Hero Motors IPO opens today: Should you subscribe? Check price band, latest GMP, reviews & more
Hero Motors is selling its shares in the price band of Rs 79-84 apiece, applied for a minimum of 178 shares and its multiples to raise Rs 1,000 crore between September 16-18.
- Sep 16, 2026,
- Updated Sep 16, 2026 9:55 AM IST
The initial public offering (IPO) of Hero Motors kicks-off for bidding on Wednesday, September 16. The auto-ancillary player shall be selling its shares in the range of Rs 79-84 and investors can apply for a minimum of 178 equity shares and its multiples thereafter. The issue will close for bidding on Friday, September 18.
Hero Motors is looking to raise a total of Rs 1,000 crore via primary route, which includes a fresh share sale of Rs 600 crore and an offer-for-sale (OFS) of up to Rs 400 crore. The net proceeds from the issue shall be utilized towards repayment of debit, capital expenditure for expansion of capacity, funding inorganic growth and general corporate purposes.
Incorporated in April 1998, Ludhiana-based Hero Motors is an automotive technology company engaged in designing, developing, manufacturing and supplying engineered powertrain solutions to automotive original equipment manufacturers (OEMs) for both electric and non-electric powertrains across the United States, Europe, India and ASEAN region.
Ahead of its IPO, Hero Motors raised a total of Rs 300 crore from 24 anchor investors as it allocated 3,57,14,284 equity shares for Rs 84 apiece. Its anchor book included marquee names like ICICI Prudential MF, Kotak Mahindra Trustee Company, JM Financial MF, Bank of India MF, Edelweiss Fund, ITI Midcap Fund, ICICI Pru Life Insurance, 3P india Equity Fund, Societe Generale ODI and more.
Hero Motors reported a net profit of Rs 41.17 crore with a revenue of Rs 1,216.74 crore for the financial year ended on March 31, 2026. The company's profit stood at Rs 32.80 crore with a revenue of Rs 1,111.23 crore for the financial year 2024-25. At current valuations, it shall command a market capitalization little more than Rs 3,815 crore.
Hero Motors has reserved 50 per cent of the net offer for qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will have 15 per cent of reservation. Retail investors will have only 35 per cent of the allocation in the IPO. Last heard, Hero Motors was commanding a grey market premium of Rs 19-20 apiece, suggesting nearly 22-23 per cent listing pop for the investors.
ICICI Securities, DAM Capital Advisors and JM Financial are the book running lead managers for the Hero Motors IPO and Kfin Technologies is the registrar of the issue. Shares of the company shall be listed on both BSE and NSE on Wednesday, September 23. Here's what a host of brokerage firms say about the IPO of Hero Motors:
SBI Securities Rating: Neutral Hero Motors is an automotive technology company with integrated capabilities across electric and non-electric powertrain solutions. It delivered revenue, EBITDA and PAT CAGR of 5.7 per cent, 34.3 per cent and 55.5 per cent, respectively, during FY24-FY26, reflecting strong profitability growth despite modest revenue expansion, said SBI Securities.
Hero Motors is valued at a post-issue FY26 P/E multiple of 83.8 times, which appears expensive as compared to its peers considering its modest revenue growth and high customer concentration While its capabilities and expansion into e-mobility and forged components remain promising, the valuation largely factors in future growth," it added with a 'neutral' rating.
Anand Rathi Share & Stock Brokers Rating: Subscribe for long-term Hero Motors has established a position in the automotive technology industry through its focus on engineered powertrain solutions across electric and non-electric mobility applications. It benefits from design, engineering, prototyping, validation and manufacturing capabilities, enabling it to provide system-level and component-level solutions to automotive OEMs, said Anand Rathi.
With facilities across India, the UK and Thailand, Hero Motors has a global footprint. At the upper price band company is valuing at P/E of 92.6 times and EV/EBITDA of 34.38 times with to its FY26 earnings. We believe that the IPO is fully priced and recommend a 'subscribe for long term' rating," it added.
Arihant Capital Markets Rating: Neutral Hero Motors’ outlook remains positive, supported by growth in both EV and premium ICE powertrain segments. The global gearbox assembly components market for motorcycles above 600cc is expected to grow at around 2.5–4.5 per cent CAGR through CY31, while automatic transmission volumes are projected to increase to 14.2–16.2 million units by 2031, said Arihant Capital Markets.
"The combination of 2.5–4.5 per cent premium motorcycle component growth, 3–5 per cent automatic transmission growth, EV product expansion and international business provides a reasonable growth opportunity over the medium term. The issue is priced at a P/E of 92.31 times based on the post-IPO FY26 EPS of Rs 0.91. We recommend a 'neutral' rating for the issue," it said.
Marwadi Financial Services Rating: Subscribe with caution "We assign a ‘subscribe with caution rating as it is among India’s leading solutions providers to the global E-Mobility industry, backed by diversified product and service offerings and a growing presence in electric bikes and premium two-wheelers," said Marwadi Financial. "However, it generated 36 per cent of its revenue from its top customer and 61 per cent from its top five customers, which makes us cautious."
BP Equities Rating: Subscribe "Considering Hero Motor's expanding e-mobility portfolio, global OEM relationships, investments in technology and manufacturing capabilities and strong improvement in profitability, its growth prospects remain favourable; however, the current valuation leaves limited room for execution-related risks," said BP Equities with a 'subscribe' for long-term recommendation.
Swastika Investmart Rating: Neutral Hero Motors is a leading powertrain provider with first-mover advantage in global ebike CVT hubs. It commands a P/E of 69–74 times versus a peer average of 50.2 times, leaving limited upside cushion. RoNW improved to 8.53 per cent and EBITDA margin to 10.2 per cent, but remains below key peers, said Swastika Investmart.
"Top 10 customers contribute 73–78 times of revenue, creating concentration risk. We remain 'neutral' on the issue, given the strong business and EV growth potential, but high valuation limits the upside cushion," it added.
Master Capital Services Rating: Subscribe for long-term Hero Motors is positioned to benefit from both trends through its powertrain solutions and alloys & metallics (A&M) segments. Its first-mover advantage in e-bike powertrains further strengthens its positioning in the rapidly expanding electric mobility segment, said Master Capital Services.
"Its powertrain solutions business, comprising gears & transmissions (G&T) and bike powertrain (BPT), offers expertise in variable transmissions, electric vehicle transmissions, electric motors, integrated drive units and gear sets, providing exposure to both ICE and EV platforms. Investors may consider the IPO as a potential long-term investment opportunity," it added.
The initial public offering (IPO) of Hero Motors kicks-off for bidding on Wednesday, September 16. The auto-ancillary player shall be selling its shares in the range of Rs 79-84 and investors can apply for a minimum of 178 equity shares and its multiples thereafter. The issue will close for bidding on Friday, September 18.
Hero Motors is looking to raise a total of Rs 1,000 crore via primary route, which includes a fresh share sale of Rs 600 crore and an offer-for-sale (OFS) of up to Rs 400 crore. The net proceeds from the issue shall be utilized towards repayment of debit, capital expenditure for expansion of capacity, funding inorganic growth and general corporate purposes.
Incorporated in April 1998, Ludhiana-based Hero Motors is an automotive technology company engaged in designing, developing, manufacturing and supplying engineered powertrain solutions to automotive original equipment manufacturers (OEMs) for both electric and non-electric powertrains across the United States, Europe, India and ASEAN region.
Ahead of its IPO, Hero Motors raised a total of Rs 300 crore from 24 anchor investors as it allocated 3,57,14,284 equity shares for Rs 84 apiece. Its anchor book included marquee names like ICICI Prudential MF, Kotak Mahindra Trustee Company, JM Financial MF, Bank of India MF, Edelweiss Fund, ITI Midcap Fund, ICICI Pru Life Insurance, 3P india Equity Fund, Societe Generale ODI and more.
Hero Motors reported a net profit of Rs 41.17 crore with a revenue of Rs 1,216.74 crore for the financial year ended on March 31, 2026. The company's profit stood at Rs 32.80 crore with a revenue of Rs 1,111.23 crore for the financial year 2024-25. At current valuations, it shall command a market capitalization little more than Rs 3,815 crore.
Hero Motors has reserved 50 per cent of the net offer for qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will have 15 per cent of reservation. Retail investors will have only 35 per cent of the allocation in the IPO. Last heard, Hero Motors was commanding a grey market premium of Rs 19-20 apiece, suggesting nearly 22-23 per cent listing pop for the investors.
ICICI Securities, DAM Capital Advisors and JM Financial are the book running lead managers for the Hero Motors IPO and Kfin Technologies is the registrar of the issue. Shares of the company shall be listed on both BSE and NSE on Wednesday, September 23. Here's what a host of brokerage firms say about the IPO of Hero Motors:
SBI Securities Rating: Neutral Hero Motors is an automotive technology company with integrated capabilities across electric and non-electric powertrain solutions. It delivered revenue, EBITDA and PAT CAGR of 5.7 per cent, 34.3 per cent and 55.5 per cent, respectively, during FY24-FY26, reflecting strong profitability growth despite modest revenue expansion, said SBI Securities.
Hero Motors is valued at a post-issue FY26 P/E multiple of 83.8 times, which appears expensive as compared to its peers considering its modest revenue growth and high customer concentration While its capabilities and expansion into e-mobility and forged components remain promising, the valuation largely factors in future growth," it added with a 'neutral' rating.
Anand Rathi Share & Stock Brokers Rating: Subscribe for long-term Hero Motors has established a position in the automotive technology industry through its focus on engineered powertrain solutions across electric and non-electric mobility applications. It benefits from design, engineering, prototyping, validation and manufacturing capabilities, enabling it to provide system-level and component-level solutions to automotive OEMs, said Anand Rathi.
With facilities across India, the UK and Thailand, Hero Motors has a global footprint. At the upper price band company is valuing at P/E of 92.6 times and EV/EBITDA of 34.38 times with to its FY26 earnings. We believe that the IPO is fully priced and recommend a 'subscribe for long term' rating," it added.
Arihant Capital Markets Rating: Neutral Hero Motors’ outlook remains positive, supported by growth in both EV and premium ICE powertrain segments. The global gearbox assembly components market for motorcycles above 600cc is expected to grow at around 2.5–4.5 per cent CAGR through CY31, while automatic transmission volumes are projected to increase to 14.2–16.2 million units by 2031, said Arihant Capital Markets.
"The combination of 2.5–4.5 per cent premium motorcycle component growth, 3–5 per cent automatic transmission growth, EV product expansion and international business provides a reasonable growth opportunity over the medium term. The issue is priced at a P/E of 92.31 times based on the post-IPO FY26 EPS of Rs 0.91. We recommend a 'neutral' rating for the issue," it said.
Marwadi Financial Services Rating: Subscribe with caution "We assign a ‘subscribe with caution rating as it is among India’s leading solutions providers to the global E-Mobility industry, backed by diversified product and service offerings and a growing presence in electric bikes and premium two-wheelers," said Marwadi Financial. "However, it generated 36 per cent of its revenue from its top customer and 61 per cent from its top five customers, which makes us cautious."
BP Equities Rating: Subscribe "Considering Hero Motor's expanding e-mobility portfolio, global OEM relationships, investments in technology and manufacturing capabilities and strong improvement in profitability, its growth prospects remain favourable; however, the current valuation leaves limited room for execution-related risks," said BP Equities with a 'subscribe' for long-term recommendation.
Swastika Investmart Rating: Neutral Hero Motors is a leading powertrain provider with first-mover advantage in global ebike CVT hubs. It commands a P/E of 69–74 times versus a peer average of 50.2 times, leaving limited upside cushion. RoNW improved to 8.53 per cent and EBITDA margin to 10.2 per cent, but remains below key peers, said Swastika Investmart.
"Top 10 customers contribute 73–78 times of revenue, creating concentration risk. We remain 'neutral' on the issue, given the strong business and EV growth potential, but high valuation limits the upside cushion," it added.
Master Capital Services Rating: Subscribe for long-term Hero Motors is positioned to benefit from both trends through its powertrain solutions and alloys & metallics (A&M) segments. Its first-mover advantage in e-bike powertrains further strengthens its positioning in the rapidly expanding electric mobility segment, said Master Capital Services.
"Its powertrain solutions business, comprising gears & transmissions (G&T) and bike powertrain (BPT), offers expertise in variable transmissions, electric vehicle transmissions, electric motors, integrated drive units and gear sets, providing exposure to both ICE and EV platforms. Investors may consider the IPO as a potential long-term investment opportunity," it added.