products.
- International customer and market exposure.
- Part of the fresh IPO proceeds will be used for debt repayment.
- ₹200 crore is planned for capacity expansion.
- The company has reported improvement in ROE and ROCE.
Cons
- Hero Motors operates in a competitive automotive components industry.
- The company has borrowings of around ₹400.79 crore as of FY2026.
- A significant portion of revenue comes from a relatively concentrated customer base.
- Automotive demand can be cyclical and dependent on broader economic conditions.
- Raw-material costs can affect margins.
- The IPO valuation is relatively high compared with current earnings; one analysis calculates the upper-band valuation at about 73.7 times FY2026 diluted EPS.
- GMP is unofficial and can change significantly.
- The IPO includes a ₹400 crore OFS, meaning that portion of the proceeds goes to existing shareholders rather than the company.
Conclusion
Hero Motors IPO offers exposure to the growing auto-components and EV powertrain sector. The company has shown improvement in revenue and profitability, but investors should also consider its debt, valuation, customer concentration and industry risks before investing.
FAQs
1. When is the Hero Motors IPO open?
Ans: The Hero Motors IPO is open from September 16 to September 18, 2026.
2. What is the price band of Hero Motors IPO?
Ans: The price band is ₹79 to ₹84 per equity share.
3. What is the lot size of Hero Motors IPO?
Ans: The lot size is 178 shares. At the upper price band of ₹84, the minimum retail investment is ₹14,952.
4. What does Hero Motors Limited do?
Ans: Hero Motors is an automotive technology and auto-components company involved in powertrain solutions, gears, transmissions, electric motors, drive units and other engineered automotive components.
5. What is the issue size of Hero Motors IPO?
Ans: The total IPO size is approximately ₹1,000 crore, consisting of a ₹600 crore fresh issue and ₹400 crore Offer for Sale.
Disclaimer: This article is for informational purposes only and should not be considered investment advice. Investors should read the official RHP and conduct their own research or consult a SEBI-registered financial adviser before investing.
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