{"id":239456,"date":"2026-09-10T09:39:49","date_gmt":"2026-09-10T04:09:49","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=239456"},"modified":"2026-09-10T09:39:49","modified_gmt":"2026-09-10T04:09:49","slug":"blogs-hero-motors-initial-public-offering-review","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/blogs-hero-motors-initial-public-offering-review\/","title":{"rendered":"Hero Motors IPO Review: Key Details, Company Overview and Financials"},"content":{"rendered":"<p style=\"border-left:4px solid #1F4E79;background:#EBF3FB;padding:10px 16px;font-style:italic;\"><em>Hero Motors IPO price band Rs 79 to Rs 84. Opens 16 Sep, closes 18 Sep 2026. Issue size Rs 1,000 Cr. Lists 23 Sep on BSE, NSE.<\/em><\/p>\n<div style=\"background:#F0F9FF;border-left:4px solid #2E7D32;border-radius:6px;padding:14px 18px;margin:18px 0;\">\n<p style=\"margin:0;color:#1F4E79;font-size:14px;\"><strong>Quick Answer<\/strong><\/p>\n<p style=\"margin:8px 0 0;\">The Hero Motors IPO is a Rs 1,000 crore bookbuilding issue priced between Rs 79 and Rs 84 per share, open for bidding from 16 to 18 September 2026. The automotive flagship company of the Hero Group combines a Rs 600 crore fresh issue with a Rs 400 crore offer for sale by the promoter. Shares are proposed to list on BSE and NSE around 23 September 2026, at a valuation that reflects a sharp earnings recovery after a weak FY24.<\/p>\n<\/p><\/div>\n<p>The Hero Motors IPO is a bookbuilding issue of Rs 1,000 crore, comprising a fresh issue of shares worth Rs 600 crore and an offer for sale of shares worth Rs 400 crore by the promoter. The IPO will open for subscription on 16 September 2026 and close on 18 September 2026. The allotment is expected to be finalised on 21 September 2026, while the shares are proposed to list on BSE and NSE around 23 September 2026.<\/p>\n<p>The Hero Motors IPO price band is set at Rs 79 to Rs 84 per share, with a lot size of 178 shares. Retail investors must apply for a minimum of 178 shares, requiring an investment of Rs 14,952 at the upper price band. Retail investors have been allocated 35 percent of the issue, institutional investors 50 percent, and the remainder is reserved for non-institutional investors.<\/p>\n<p>ICICI Securities, DAM Capital Advisors and JM Financial are the book-running lead managers for the Hero Motors IPO, while KFin Technologies Ltd. is the registrar to the issue.<\/p>\n<p>For detailed information on the company&#8217;s business, financials, risk factors and the proposed utilisation of proceeds, investors should refer to the Hero Motors IPO Red Herring Prospectus (RHP) before making an investment decision.<\/p>\n<p style=\"margin-top:24px;\"><strong>Click Here &#8211; Get Free Investment Predictions<\/strong><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/univest.in\/blogs-2\/blogs-hero-motors-initial-public-offering-review\/#Company_Overview\" title=\"Company Overview\">Company Overview<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/univest.in\/blogs-2\/blogs-hero-motors-initial-public-offering-review\/#IPO_Details\" title=\"IPO Details\">IPO Details<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/univest.in\/blogs-2\/blogs-hero-motors-initial-public-offering-review\/#Industry_Context\" title=\"Industry Context\">Industry Context<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/univest.in\/blogs-2\/blogs-hero-motors-initial-public-offering-review\/#Business_Strengths\" title=\"Business Strengths\">Business Strengths<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/univest.in\/blogs-2\/blogs-hero-motors-initial-public-offering-review\/#Business_Risks\" title=\"Business Risks\">Business Risks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/univest.in\/blogs-2\/blogs-hero-motors-initial-public-offering-review\/#Financial_Performance\" title=\"Financial Performance\">Financial Performance<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/univest.in\/blogs-2\/blogs-hero-motors-initial-public-offering-review\/#Hero_Motors_Ltd_%E2%80%93_Financials_Rs_in_Lakh\" title=\"Hero Motors Ltd. &#8211; Financials (Rs in Lakh)\">Hero Motors Ltd. &#8211; Financials (Rs in Lakh)<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/univest.in\/blogs-2\/blogs-hero-motors-initial-public-offering-review\/#Key_Ratios_and_Metrics\" title=\"Key Ratios and Metrics\">Key Ratios and Metrics<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/univest.in\/blogs-2\/blogs-hero-motors-initial-public-offering-review\/#Objects_of_the_Offer\" title=\"Objects of the Offer\">Objects of the Offer<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/univest.in\/blogs-2\/blogs-hero-motors-initial-public-offering-review\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/univest.in\/blogs-2\/blogs-hero-motors-initial-public-offering-review\/#FAQs\" title=\"FAQs\">FAQs<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/univest.in\/blogs-2\/blogs-hero-motors-initial-public-offering-review\/#What_are_the_Hero_Motors_IPO_dates_and_when_will_it_list\" title=\"What are the Hero Motors IPO dates, and when will it list?\">What are the Hero Motors IPO dates, and when will it list?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/univest.in\/blogs-2\/blogs-hero-motors-initial-public-offering-review\/#What_is_the_price_band_and_minimum_investment_for_the_Hero_Motors_IPO\" title=\"What is the price band and minimum investment for the Hero Motors IPO?\">What is the price band and minimum investment for the Hero Motors IPO?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/univest.in\/blogs-2\/blogs-hero-motors-initial-public-offering-review\/#What_does_Hero_Motors_Limited_actually_manufacture\" title=\"What does Hero Motors Limited actually manufacture?\">What does Hero Motors Limited actually manufacture?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/univest.in\/blogs-2\/blogs-hero-motors-initial-public-offering-review\/#Why_did_Hero_Motors_profit_decline_sharply_in_FY24\" title=\"Why did Hero Motors&#8217; profit decline sharply in FY24?\">Why did Hero Motors&#8217; profit decline sharply in FY24?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/univest.in\/blogs-2\/blogs-hero-motors-initial-public-offering-review\/#How_will_Hero_Motors_use_the_proceeds_from_its_fresh_issue\" title=\"How will Hero Motors use the proceeds from its fresh issue?\">How will Hero Motors use the proceeds from its fresh issue?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/univest.in\/blogs-2\/blogs-hero-motors-initial-public-offering-review\/#What_are_the_key_strengths_highlighted_for_the_Hero_Motors_IPO\" title=\"What are the key strengths highlighted for the Hero Motors IPO?\">What are the key strengths highlighted for the Hero Motors IPO?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/univest.in\/blogs-2\/blogs-hero-motors-initial-public-offering-review\/#What_are_the_main_risks_or_concerns_flagged_for_the_Hero_Motors_IPO\" title=\"What are the main risks or concerns flagged for the Hero Motors IPO?\">What are the main risks or concerns flagged for the Hero Motors IPO?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/univest.in\/blogs-2\/blogs-hero-motors-initial-public-offering-review\/#Who_are_the_lead_managers_and_registrar_for_the_Hero_Motors_IPO\" title=\"Who are the lead managers and registrar for the Hero Motors IPO?\">Who are the lead managers and registrar for the Hero Motors IPO?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/univest.in\/blogs-2\/blogs-hero-motors-initial-public-offering-review\/#Is_the_Hero_Motors_IPO_a_good_investment\" title=\"Is the Hero Motors IPO a good investment?\">Is the Hero Motors IPO a good investment?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Company_Overview\"><\/span><strong>Company Overview<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Hero Motors Limited is the automotive flagship company of the Hero Group, one of the world&#8217;s largest two-wheeler and cycle manufacturers. Originally incorporated in April 1998 as Hero Briggs &#038; Stratton Auto Private Limited, the company has been renamed several times before arriving at its present name, Hero Motors Limited, following its conversion to a public limited company.<\/p>\n<p>The company offers comprehensive automotive component solutions, including services for designing, prototyping, validating and manufacturing metal components, and has built a diversified portfolio spanning both electric vehicle (EV) and internal combustion engine (ICE) powertrain solutions. This diversification across powertrain technologies positions the company to serve automotive customers regardless of how quickly the industry shifts towards electrification.<\/p>\n<p><em>Read on for the complete Hero Motors IPO details, including price band, lot size, listing timeline and the company&#8217;s financial track record.<\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"IPO_Details\"><\/span><strong>IPO Details<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table border=\"1\" cellpadding=\"6\" cellspacing=\"0\" style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"background:#1F4E79;color:#fff;text-align:left;\">Particulars<\/th>\n<th style=\"background:#1F4E79;color:#fff;text-align:left;\">Details<\/th>\n<\/tr>\n<tr>\n<td>IPO Date<\/td>\n<td>16 to 18 September 2026<\/td>\n<\/tr>\n<tr>\n<td>Allotment<\/td>\n<td>Mon, 21 September 2026<\/td>\n<\/tr>\n<tr>\n<td>Listing Date<\/td>\n<td>Wed, 23 September 2026 (tentative)<\/td>\n<\/tr>\n<tr>\n<td>Face Value<\/td>\n<td>Rs 10 per share<\/td>\n<\/tr>\n<tr>\n<td>Price Band<\/td>\n<td>Rs 79 to Rs 84<\/td>\n<\/tr>\n<tr>\n<td>Lot Size<\/td>\n<td>178 Shares<\/td>\n<\/tr>\n<tr>\n<td>Issue Type<\/td>\n<td>Bookbuilding IPO<\/td>\n<\/tr>\n<tr>\n<td>Sale Type<\/td>\n<td>Fresh Issue cum Offer for Sale<\/td>\n<\/tr>\n<tr>\n<td>Total Issue Size<\/td>\n<td>Aggregating up to Rs 1,000 Cr<\/td>\n<\/tr>\n<tr>\n<td>Fresh Issue<\/td>\n<td>Aggregating up to Rs 600 Cr<\/td>\n<\/tr>\n<tr>\n<td>Offer for Sale<\/td>\n<td>Aggregating up to Rs 400 Cr<\/td>\n<\/tr>\n<tr>\n<td>Investor Reservation<\/td>\n<td>QIB: 50%; Retail: 35%; NII (HNI): 15% of the offer<\/td>\n<\/tr>\n<tr>\n<td>Market Capitalisation (at upper price)<\/td>\n<td>Rs 3,815 Cr<\/td>\n<\/tr>\n<tr>\n<td>Listing Exchange<\/td>\n<td>BSE, NSE<\/td>\n<\/tr>\n<\/table>\n<p><em>(Compiled from the RHP\/DRHP and market updates)<\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Industry_Context\"><\/span><strong>Industry Context<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>India&#8217;s auto components industry serves both the domestic automotive market and export customers, and is undergoing a structural shift as OEMs increasingly require parts compatible with electric vehicle platforms alongside traditional ICE components.<\/li>\n<li>Component makers offering design, prototyping and validation services, not just manufacturing, can capture more value and build stickier relationships with automotive OEMs than pure build-to-print suppliers.<\/li>\n<li>Diversification across both EV and ICE powertrain components is an increasingly common strategy among established auto component makers, hedging against uncertainty in the pace of India&#8217;s electrification transition.<\/li>\n<li>The Hero Group&#8217;s broader scale in two-wheelers provides potential synergies and a captive demand base, though Hero Motors also serves other automotive customers beyond the group.<\/li>\n<li>Auto component margins are sensitive to raw material costs, particularly steel and aluminium, and to the capital expenditure and production cycles of the OEM customers they serve.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Business_Strengths\"><\/span><strong>Business Strengths<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Here are the key strengths investors evaluating the Hero Motors IPO should weigh:<\/p>\n<ul>\n<li>Strong promoter backing as the automotive flagship of the Hero Group, one of the world&#8217;s largest two-wheeler and cycle manufacturers.<\/li>\n<li>A diversified portfolio across EV and ICE powertrain solutions and metal components, reducing dependence on any single automotive technology transition outcome.<\/li>\n<li>Comprehensive service offerings spanning design, prototyping, validation and manufacturing, which can create stickier, higher value customer relationships.<\/li>\n<li>A long operating history dating back to 1998, providing an established base of manufacturing know-how and OEM relationships.<\/li>\n<\/ul>\n<p style=\"margin-top:24px;\"><strong>Screen auto components and EV supply chain stocks on the Univest Screener<\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Business_Risks\"><\/span><strong>Business Risks<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Alongside these strengths, the Hero Motors IPO also carries the following business risks:<\/p>\n<ul>\n<li>The company&#8217;s three-year weighted average Return on Net Worth (RoNW) is a modest 7.58 percent, and FY24 profit after tax fell around 58 percent to Rs 17 crore from Rs 40.5 crore in FY23.<\/li>\n<li>At the price band of Rs 79 to Rs 84, the post-issue P\/E ratio ranges from around 69.30 times to 73.68 times based on diluted FY26 EPS, which independent reports have described as a rich valuation relative to the company&#8217;s recent earnings history.<\/li>\n<li>The Rs 400 crore offer for sale by the promoter will not benefit the company, and promoter holding will decline to 61.63 percent from 85.57 percent following the issue.<\/li>\n<li>The auto components business is exposed to cyclical OEM production volumes and raw material cost volatility, and the uncertain pace of the EV transition could affect demand for either powertrain segment differently than expected.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Financial_Performance\"><\/span><strong>Financial Performance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The Hero Motors IPO comes after a period of volatile profitability. The company&#8217;s FY24 profit after tax fell to Rs 17 crore from Rs 40.5 crore in FY23, a decline of around 58 percent, even as revenue was broadly stable.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Hero_Motors_Ltd_%E2%80%93_Financials_Rs_in_Lakh\"><\/span><strong>Hero Motors Ltd. &#8211; Financials (Rs in Lakh)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table border=\"1\" cellpadding=\"6\" cellspacing=\"0\" style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"background:#1F4E79;color:#fff;text-align:left;\">Particulars<\/th>\n<th style=\"background:#1F4E79;color:#fff;text-align:left;\">Fiscal 2024<\/th>\n<th style=\"background:#1F4E79;color:#fff;text-align:left;\">Fiscal 2023<\/th>\n<\/tr>\n<tr>\n<td>Revenue from Operations<\/td>\n<td>1,06,438.00<\/td>\n<td>1,05,460.00<\/td>\n<\/tr>\n<tr>\n<td>EBITDA<\/td>\n<td>8,280.00<\/td>\n<td>9,735.00<\/td>\n<\/tr>\n<tr>\n<td>EBITDA Margin (%)<\/td>\n<td>7.78% (computed)<\/td>\n<td>9.23% (computed)<\/td>\n<\/tr>\n<tr>\n<td>Profit After Tax (PAT)<\/td>\n<td>1,700.00<\/td>\n<td>4,050.00<\/td>\n<\/tr>\n<\/table>\n<p><em>Amounts in Rs Lakh unless stated otherwise, compiled from published Hero Motors IPO financial disclosures. EBITDA margin figures are computed from disclosed absolute figures. For the nine months ended 31 December 2024, the company separately reported revenue from operations of Rs 807.2 crore and profit after tax of Rs 22.39 crore. Full FY26 figures, on which the post-issue P\/E is based, were not separately itemised in the sources used for this review; investors should refer to the RHP for the complete restated financial statements.<\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Key_Ratios_and_Metrics\"><\/span><strong>Key Ratios and Metrics<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The table below summarises the key ratios and metrics relevant to the Hero Motors IPO as disclosed in available sources.<\/p>\n<p><em>These ratios offer a quick snapshot of how the Hero Motors IPO is priced relative to the company&#8217;s profitability and net worth.<\/em><\/p>\n<table border=\"1\" cellpadding=\"6\" cellspacing=\"0\" style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"background:#1F4E79;color:#fff;text-align:left;\">KPI (FY26 (diluted basis))<\/th>\n<th style=\"background:#1F4E79;color:#fff;text-align:left;\">Value<\/th>\n<\/tr>\n<tr>\n<td>3-Year Weighted Average RoNW<\/td>\n<td>7.58%<\/td>\n<\/tr>\n<tr>\n<td>Post-Issue P\/E (Floor Price)<\/td>\n<td>69.30x<\/td>\n<\/tr>\n<tr>\n<td>Post-Issue P\/E (Cap Price)<\/td>\n<td>73.68x<\/td>\n<\/tr>\n<tr>\n<td>Market Capitalisation (at upper price)<\/td>\n<td>Rs 3,815 Cr<\/td>\n<\/tr>\n<tr>\n<td>Promoter Holding Post-Issue<\/td>\n<td>61.63% (down from 85.57%)<\/td>\n<\/tr>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"Objects_of_the_Offer\"><\/span><strong>Objects of the Offer<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The company proposes to utilise the net proceeds from the Hero Motors IPO towards the following objects.<\/p>\n<ul>\n<li>Capital expenditure requirements<\/li>\n<li>Funding inorganic growth through unidentified acquisitions and other strategic initiatives<\/li>\n<li>General corporate purposes<\/li>\n<\/ul>\n<p style=\"margin-top:24px;\"><em>Download the Univest iOS App or Univest Android App to track the Hero Motors IPO and get daily stock recommendations.<\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><em>Here is the bottom line on the Hero Motors IPO.<\/em><\/p>\n<p>The Hero Motors IPO reflects the automotive flagship of the Hero Group, with a diversified EV and ICE component portfolio, comprehensive design-to-manufacturing capabilities, and strong promoter backing.<\/p>\n<p>However, a sharp FY24 profit decline, a modest three-year weighted average RoNW of 7.58 percent, a post-issue P\/E in the 69-74 times range, and the large promoter offer for sale are factors that could affect the investment case for the Hero Motors IPO.<\/p>\n<p>Overall, investors weighing the Hero Motors IPO should evaluate the company&#8217;s business model, financial performance, industry outlook, competitive positioning, valuation and risk factors in detail, and carefully review the Red Herring Prospectus (RHP) before making an informed investment decision.<\/p>\n<div style=\"background:#CC0000;border-radius:8px;padding:16px 20px;margin:24px 0;\">\n<p style=\"color:#FFFFFF;font-size:13px;line-height:1.7;margin:0;\"><strong style=\"color:#FFFFFF;\">Disclaimer:<\/strong> Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data independently before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).<\/p>\n<\/p><\/div>\n<p>Univest does not publish grey market premium figures. Grey market premium is an unofficial and unregulated indicator collected informally outside the stock exchanges. It is not published, verified or endorsed by SEBI, NSE or BSE, can vary widely between trackers, and is not always accurate.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"FAQs\"><\/span><strong>FAQs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"What_are_the_Hero_Motors_IPO_dates_and_when_will_it_list\"><\/span><strong>What are the Hero Motors IPO dates, and when will it list?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> The Hero Motors IPO opens for subscription on 16 September 2026 and closes on 18 September 2026. The allotment is expected to be finalised on 21 September 2026, and the shares are tentatively scheduled to list on both BSE and NSE around 23 September 2026.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_is_the_price_band_and_minimum_investment_for_the_Hero_Motors_IPO\"><\/span><strong>What is the price band and minimum investment for the Hero Motors IPO?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> The price band for the Hero Motors IPO is set at Rs 79 to Rs 84 per equity share, with a lot size of 178 shares. Retail investors must apply for a minimum of one lot, which costs Rs 14,952 at the upper price band.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_does_Hero_Motors_Limited_actually_manufacture\"><\/span><strong>What does Hero Motors Limited actually manufacture?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Hero Motors is the automotive flagship company of the Hero Group and offers comprehensive automotive component solutions, including designing, prototyping, validating and manufacturing metal components. The company has built a diversified portfolio spanning both electric vehicle (EV) and internal combustion engine (ICE) powertrain solutions, positioning it to serve automotive OEM customers across both propulsion technologies as India&#8217;s auto industry gradually electrifies.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Why_did_Hero_Motors_profit_decline_sharply_in_FY24\"><\/span><strong>Why did Hero Motors&#8217; profit decline sharply in FY24?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Hero Motors&#8217; profit after tax fell to Rs 17 crore in FY24 from Rs 40.5 crore in FY23, a decline of around 58 percent, even though revenue from operations was broadly stable at around Rs 1,064 crore compared with Rs 1,055 crore the year before. EBITDA also declined to Rs 82.8 crore from Rs 97.35 crore over the same period, suggesting the profit decline was driven by margin compression rather than a revenue shortfall, though the specific underlying causes are best confirmed from the detailed disclosures in the RHP.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_will_Hero_Motors_use_the_proceeds_from_its_fresh_issue\"><\/span><strong>How will Hero Motors use the proceeds from its fresh issue?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> The company intends to use its fresh issue proceeds for capital expenditure requirements, funding inorganic growth through unidentified future acquisitions and other strategic initiatives, and general corporate purposes. The separate Rs 400 crore offer for sale component will go entirely to the promoter rather than being used within the business.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_are_the_key_strengths_highlighted_for_the_Hero_Motors_IPO\"><\/span><strong>What are the key strengths highlighted for the Hero Motors IPO?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Hero Motors carries the backing of the Hero Group, one of the world&#8217;s largest two-wheeler and cycle manufacturers, and has built a diversified portfolio spanning both EV and ICE powertrain components and metal parts. Its comprehensive service offering, covering design, prototyping, validation and manufacturing, can help build stickier and higher value relationships with automotive OEM customers compared with companies that only manufacture to specification, and the company brings an operating history dating back to 1998.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_are_the_main_risks_or_concerns_flagged_for_the_Hero_Motors_IPO\"><\/span><strong>What are the main risks or concerns flagged for the Hero Motors IPO?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> The company&#8217;s three-year weighted average Return on Net Worth of just 7.58 percent is relatively modest, and FY24 profit after tax fell sharply, around 58 percent, from FY23 levels. At the price band of Rs 79 to Rs 84, the post-issue P\/E ratio works out to between roughly 69.30 times and 73.68 times based on diluted FY26 earnings, a valuation that independent reports have flagged as rich relative to the company&#8217;s recent earnings track record. The Rs 400 crore offer for sale by the promoter will not benefit the company, and promoter holding will decline from 85.57 percent to 61.63 percent after the issue, while the business remains exposed to cyclical OEM demand and raw material cost volatility.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Who_are_the_lead_managers_and_registrar_for_the_Hero_Motors_IPO\"><\/span><strong>Who are the lead managers and registrar for the Hero Motors IPO?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> ICICI Securities, DAM Capital Advisors and JM Financial are jointly serving as the book-running lead managers for the Hero Motors IPO. KFin Technologies Ltd. is the registrar to the issue and will handle the allotment process and crediting of shares to successful applicants&#8217; demat accounts.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Is_the_Hero_Motors_IPO_a_good_investment\"><\/span><strong>Is the Hero Motors IPO a good investment?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Hero Motors offers exposure to a Hero Group backed auto components business with a diversified EV and ICE portfolio and comprehensive design-to-manufacturing capabilities, which will appeal to investors interested in the automotive supply chain. At the same time, a sharp FY24 profit decline, a modest historical RoNW, a rich post-issue valuation in the high-60s to mid-70s P\/E range, and the large promoter offer for sale are factors that call for careful evaluation. As always, investors should study the RHP in detail and assess their own risk appetite before applying.<\/p>\n<div class=\"faq-schema\"><script type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\",\"@type\":\"FAQPage\",\"mainEntity\":[{\"@type\":\"Question\",\"name\":\"What are the Hero Motors IPO dates, and when will it list?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"The Hero Motors IPO opens for subscription on 16 September 2026 and closes on 18 September 2026. The allotment is expected to be finalised on 21 September 2026, and the shares are tentatively scheduled to list on both BSE and NSE around 23 September 2026.\"}},{\"@type\":\"Question\",\"name\":\"What is the price band and minimum investment for the Hero Motors IPO?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"The price band for the Hero Motors IPO is set at Rs 79 to Rs 84 per equity share, with a lot size of 178 shares. 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The Rs 400 crore offer for sale by the promoter will not benefit the company, and promoter holding will decline from 85.57 percent to 61.63 percent after the issue, while the business remains exposed to cyclical OEM demand and raw material cost volatility.\"}},{\"@type\":\"Question\",\"name\":\"Who are the lead managers and registrar for the Hero Motors IPO?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"ICICI Securities, DAM Capital Advisors and JM Financial are jointly serving as the book-running lead managers for the Hero Motors IPO. KFin Technologies Ltd. is the registrar to the issue and will handle the allotment process and crediting of shares to successful applicants' demat accounts.\"}},{\"@type\":\"Question\",\"name\":\"Is the Hero Motors IPO a good investment?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Hero Motors offers exposure to a Hero Group backed auto components business with a diversified EV and ICE portfolio and comprehensive design-to-manufacturing capabilities, which will appeal to investors interested in the automotive supply chain. At the same time, a sharp FY24 profit decline, a modest historical RoNW, a rich post-issue valuation in the high-60s to mid-70s P\/E range, and the large promoter offer for sale are factors that call for careful evaluation. 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The automotive flagship company of the Hero Group combines a Rs 600 crore fresh issue with a Rs 400 crore offer for sale by the prom<\/p>\n","protected":false},"author":29,"featured_media":239455,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1281],"tags":[],"class_list":["post-239456","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ipo"],"metadata":{"rank_math_internal_links_processed":["1"],"_thumbnail_id":["239455"],"rank_math_title":["Hero Motors IPO 2026: Price and Full Review"],"rank_math_description":["Hero Motors IPO opens 16 to 18 September 2026 at Rs 79 to Rs 84. 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