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Hero Motors IPO
7.72xsubscribed

Hero Motors IPO

Automobile Two & Three Wheelers
listed
₹14,062Min. investment

Hero Motors Limited IPO Details

SectorAutomobile Two & Three Wheelers
Price range₹79.00 – ₹84.00
IPO type
Regular
Lot size178 shares
Issue size₹1,000Cr
Red Herring Prospectus
Read
Market cap
₹3,815CrLower than sector avg
RevenueApr 2025 - Mar 2026
₹1,188.3CrLower than sector avg
Growth rate3Y CAGR
5.60%Higher than sector avg

Hero Motors IPO Subscription Status

Date
QIB
NII
Retail
Total
16-Sep-26
0.0 times (X)
2.67 times (X)
1.26 times (X)
0.96 times (X)
17-Sep-26
0.05X
8.39X
2.75X
2.32X
18-Sep-26
0.85X
29.23X
8.17X
7.72X

As on 16-Sep-26, 5:30 PM

Hero Motors IPO Timeline

  1. Pre-apply
    15 Sep 2026
  2. Bid start
    16 Sep 2026
  3. Bid end
    18 Sep 2026
  4. Allotment
    21 Sep 2026
  5. Release of funds
    22 Sep 2026
  6. Demat transfer
    22 Sep 2026
  7. Listing
    23 Sep 2026

About Hero Motors Limited

Hero Motors designs, develops, manufactures and supplies powertrain systems and components to automotive original equipment manufacturers (OEMs). Its services span design, prototyping, validation and production, with applications across premium motorcycles, performance cars, e-bikes, off-road vehicles, electric and hybrid vehicles, and aerospace.
The company began operations in 2001 in alloys and metallics and subsequently expanded into gears, transmissions and electric powertrains. Customers include BMW, Ducati, Hero MotoCorp, Enviolo, Formula Motorsport and HWA.
The company operates through powertrain solutions and Alloys and Metallics (A&M). Powertrain solutions contributed ₹637.75 crore, or 53.6%, and A&M ₹550.60 crore, or 46.3%. Within Powertrain solutions, gears and transmissions generated ₹488.88 crore and bike powertrain ₹148.87 crore. Products include gear sets, gearboxes, continuously variable transmission (CVT) hubs, electric motors and integrated electric drive units (EDUs), alongside sheet-metal, tubular and machined components. EV-related sales accounted for 23% of FY26 revenue, compared with 12% in FY24.
As of 31st March 2026, Hero Motors operated six manufacturing and assembly facilities: four in India and one each in the United Kingdom and Thailand. It also operated technology centres in Southam, UK, and Gautam Buddha Nagar, India. Its Gautam Buddha Nagar facility had an installed capacity of 72.67 lakh powertrain parts and 2.06 crore sheet-metal parts; utilisation was 88.2% and 74.9%, respectively, measured against annual average available capacity. Two additional facilities in Ludhiana and the Bengaluru region were being established at the RHP date. India contributed 58.6% of FY26 revenue, Europe including the UK 33.5%, the US 3.8%, and other markets 3.9%.
The top one customer contributed 35.5% of revenue in FY26, down from 38.01% in FY24; the top five customers contributed 61.4%, and the top 10 customers contributed 72.8%. The average relationship tenure with the top five customers exceeds 12 years. Key long-standing customers include Hero MotoCorp (25 years), a European premium two-wheeler OEM (15 years), and Ducati (10 years).
Hero Motors operates in automotive powertrain systems and precision components, with additional exposure to metal assemblies. Gears and transmissions transfer power to the wheels, while electric motors, CVT hubs and integrated drive units serve electric mobility and e-bikes. Demand reflects vehicle production, premiumisation, electrification and the adoption of complete system solutions by OEMs.
The gears and transmissions market across selected applications in India, the US, EU and ASEAN is estimated at ₹3.4 lakh to ₹3.5 lakh crore in CY25, rising to ₹4.85 lakh to ₹4.95 lakh crore by CY31, at a projected 6 to 8% CAGR. The CVT-hub market for bicycles and e-bikes across those regions plus Japan is projected to grow from ₹500 to ₹700 crore to ₹3,500 to ₹3,700 crore over the same period, at 33 to 38% CAGR. E-bike adoption, easier shifting, quieter operation and technological improvements are identified as CVT demand drivers.
Hero Motors serves these markets through high-end OEM partnerships, Hewland's design strength, enviolo-based CVT products, and motor/ESYNC technology associated with Yamaha. Hero Motors' EV-related sales rose from ₹128.09 crore in FY24 to ₹273.29 crore in FY26. Hero Motors is looking to strengthen its value proposition and ramp up powertrain production in Gautam Buddha Nagar, aligning product development and investments with these industry opportunities.
Now, Hero Motors is launching its initial public offering (IPO), which consists of a fresh issue of ₹600 crore and an offer for sale of ₹400 crore. The total issue size of IPO is ₹1,000 crore. Its shares will be listed on the NSE and BSE.
How to apply for Hero Motors IPO?
If you are interested in this investment opportunity but unsure how to apply for an Hero Motors IPO, follow these steps.

When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Hero Motors IPO on Upstox:

  • Log in to your Upstox account, using your six-digit PIN
  • After logging in, click on ‘Discover’
  • On the ‘Discover’ tab, you will find the ‘Invest in IPO’ section
  • Under the Invest in IPO section, look for the ‘Hero Motors IPO’ tab and click on it
  • Now fill in all the required information, like ‘bid price’ and ‘lot size’
  • Confirm and click on ‘Apply’
  • Accept the mandate on your UPI app

Checklist

Quality analysis
Revenue growth
Company valuation
Earnings expansion
Risk analysis
Debt to Equity ratio
Promoter holdings
Shares pledged
The investment checklist helps you understand a company's financial health at a glance and identify quality investment opportunities easily

Strength and Weakness

Integration of Engineering and Manufacturing

Hero Motors supplies design, prototyping, validation and production of components and powertrain systems. The Gears and Transmissions and A&M product families serve applications, including electric, internal combustion and hybrid cars, but the bike powertrain serves electric mobility vehicles alone. This allows participation and collaboration with OEMs in the design and manufacturing process, even beyond the traditional auto sectors.

EV mobility revenue growth

The share of EV revenue rose from ₹128.09 crore in FY24 to ₹273.29 crore in FY26, increasing its revenue percentage from 12.03% to 23%. Hero Motors sells EV transmission components, and its transmission system has received orders from an Indian OEM of electric two-wheelers. Moreover, there are prospects of selling components to premium motorcycles as their customers are designing their EV counterparts.

Exclusive e-bike CVT hubs position

Hero Motors is the only company manufacturing and exporting CVT hubs from India to global e-bike OEMs. This company cooperates with enviolo, and together they have jointly launched the urban model designed for affordable e-bikes. The agreement grants exclusivity for global manufacture and sale in India and ASEAN markets of this model.

Established premium OEM relationships

Customers include BMW, Ducati, Hero MotoCorp, enviolo, Formula Motorsport and HWA. The average relationship with the top five customers exceeded 12 years at 31 March 2026, and Hero Motors is an exclusive supplier for several BMW projects. Close involvement from quotation and development through production supports continuity of these supply relationships.

Design and development capabilities

The majority investment in Hewland in 2023 expanded design, prototyping and transmission expertise, supporting customer-specific engineering solutions. Hero Motors operates technology centres in India and the UK, and its capabilities include electric-transmission design, analysis, testing and validation.

Manufacturing near customer markets

There were six manufacturing plants which were based in India, the United Kingdom, and Thailand as of 31 March 2026. Thailand enables the manufacture of gearboxes for customers in ASEAN countries, and the UK plant is used for the design, prototyping, and manufacturing of gearboxes for international customers.

Integrated systems and the Yamaha partnership

Hero Motors entered integrated electric drive units under the ESYNC brand in 2023 and has commenced supplies to e-bike OEMs. These systems combine motors, batteries, controllers and other components. Its HYM joint venture with Yamaha provides access to motor technology, design and validation, alongside a manufacturing base for the expanding bike powertrain offering.

Objectives of Hero Motors IPO

General corporate purposes
35.00%
IPO proceeds will fund corporate needs, acquisitions, and issue expenses.
Capital expenditure
33.30%
The company will use ₹200 crore to purchase equipment for the manufacturing facility.
Repayment of loan
31.60%
The company will utilise ₹190 crore for prepayment/repayment/redemption of the borrowings.

Compare

CompanyRevenue*3Y growthPATMarket capP/E ratioD/E ratio
This IPO₹1,188.3Cr5.60%₹41.16Cr₹3,815Cr73.040.83
This sector (avg.)₹10,445.29Cr0.24%₹1,208.89Cr₹64,285.76Cr26.300.75
₹50,829.88Cr---₹7,535.99Cr₹2,68,006.9Cr32.230.26
₹18,870.35Cr---₹4,734.44Cr₹1,95,369.6Cr38.310.02
₹44,089.01Cr---₹2,349.9Cr₹1,74,661.8Cr60.983.36

*Revenue for financial year 2025-26. Lower P/E and D/E ratios are generally preferred.

Hero Motors IPO Contact Details

Company NameHero Motors Limited

How to apply for Hero Motors IPO?

  1. Step 1

    Log in to your Upstox account to access IPO investments. Next, select the current IPO section.

  2. Step 2

    Specify IPO details. Enter the number of lots and the price you wish to apply for.

  3. Step 3

    Enter UPI ID. After entering your UPI ID, click submit. This will place your bid with the exchange.

  4. Step 4

    Mandate Notification. Your UPI app will receive a mandate notification to block funds.

  5. Step 5

    Approve Request. Your funds will be blocked once you approve the mandate request on your UPI.

Hero Motors IPO FAQs

Investors can apply for the Hero Motors IPO through their Demat account via the stock exchange or through their broker.
The issue size of the Hero Motors IPO is 1000 Cr.
Pre-applying for an IPO allows you to submit your application before the official subscription period begins.
The IPO shares will typically list on major stock exchanges such as the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), as specified in the IPO prospectus.
Hero Motors IPO will be open between 2026-09-16 and 2026-09-18.
Hero Motors IPO allotment date is 2026-09-22. For Hero Motors IPO allotment status check, you can visit the website of the registrar of the IPO.
For Hero Motors IPO, the IPO registrar is KFin Technologies Limited . You can check Hero Motors IPO allotment status on the website of the registrar.
The shares are proposed to be listed on the BSE and NSE.
The Hero Motors IPO shares will typically be credited to your demat account one working day before the IPO's listing date, provided your application is successfully allotted.
The Hero Motors IPO lot size is 178 and minimum order quantity is 178.
Hero Motors IPO has set the price band for its IPO at 84 per equity share with a face value of 10.