Hero Motors IPO details
The public offer will open for subscription on Wednesday, September 16, and close on Friday, September 18. Each equity share has a face value of Rs 10. Anchor investors will be able to place their bids a day before the issue opens on September 15.
The IPO will comprise a fresh issue of shares worth Rs 600 crore and an Offer For Sale (OFS) of Rs 400 crore. The company has set the lot size at 178 shares, meaning retail investors will need to invest a minimum of Rs 14,952 at the upper end of the price band. Bids can thereafter be placed in multiples of 178 shares.
Retail investors have been allocated 35% of the issue, while institutional investors will get 50%. The remaining portion has been reserved for non-institutional investors (NIIs).
At the upper end of the price band, Hero Motors will have a market capitalisation of Rs 3,815 crore. Following the OFS, the promoter holding in the company will decline to 61.63% from 85.57% earlier.
Based on diluted EPS for Fiscal 2026, the company’s Price-to-Earnings (P/E) ratio ranges from 69.30x at the floor price to 73.68x at the cap price. Meanwhile, the company’s 3-year weighted average Return on Net Worth (RoNW) is 7.58%.
When will Hero Motors shares list?
ICICI Securities, DAM Capital and JM Financial are the book running lead managers for the IPO, while Kfin Technologies has been appointed as the registrar.The allotment of shares to eligible investors is scheduled for September 21, followed by the credit of shares to investors’ demat accounts on September 22. Hero Motors is set to make its stock market debut on Wednesday, September 23.
Hero Motors, which counts BMW and Ducati among its clients, is led by Pankaj Munjal. The Munjal family also runs Hero MotoCorp, India’s largest two-wheeler maker by volumes. The company plans to use the IPO proceeds to reduce its debt and purchase equipment for expanding its facility in Uttar Pradesh.
Hero Motors manufactures high-end transmission systems, drive units and engine components. Its key customers include international brands such as BMW and Ducati, along with other two-wheeler and electric bicycle manufacturers.
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