The Hero Motors IPO has entered its second day of bidding, with investors showing healthy interest in the public issue. The IPO is currently commanding a 16% premium in the grey market (GMP), indicating that market participants are pricing in the possibility of a positive listing—provided the GMP trend holds through listing day.
On the first day of bidding, the IPO was subscribed 1.39 times overall, against the 8.86 crore shares on offer. The retail investor portion saw stronger demand, with the category subscribed 2.23 times against the 4.43 crore shares reserved for retail investors.
The three-day bidding window will remain open until September 18, 2026, giving investors time to assess demand, valuation and the company's fundamentals before making a decision.
The Rs 1,000 crore Hero Motors IPO is a book-built issue comprising a fresh issue of 7.14 crore shares worth Rs 600 crore and an offer for sale (OFS) of 4.76 crore shares worth Rs 400 crore.
The IPO has a price band of Rs 79–Rs 84 per share, with a minimum lot size of 178 shares. At the upper end of the price band, retail investors will need to shell out a minimum of Rs 14,952 to bid for one lot.
The allotment for the Hero Motors IPO is expected to be finalised on September 21, 2026. Hero Motors IPO will list on the NSE and BSE with a tentative listing date fixed as September 23, 2026.
ICICI Securities Ltd. is the book-running lead manager for the issue, while Kfin Technologies Ltd. is acting as the registrar.
Hero Motors raised Rs 300 crore from anchor investors by allotting 3,57,14,284 equity shares at Rs 84 per share.
Read more: NSE IPO Tracker: Catch all the highlights here
Hero Motors IPO Subscription Status
On the first day of bidding, the Hero Motors IPO was subscribed 1.39 times overall, against the 8.86 crore shares offered.
Retail Individual Investors (RIIs): The retail portion was subscribed 2.23 times, compared with 4.43 crore shares on offer.
Non-Institutional Investors (NIIs): The NII portion was subscribed 1.25 times, against 1.89 crore shares offered.
Qualified Institutional Buyers (QIBs): The QIB portion received bids for 1% of the 2.53 crore shares reserved for the category.
Hero Motors IPO GMP
The Hero Motors IPO is currently commanding a Grey Market Premium (GMP) of Rs 13, indicating a 15% premium over the upper price band of Rs 84. Based on the prevailing GMP, the estimated listing price is around Rs 97. However, GMP is an unofficial market indicator and can fluctuate before the IPO listing. It does not guarantee the actual listing price or investor returns.
Hero Motors IPO Issue Objectives
The company plans to use a portion of the IPO proceeds to repay, prepay or redeem certain outstanding borrowings, either fully or partially. It will also allocate funds towards capital expenditure, including purchasing equipment to expand the capacity of its facility in Gautam Buddha Nagar, Uttar Pradesh.
The remaining proceeds will be used to support the company’s inorganic growth plans, including potential acquisitions and other strategic initiatives. A portion of the funds will also be utilised for general corporate purposes.
Financial Performance
Hero Motors reported a 9% increase in total income, rising from Rs 1,111.23 crore in FY25 to Rs 1,216.74 crore in FY26. The company’s profit after tax (PAT) grew 26%, from Rs 32.80 crore in FY25 to Rs 41.17 crore in FY26, reflecting an improvement in profitability during the year.
About Hero Motors
Incorporated in April 1998, Hero Motors Limited is an automotive technology company engaged in designing, developing and manufacturing powertrain solutions for OEMs across the US, Europe, India and ASEAN. Its products cater to electric and non-electric applications across two-wheelers, e-bikes, passenger and commercial vehicles, off-road vehicles and eVTOLs.
The Company specializes in CVTs, EV transmissions, electric motors, integrated drive units and gear sets, and has a strong position in the global e-bike powertrain market. It is the only Indian manufacturer producing and exporting CVT hubs and integrated electric powertrain products for e-bikes. Its operations comprise Powertrain Solutions—including Gears & Transmissions (G&T) and Bike Powertrain (BPT)—and Alloys & Metallics (A&M), which supplies sheet metal and tubular components to automotive OEMs.
Hero Motors has established relationships with customers including BMW, Ducati, enviolo, Formula Motorsport, Hummingbird EV and HWA, supported by in-house engineering and global technology partnerships. As of March 31, 2026, the Company had 1,388 permanent employees and 707 contract labourers.
Should You Subscribe?
According to Anand Rathi, Hero Motors has built a differentiated position in automotive technology with capabilities across design, engineering, prototyping and manufacturing. Its portfolio spans CVTs, EV transmissions, electric motors, drive units and gear sets, giving it exposure to both ICE and electric mobility. The company also has a strong presence in e-bike powertrains, while investments in Hewland and its Yamaha Motor Japan JV strengthen its transmission and electric motor capabilities. With operations across India, the UK and Thailand, Hero Motors has a global footprint.
"At the upper price band, the company is valuing at P/E of 92.6x and EV/EBITDA of 34.38x with to its FY26 earnings and market cap of Rs.38,154 million post issue of equity shares. We believe that the IPO is fully priced and recommend a “Subscribe-Long Term” rating to the IPO."
According to Master Capital Services, India’s automotive and two-wheeler industry is poised for healthy growth, driven by rising vehicle demand, premiumisation and increasing adoption of advanced powertrain technologies. The two-wheeler industry is projected to grow at 6–7% CAGR to 29–31 million units by FY31, while electrification is expected to create significant new growth opportunities. Hero Motors is positioned to benefit from these trends through its Powertrain Solutions and Alloys & Metallics businesses, with exposure to both ICE and EV platforms. Its expertise in electric motors, EV transmissions and e-bike powertrains provides further exposure to the rapidly expanding electric mobility segment. Investors may consider the IPO as a potential long-term investment opportunity.
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