Hero Motors IPO ends with 6.66 times subscription
Hero Motors received bids for 58,97,26,638 shares as against 8,86,07,596 shares on offer. The issue was subscribed 6.66 times.
The qualified institutional buyers' (QIB) portion was subscribed 1.49 times, while the non-institutional investors' (NII) category was subscribed 9.86 times. The retail individual investors' (RII) segment was subscribed 8.23 times.
The issue opened for bidding on 16 September 2026 and closed on 18 September 2026. The price band of the IPO is fixed between Rs 79 and 84 per share.
The IPO comprised a fresh issue of equity shares worth up to Rs 600 crore and an offer aggregating up to Rs 400 crore by O P Munjal Holdings and Hero Cycle.
As of July 31, 2026, Hero Motors had total outstanding borrowings of Rs 289.54 crore. The company proposes to use Rs 190 crore from the fresh issue towards repayment/prepayment of certain outstanding borrowings, which should help reduce its debt burden. Another Rs 200 crore will be utilized for capital expenditure, primarily towards purchasing equipment required for capacity expansion at its Gautam Buddha Nagar, Uttar Pradesh, facility. The capex is expected to be deployed in phases through FY29. The remaining proceeds will be used to fund inorganic growth initiatives and for general corporate purposes.
The company is also setting up two additional manufacturing facilities in Ludhiana, Punjab and Bengaluru, Karnataka. Their post-IPO shareholding is expected to be around 61.63%.
Ahead of the IPO, Hero Motors, 15 August 2026, raised Rs 244.98 crore from anchor investors. The board allotted 2.91 crore shares at Rs 84 each to 16 anchor investors.
Hero Motors is an India-based automotive technology company engaged in designing, developing, manufacturing and supplying engineered powertrain solutions to automotive OEMs across India, Europe, the US and ASEAN markets. The company offers powertrain systems for electric and non-electric applications across two-wheelers, e-bikes, performance vehicles, off-road vehicles, electric and hybrid cars and heavy-duty vehicles. It operates across Powertrain Solutions and Alloys & Metallics segments and had six manufacturing facilities across India, the UK and Thailand as of March 31, 2026. In FY26, powertrain solutions contributed 53.67% of revenue, while Alloys & Metallics contributed 46.33%. The company caters to global customers, including BMW, Ducati, Enviolo, Formula Motorsport, Hummingbird EV and HWA.
The firm reported a consolidated net profit of Rs 41.17 crore and sales of Rs 1,188.35 crore for the twelve months ended on 31 March 2026.
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