| Price | Lot Size | Issue Date | Issue Size |
|---|---|---|---|
| ₹79 to ₹84 | 178 | 16th Sep, 2026 – 18th Sep, 2026 | ₹1000 Cr |
Hero Motors Limited
Hero Motors Limited is an automotive technology and auto-components company engaged in the design, development, manufacturing and supply of engineered powertrain solutions and metallic components to automotive OEMs across India, Europe, the US, and ASEAN. The company primarily operates as a B2B supplier to OEMs and provides capabilities across the powertrain value chain, including design, development, prototyping, validation, and manufacturing. The company operates through two segments: Powertrain Solutions and Alloys & Metallics (A&M), which contributed 53.7% and 46.3% of FY26 revenue, respectively. The Powertrain Solutions segment comprises Gears & Transmissions (G&T) and Bike Powertrain (BPT). G&T manufactures precision gears, gear assemblies, shafts, gearboxes and transmission systems for two-wheelers, passenger vehicles, commercial vehicles, off-road vehicles and other mobility applications, catering to both ICE and EV platforms. BPT focuses on micro-mobility applications and manufactures CVT hubs, electric motors and integrated electric drive systems for e-bikes and electric two-wheelers. The A&M segment manufactures sheet metal, tubular, and machined components, including swing arms, chain cases, engine guards, stands and cylinder blocks, for automotive and other applications. The company also provides engineering, prototyping, validation, and development capabilities as part of its powertrain solutions offering.
Objective of Hero Motors Limited
The IPO consists of a fresh issue of Rs. 600 crores and an offer for sale of Rs. 400 crores
The company proposes to utilize the proceeds from the issue towards the following objects:
- Repayment/prepayment/redemption, in full or in part, of certain outstanding borrowings;
- Capital expenditure through purchase of equipment required for expansion in capacity of the Gautam Buddha Nagar, Uttar Pradesh facility; and
- Funding inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes.
Rationale To Hero Motors Limited
Investment Rationale
Rising E-Mobility Contribution and Longstanding Global OEM Relationships Support Hero Motors’ Position in the Powertrain Market
Hero Motors has established a presence across the global e-mobility and powertrain market, supported by a diversified product portfolio spanning EV transmissions, CVT hubs, electric motors, and integrated electric drive units. Revenue from the e-mobility industry increased from Rs. 1,280.85 million in FY24 to Rs. 2,733 million in FY26, with its contribution to revenue rising from 12.0% to 23.0%. The company also has exposure across multiple vehicle categories, including two-wheelers, passenger vehicles, specialty vehicles, off-road vehicles, aerospace, and marine applications, while its G&T and A&M businesses continue to cater to EV, ICE, and hybrid platforms. Its relationships with established global OEMs, including BMW, Ducati, and Hero MotoCorp, provide access to premium customers, with the average relationship with its top five customers exceeding 12 years as of March 31, 2026. The company has also expanded its capabilities through partnerships with Yamaha Motors Japan and enviolo and its association with Hewland, enabling it to provide design, development, prototyping, validation, and manufacturing capabilities. These factors provide Hero Motors with exposure to multiple end markets while combining its e-mobility offerings with established powertrain and component businesses.
Geographically Diverse Manufacturing Footprint and Growing R&D Capabilities Support End-to-End Powertrain Development
Hero Motors has established a geographically diverse manufacturing and technology infrastructure across India, the UK and Thailand, with facilities positioned to serve customers across different markets. Its manufacturing footprint includes precision gear manufacturing in Gautam Buddha Nagar, gearbox assembly and machining capabilities in Thailand, and design, prototyping and low-volume gearbox manufacturing capabilities in the UK. The company also operates technology centres in India and the UK focused on design, testing and validation of powertrain systems. Its HYM joint venture with Yamaha Motors Japan manufactures electric motors for two-wheelers, with an annual capacity of 145,000 motors and plans to scale capacity to 1 million units by FY2030. The company has also been increasing investments in R&D, with R&D expenditure at Rs. 895.91 million, or 7.5% of revenue, in FY26. The acquisition of Hewland has further added design and prototyping capabilities, while collaborations with technology partners such as enviolo have supported product development, including the Urban CVT model. The company generated 41.4% of FY26 revenue from customers outside India, reflecting its international operating and customer footprint.
Valuation of Hero Motors Limited
Hero Motors is an automotive technology and auto-components company with a diversified presence across powertrain solutions and alloys & metallics, serving global OEMs across multiple vehicle and mobility applications. The company’s growth prospects are supported by its focus on complete powertrain solutions for e-mobility, expansion in e-transmissions and micro-mobility, and increasing utilisation of Hewland’s design, engineering, prototyping and validation capabilities. The company is also expanding its manufacturing and technology infrastructure, including the HYM motor facility, which has an annual capacity of 145,000 motors and is expected to scale to 1 million units by FY30. Financial performance has improved meaningfully, with revenue from operations, EBITDA and PAT growing at a CAGR of 5.7%, 34.3% and 55.5%, respectively, during FY24-FY26. EBITDA margin expanded from 6.3% in FY24 to 10.2% in FY26, while PAT margin improved from 1.6% to 3.5% over the same period. The improvement in profitability has been driven by stronger EBITDA growth relative to revenue, while increasing R&D investments and expansion into new products, applications and geographies provide additional avenues for growth. At the CMP of Rs. 84, the stock is valued at 73.7x FY26 P/E, based on diluted EPS of Rs. 1.1. Considering the company’s expanding e-mobility portfolio, global OEM relationships, investments in technology and manufacturing capabilities and strong improvement in profitability, the company’s growth prospects remain favourable; however, the current valuation leaves limited room for execution-related risks. Accordingly, we recommend a “SUBSCRIBE” rating to the issue.
What is the Hero Motors Limited IPO?
The initial public offer (IPO) of Hero Motors Limited an early investment opportunity in. A stock market investor can buy Hero Motors Limited IPO shares by applying in IPO before Hero Motors Limited get listed at the stock exchanges. An investor could invest in Hero Motors Limited for short term listing gain or a long term.
How to apply for the Hero Motors Limited IPO through StoxBox?
To apply for the Hero Motors Limited through StoxBox one can apply from the website and also from the app. Click here
When will the Hero Motors Limited IPO open?
Hero Motors Limited IPO is opening on 16th Sep 2026. Apply Now
What is the lot size of the Hero Motors Limited IPO?
The Lot Size of Hero Motors Limited 178 equity shares. Login to your account now.
When is the Hero Motors Limited IPO allotment date?
The allotment Date for Hero Motors Limited IPO 21st Sep 2026. Login to your account now.
When is the Hero Motors Limited IPO listing date?
The listing Date for Hero Motors Limited is 23rd Sep 2026. Login to your account now
What is the minimum investment required for the Hero Motors Limited IPO?
In the Retail segment the minimum investment required is Rs 14,952 Login to your account now
What is the maximum investment allowed for Hero Motors Limited IPO?
In the Retail segment the maximum investment requirement Rs 1,94,376 Login to your account now
What are the risks associated with investing in the Hero Motors Limited IPO?
- The company derives a portion of its revenue from operations from jurisdictions outside India, particularly Europe, which contributed 33.6%, 28.5% and 29.3% of revenue from operations in FY26, FY25 and FY24, respectively. Any adverse events affecting these jurisdictions could adversely impact the company’s revenue from operations.
- The company relies on a limited set of suppliers for critical raw materials and does not have definitive supply agreements with all its suppliers. Any disruption in the availability or supply of these raw materials could adversely affect the company’s business, financial condition, results of operations and cash flows.
- Hero Motors’ business is significantly dependent on its top 10 customers, which contributed Rs. 866 crores, Rs. 850 crores and Rs. 819 crores in revenue from operations in FY26, FY25 and FY24, respectively, representing 72.9%, 78.0% and 77.0% of revenue from operations. The loss of any of these key customers could have a material adverse effect on the company’s business, financial condition, results of operations and cash flows.
When will the Hero Motors Limited IPO shares be credited to my Demat account?
The Hero Motors Limited will be credited to the account on allotment date which is 21st Sep 2026. Login to your account
Where can I find the Hero Motors Limited IPO prospectus?
The prospectus of Hero Motors Limited IPO prospectus can be found on the website of SEBI, NSE and BSE
