Minerva Capital Research Solutions

Hero Motors

ListedListed 23 Sep 2026MainboardNSE: HEROMOTORSCheck allotment
Current price₹ 116.51+38.7% since issue
Listing day−2.38%
Issue price
₹ 84
Issue size
₹ 1,000 Cr.
Min. investment
₹ 14,952
Listing price
₹ 82
Subscribed
6.66x
Lot size
178 shares
P/E
92.31
RoNW
8.53%
RoCE
19.77%
Debt / Equity
0.83
PAT margin
3.46%
EBITDA margin
12.44%
RoE
8.56%
EPS
₹ 0.91
NAV
₹ 12.72
Promoter stake
61.63%

About

Hero Motors Limited was started in April 1998. It is an automotive technology company that designs, develops, makes and supplies powertrain solutions to vehicle manufacturers. A powertrain is everything that turns engine or motor power into movement at the wheels, so the company supplies the working heart of a vehicle rather than a body part. It works on both electric and non-electric powertrains, for two wheelers, performance cars, e-bikes, off-road vehicles, electric and hybrid cars, heavy duty vehicles and even eVTOL, which are electric vertical take off aircraft. It offers both complete systems and individual components, covering design, prototyping, validation, development and delivery. Its known areas are continuously variable transmissions, EV transmissions, electric motors, integrated drive units and gear sets. The business runs in two segments. Powertrain Solutions covers Gears and Transmissions for automotive and mobility use, and Bike Powertrain for micro-mobility and global e-bike makers. The Alloys and Metallics segment supplies sheet metal and related work. The company describes itself as a first mover in the global e-bike powertrain market and as the only manufacturer in India producing and exporting CVT hubs and integrated electric powertrain products for e-bikes. It sells to customers in the United States, Europe, India and the ASEAN region.

Timeline

  1. Opens
    16 Sep
    done
  2. Closes
    18 Sep
    done
  3. Allotment
    21 Sep
    done
  4. Refunds
    22 Sep
    done
  5. Demat credit
    22 Sep
    done
  6. Listing
    23 Sep
    done

Grey market premium (GMP)

GMP is an unofficial premium from the unregulated grey market. It is not published, verified or regulated by SEBI, NSE or BSE, grey market deals are not legally enforceable, and it is not a reliable indicator of the listing price. Do not apply for an IPO on the basis of GMP. It is not a recommendation of Minerva Capital Research Solutions.

Highest
₹ 24 on 12 Sep 2026
Lowest
₹ −3 on 22 Sep 2026
First quoted
₹ 8 on 10 Sep 2026

Subscription

How many times each investor group bid for its share, as of 23 Sep 2026, 06:30 PM IST.

How much to apply for

The smallest and largest bids for each kind of investor at the upper price band.

Lots and amounts by investor type
Retail (Min)1178₹ 14,952
Retail (Max)132,314₹ 1,94,376
S-HNI (Min)142,492₹ 2,09,328
B-HNI (Min)6711,926₹ 10,01,784

Company overview

Financials

Financials by year
Assets1,371.831,164.621,059.86
Total Income1,216.741,111.231,083.42
Profit After Tax41.1732.817.04
EBITDA147.7811486.28
NET Worth482.45423.95385.44
Reserves and Surplus116.3267.7132.26
Total Borrowing400.79407.62304

Strengths

  • Profit has more than doubled in two years, from Rs 17.04 crore in FY2024 to Rs 32.80 crore in FY2025 and Rs 41.17 crore in FY2026.
  • EBITDA has grown strongly over the same period, from Rs 86.28 crore to Rs 147.78 crore.
  • Being the only manufacturer in India producing and exporting CVT hubs and integrated electric powertrains for e-bikes is a genuine technical niche that took years to build.
  • It sells into the United States, Europe, India and ASEAN, so it is not dependent on the Indian vehicle market alone.
  • The product range spans both electric and non-electric powertrains, so it earns from today's vehicles while being positioned for the shift to EVs.
  • It supplies across many vehicle types, from two wheelers and e-bikes to hybrid cars, heavy duty vehicles and eVTOL applications.
  • RoCE was 19.77% and net worth grew from Rs 385.44 crore in FY2024 to Rs 482.45 crore in FY2026.
  • Rs 190 crore of the issue money repays borrowings and the rest goes into expanding capacity at its Gautam Buddha Nagar facility in Uttar Pradesh.

Risks

  • This is the most expensive issue in the current batch by a wide margin, at about 92.31 times earnings on an EPS of only Rs 0.91.
  • Return on net worth is only 8.53%, which is very low against that valuation.
  • The profit margin is thin at 3.46%, and sales growth is slow. Total income rose only about 9% in FY2026, from Rs 1,111.23 crore to Rs 1,216.74 crore.
  • Debt is high and is not coming down. Total borrowing was Rs 400.79 crore as on 31 March 2026 against a net worth of Rs 482.45 crore, and it has stayed above Rs 400 crore for two years.
  • A large part of the business depends on European and American demand for e-bikes and vehicles, so it carries currency risk and exposure to those economic cycles.
  • Powertrain work is won programme by programme from vehicle makers. Losing a programme, or a customer delaying a launch, removes that revenue for years.
  • The eVTOL and advanced EV applications are early stage markets, so the money and effort going into them may take a long time to earn.
  • This is a fresh issue combined with an offer for sale, and promoter holding falls from 84.67% to 61.63% after the issue.

What the money is for

Objects of the issue
Repayment/prepayment/redemption, in full or in part, of certain outstanding borrowings availed by Company190
Capital expenditure of Company through purchase of equipment for expansion in capacity of Gautam Buddha Nagar, Uttar Pradesh facility200
Funding inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes(—

Promoters

  • Pankaj Munjal
  • Charu Munjal
  • Abhishek Munjal
  • O P Munjal Holdings
Promoter holding84.67%→61.63%before → after the issue · down 23.04 points

Anchor investors

24 anchors put in ₹ 299.98 Cr., including 16 mutual funds.

Anchor investors
ICICI PRUDENTIAL SMALLCAP FUND89,27,59074.9925%
KOTAK MULTI ASSET ALLOCATION FUND63,08,85452.9917.66%
KOTAK MNC FUND14,28,272124%
INFINITY HYBRID LONG-SHORT FUND11,90,464103.33%
JM FLEXICAP FUND29,76,160258.33%
JM SMALL CAP FUND5,95,23251.67%
JM VALUE FUND4,76,15041.33%
BANK OF INDIA SMALL CAP FUND32,14,146279%
EDELWEISS BUSINESS CYCLE FUND8,33,39672.33%
EDELWEISS LARGE CAP FUND5,95,23251.67%
EDELWEISS RECENTLY LISTED IPO FUND2,97,4382.50.83%
ITI MID CAP FUND8,62,9447.252.42%
ITI FLEXI CAP FUND8,63,1227.252.42%
ICICI PRUDENTIAL LIFE INSURANCE CO.LTD.11,90,820103.33%
3P INDIA EQUITY FUND11,90,820103.33%
EDELWEISS LIFE INSURANCE CO.LTD.11,90,820103.33%
LC PHAROS MULTI STRATEGY FUND VCC-LC PHAROS MULTI STRATEGY FUND SF15,95,44151.67%
UNITY SMALL FINANCE BANK LTD.5,95,61951.67%
SOCIETE GENERALE5,95,44151.67%
ASAS GLOBAL FUND INCORPORATED VCC SUB FUND5,95,44151.67%
NAVI FINSERV LTD.5,95,44151.67%
THE WEALTH COMPANY FLEXI CAP FUND2,38,18020.67%
THE WEALTH COMPANY MULTI ASSET ALLOCATION FUND2,38,18020.67%
THE WEALTH COMPANY SMALL CAP FUND1,19,08110.33%

Registrar, lead managers and documents

Listing on
BSE, NSE
Face value
₹ 10 a share
Registrar
KFin Technologies Limited
Lead managers
JM Financial Ltd., ICICI Securities, Dam Capital Advisors Ltd
Basis of allotment
Open

IPO dates, prices, grey market premium (GMP), subscription and the company overview: IPO Guru, updated three times a day. GMP is an unofficial premium from the unregulated grey market. It is not published, verified or regulated by SEBI, NSE or BSE, grey market deals are not legally enforceable, and it is not a reliable indicator of the listing price. Do not apply for an IPO on the basis of GMP. It is not a recommendation of Minerva Capital Research Solutions.

Our recommendations are research opinions, not investment advice. Read the offer document (RHP) and consult your financial adviser before investing.