Hero Motors IPO to Open on September 16; Price Band Set at INR 79-84

Hero Motors Limited has set a price band of INR 79-84 per equity share for its maiden initial public offering (IPO). The IPO will open for subscription on September 16, 2026, and close on September 18, 2026.

Investors can bid for a minimum of 178 equity shares and in multiples of 178 thereafter.

The IPO comprises a fresh issue of up to INR 600 crore and an offer-for-sale (OFS) of up to INR 400 crore by promoters O P Munjal Holdings and Hero Cycles Limited.

Of the fresh issue proceeds, INR 190 crore will be used to repay, prepay or redeem certain outstanding borrowings. Another INR 200 crore will be used for capital expenditure, including equipment for capacity expansion at the company’s Gautam Buddha Nagar facility in Uttar Pradesh.

The remaining proceeds will be used for unidentified acquisitions, other strategic initiatives and general corporate purposes.

Hero Motors designs, develops, manufactures and supplies powertrain solutions to automotive original equipment manufacturers (OEMs) across the US, Europe, India and the ASEAN region.

Its product portfolio includes continuously variable transmissions (CVTs), EV transmissions, electric motors, integrated drive units and gear sets. These products are used in two-wheelers, e-bikes, off-road vehicles, electric and hybrid cars, heavy-duty vehicles and electric vertical take-off and landing (eVTOL) applications.

The company counts BMW, Ducati, Enviolo International, Formula Motorsport, Hummingbird EV and HWA among its global customers, according to the CRISIL report cited in the company’s announcement.

ICICI Securities, DAM Capital Advisors and JM Financial are the book-running lead managers, while KFin Technologies is the registrar to the issue.

The IPO will be conducted through the book-building process under SEBI ICDR Regulations. Up to 50% of the net offer will be available for qualified institutional buyers, at least 15% for non-institutional bidders and at least 35% for retail individual bidders.

At the upper and lower ends of the price band, the total IPO size remains INR 1,000 crore, comprising INR 600 crore of fresh issue and INR 400 crore of OFS.