Hero Motors IPO Opens Today: Price Band, Issue Size, Lot Size and Key Details
Hero Motors IPO opens for subscription today, September 16, 2026, allowing investors to participate in the public offering of the automotive components and advanced mobility solutions company.
The IPO will remain open until September 18, 2026. The company has set the price band at ₹79 to ₹84 per equity share, while the total issue size is approximately ₹1,000 crore.
Hero Motors is different from Hero MotoCorp. The company focuses on automotive components and integrated powertrain solutions for electric and non-electric vehicles and has an international customer base.
Hero Motors IPO: Key Details
| Particular | Details |
|---|---|
| IPO Open Date | September 16, 2026 |
| IPO Close Date | September 18, 2026 |
| Price Band | ₹79–₹84 per share |
| Face Value | ₹10 per share |
| Total Issue Size | Approximately ₹1,000 crore |
| Fresh Issue | Approximately ₹600 crore |
| Offer for Sale | Approximately ₹400 crore |
| Lot Size | 178 shares |
| Minimum Investment | ₹14,952 |
| Basis of Allotment | September 21, 2026 |
| Refunds | September 22, 2026 |
| Demat Credit | September 22, 2026 |
| Expected Listing | September 23, 2026 |
| Listing Exchanges | BSE and NSE |
The IPO is structured as a combination of a fresh issue of approximately ₹600 crore and an offer for sale of approximately ₹400 crore.
Hero Motors IPO Price Band
Hero Motors has fixed the IPO price band at ₹79 to ₹84 per share.
At the upper end of the price band, the company is being valued at approximately ₹3,815 crore.
The minimum application is for 178 shares.
At the upper price of ₹84, investors would need ₹14,952 for one lot.
Retail investors can therefore calculate their application requirement based on the number of lots they choose to bid for.
How Much Money Will Hero Motors Raise?
The company plans to raise approximately ₹1,000 crore through the IPO.
The issue consists of:
- ₹600 crore fresh issue
- ₹400 crore offer for sale
The fresh issue means the company will receive the proceeds, subject to issue expenses and the stated objects of the issue.
The OFS portion, on the other hand, involves existing shareholders selling shares.
Where Will the IPO Money Be Used?
According to the IPO details, Hero Motors plans to use a significant portion of the fresh issue for strengthening its balance sheet and expanding manufacturing capacity.
The stated objectives include:
Debt Repayment
Around ₹190 crore has been earmarked for repayment, prepayment, or redemption of certain outstanding borrowings.
Reducing debt can help lower the company’s financing burden and strengthen its balance sheet.
Manufacturing Capacity Expansion
Around ₹200 crore is proposed to be used for capital expenditure, including the purchase of equipment for expanding the company’s facility in Gautam Buddha Nagar, Uttar Pradesh.
Strategic Investments and Growth
The company has also proposed using funds toward inorganic growth through potential acquisitions and other strategic initiatives, along with general corporate purposes.
The specific acquisition targets were not identified in the IPO details.
What Does Hero Motors Do?
Hero Motors is an automotive technology and components company associated with the Munjal family.
The company provides integrated powertrain solutions for different vehicle categories, including electric and conventional vehicles.
Its business exposure includes areas such as:
- Two-wheelers
- Electric vehicles
- Hybrid vehicles
- Passenger vehicles
- Industrial applications
- Advanced mobility applications
The company also has an international customer base, giving it exposure to global automotive markets.
EV Business Is Becoming More Important
One of the important aspects of Hero MotoCorp’s business is its increasing exposure to electric mobility.
According to recent reporting, the company’s EV-related revenue contribution increased to 23% in FY26 from 12% in FY24.
This reflects the company’s efforts to expand beyond traditional powertrain components as the automotive industry moves toward electrification.
However, investors should also consider that the business remains exposed to the broader automotive cycle and customer concentration.
International Business Provides Another Growth Avenue
Hero Motors has a significant international business.
Recent reporting indicates that approximately 41% of the company’s revenue comes from international markets.
This provides geographical diversification but also exposes the company to currency movements, international economic conditions, and the performance of global automotive customers.
Financial Performance
Hero Motors reported revenue of approximately ₹1,216.74 crore in FY26, compared with ₹1,111.23 crore in FY25.
Profit increased to approximately ₹41.17 crore in FY26, compared with ₹32.80 crore in FY25.
The financial numbers show growth in both revenue and profit, although investors should examine the company’s detailed financial statements, margins, cash flows, and debt levels before assessing the IPO valuation.
Customer Concentration Is a Key Risk
One area investors should pay attention to is customer concentration.
Recent reporting indicates that approximately 36% of Hero Motors’ revenue comes from its largest customer, while the top 10 customers account for around 73% of revenue.
Such concentration can create risks if a major customer reduces orders, changes suppliers, or experiences weakness in its own business.
This is particularly important for an automotive component supplier because production volumes are closely linked to vehicle manufacturers and their supply-chain decisions.
Hero Motors IPO Reservation
The IPO has been divided among different investor categories.
The stated reservation is:
- Qualified Institutional Buyers (QIB): 50%
- Non-Institutional Investors (NII): 15%
- Retail Investors: 35%
The minimum retail application is one lot of 178 shares, requiring ₹14,952 at the upper price band.
Hero Motors IPO Timeline
The IPO opens for subscription on September 16 and closes on September 18, 2026.
The expected timeline is:
September 16: IPO opens
September 18: IPO closes
September 21: Basis of allotment
September 22: Refunds and demat credit
September 23: Expected listing on BSE and NSE
Hero Motors IPO: What Investors Should Watch
There are several factors worth tracking beyond the IPO price and grey-market premium.
EV Growth
The company’s increasing exposure to electric vehicles could become an important growth driver as automotive manufacturers expand EV production.
Capacity Expansion
The proposed capital expenditure at the Gautam Buddha Nagar facility could increase manufacturing capacity and support future growth.
Debt Reduction
The proposed use of approximately ₹190 crore toward debt reduction could improve the company’s financial position.
International Revenue
With a substantial portion of revenue coming from international markets, the company’s ability to maintain and expand global customer relationships will be important.
Customer Concentration
The relatively high contribution from major customers remains an important risk factor that investors should examine carefully.
What About Hero Motors IPO GMP?
Grey market premium, or GMP, can change rapidly before and during an IPO and is not an official indicator of the company’s value or expected listing price.
Current media reports have highlighted positive GMP indications for Hero Motors, but investors should treat grey-market activity as unofficial and speculative rather than as a substitute for analysing the company’s financials, valuation, and risks.
Hero Motors IPO: Key Takeaway
Hero Motors enters the public market with a ₹1,000 crore IPO, a price band of ₹79–₹84, and a business that combines traditional automotive components with growing exposure to electric and advanced mobility applications.
The fresh issue provides funds for debt reduction and capacity expansion, while the company’s international customer base provides geographical diversification.
At the same time, investors should carefully consider customer concentration, automotive-cycle risks, execution of capacity expansion, and the valuation implied by the IPO price.
The IPO opens on September 16 and closes on September 18, 2026, with listing currently scheduled for September 23.
Disclaimer: This article is for informational and educational purposes only and should not be considered investment advice. Investors should read the Hero Motors IPO RHP and evaluate the company’s financials, valuation, risks, and objectives before making any investment decision.