Hero Motors IPO

About Hero Motors IPO

The Hero Motors IPO, a mainboard IPO, opens on Wednesday, September 16, 2026 and closes on Friday, September 18, 2026. The allotment of shares will take place on Monday, September 21, 2026. The credit of shares to the demat account will take place on Tuesday, September 22, 2026. The initiation of refunds will take place on Tuesday, September 22, 2026. The listing of shares will take place on Wednesday, September 23, 2026.

The equity shares offered through the IPO are proposed to be listed on the BSE and the NSE.

The offer consists of both a fresh issue and an offer for sale component. The fresh issue will include 7,14,28,571 shares aggregating up to ₹600 crore. The offer for sale portion includes 4,76,19,047 shares of ₹10 aggregating up to ₹400 crore. The total number of shares and aggregate amount are 11,90,47,618 shares aggregating up to ₹1,000 crore.

Hero Motors IPO's price band is set at ₹79 to ₹84 per share. The lot size for an application is 178. The minimum amount of investment required by a retail investor is ₹14,952 (178 shares) based on the upper price.

Hero Motors is a fully integrated powertrain systems provider that designs, develops, manufactures and supplies engineered powertrain solutions to automotive OEMs across the United States, Europe, India and the ASEAN region.

Its operations are organised into two segments, Powertrain Solutions and Alloys and Metallics, serving applications that span two-wheelers, performance automotive, e-bikes, off-road vehicles, and electric and hybrid vehicles.

Objectives of Hero Motors IPO

• Repayment, pre-payment or redemption, in full or in part, of certain outstanding borrowings availed by the company.
• Capital expenditure towards the purchase of equipment required for capacity expansion at the company’s facility in Gautam Buddha Nagar, Uttar Pradesh.
• Funding inorganic growth through unidentified acquisitions and other strategic initiatives and for general corporate purposes.

Industry Outlook

The global e-bike market is projected to reach 12.5 to 14.5 million units by 2031, growing at a CAGR of 6% to 9% from 2024. Europe anchors that demand. E-bike sales in Europe are expected to grow at a CAGR of 5% to 8%, reaching 8 to 10 million units by 2031, while the United States market is projected to expand at a CAGR of 16% to 19%.

Two-wheeler electrification is accelerating in parallel. EV penetration in the motorcycle segment is projected to rise from 2.0% in 2025 to 10.5% to 12.5% by 2031, a CAGR of 34% to 38%. Improving battery technology, expanding charging infrastructure and growing government support underpin that shift.

The broader global two-wheeler market is expected to grow from 31.33 million units in CY24 to 39 to 41 million units by CY31P at a CAGR of 3% to 5%. Demand is steady. Within transmissions, automated manual transmissions are projected to grow at a CAGR of 4% to 6% through CY31P, outpacing manual transmissions at 1% to 3%.

These trends favour suppliers with EV-ready powertrain capability. The Company's Bike Powertrain sub-unit caters exclusively to the EV market, and its e-mobility revenue reached ₹273.29 crore in Fiscal 2026, equal to 23.00% of revenue from operations, up from 12.03% in Fiscal 2024.

About Hero Motors

Hero Motors is an automotive technology company focused on engineered powertrain solutions. It designs, develops, manufactures and supplies both electric and non-electric powertrains to global OEMs. Its customers include BMW AG, Ducati Motor Holding S.P.A., enviolo International Inc, Formula Motorsport Ltd, Hummingbird EV Inc and HWA AG.

The company entered the powertrain business through a partnership with enviolo, which owns the continuous variable planetary transmission technology, and it is the only manufacturer of integrated electric powertrain products for e-bikes in India.

Operations are organised into two segments. The Powertrain Solutions segment runs as Gears and Transmissions and Bike Powertrain sub-units, and the Alloys and Metallics segment supplies sheet metal and tubular assemblies to automotive OEMs. Powertrain Solutions generated ₹637.75 crore, or 53.67%, of Fiscal 2026 revenue from operations, while Alloys and Metallics contributed ₹550.60 crore, or 46.33%. Its strategic acquisitions have broadened the platform.

The company acquired a majority stake in Hewland, a British motorsport gearbox specialist, in 2023, and entered a joint venture with Yamaha Motor to manufacture electric motors under the 'HYM' brand.

The company operates six manufacturing facilities across India, the United Kingdom and Thailand, with Indian sites at Gautam Buddha Nagar, Uttar Pradesh and Ludhiana, Punjab. It runs two technology centres, at Southam in the United Kingdom and at Gautam Buddha Nagar in India.

Strengths of Hero Motors

• Among India’s leading solution providers to the global e-mobility industry, backed by diversified product and service offerings.
• Growing market presence in the electric-bike and premium two-wheeler segments.
• Longstanding relationships with premier global original equipment manufacturers and expertise in delivering solutions.
• Advanced infrastructure with geographically diverse operations.
• Strong research and development capabilities and long-term partnerships.
• Legacy of diversified growth, experienced management team and strong corporate governance.

Risks of Hero Motors

• Europe contributed 33.59% of revenue from operations in Fiscal 2026, so any adverse economic event in that region could sharply reduce the company's revenue.
• The business depends heavily on the e-bike and two-wheeler industries, and any downturn in these end-markets would directly hurt results of operations and cash flows.
• A set of suppliers provides critical raw materials without definitive supply agreements, so any supply interruption could disrupt manufacturing and margins.
• Strict customer quality and delivery requirements expose the Company to recalls, warranty claims or order cancellations that could materially reduce revenue.
• Operations involve hazardous activities and materials, and any incident could suspend production and trigger civil or criminal liabilities that affect the business.

Hero Motors Business Model

The company earns its revenue through the design, development, manufacture and supply of engineered powertrain systems and components to automotive OEMs, split across two segments. The Powertrain Solutions segment, comprising Gears and Transmissions and Bike Powertrain, generated ₹637.75 crore, or 53.67% of Fiscal 2026 revenue from operations, while the Alloys and Metallics segment, which supplies sheet metal and tubular assemblies, contributed ₹550.60 crore, or 46.33%.

The company serves premium and performance customers such as BMW, Ducati and enviolo through system-level solutions covering design, prototyping, validation and high-volume manufacturing, differentiating it from suppliers that offer only make-to-print services. Its powertrain-neutral portfolio addresses electric, internal combustion and hybrid applications, with the Bike Powertrain sub-unit catering exclusively to the growing e-mobility market.

Hero Motors Growth Trajectory

Hero Motors 's Total Income for FY26 was ₹1,216.74 crore, whereas in FY25 and FY24 it was ₹1,111.23 crore and ₹1,083.42 crore, respectively.

The Profit After Tax for FY26 was ₹41.17 crore, whereas in FY25 and FY24 it was ₹32.80 crore and ₹17.04 crore, respectively.

Their EBITDA for FY26 was ₹147.78 crore, whereas in FY25 and FY24 it was ₹114.00 crore and ₹86.28 crore, respectively.

Hero Motors Market Position

Hero Motors operates six manufacturing facilities across India, the United Kingdom and Thailand, positioned close to its customers to offer cost-competitive solutions. Its manufacturing facilities hold quality, environmental and occupational health and safety certifications, including ISO 9001:2015, IATF 16949:2016, ISO 14001:2015 and ISO 45001:2018.

As of 31 March 2026, the company's Total Income, Profit After Tax, and EBITDA were ₹1,216.74 crore, ₹41.17 crore, and ₹147.78 crore, respectively.

Anchor Investor Bidding Date

Tuesday, September 15, 2026

IPO Registrar and Book Running Lead Managers

Registrar Details
KFin Technologies
E-mail: heromotors.ipo@kfintech.com
Tel: +91 40 6716 2222/18003094001

Book Running Lead Manager

• ICICI Securities
  
• DAM Capital Advisors
  
• JM Financial
  

Hero Motors Contact Details
Hero Nagar, GT Road, Ludhiana, Punjab – 141 003, India.
Email: investorrelations@heromotors.com
Phone: + 91 120 4412 000

How to apply for Hero Motors IPO?

• Step 1: Log in to your Kotak Neo Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details. Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID. After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification. Your UPI app will receive a mandate notification to block funds.
• Step 5: Approve Request. Your funds will be blocked once you approve the mandate request on your UPI.