Its initial public offering, which opens for public subscription on 16 September, 2026.
FinTech BizNews Service
Mumbai, 15 September, 2026: Hero Motors Limited, which is one of India’s leading automotive technology companies engaged in designing, developing, manufacturing and supplying highly engineered powertrain solutions catering to automotive original equipment manufacturers (OEMs) in United States, Europe, India and ASEAN region, has garnered Rs 299.99 crore from anchor investors ahead of its initial public offering, which opens for public subscription on 16 September, 2026.
Some of the marquee institutions that participated in the anchor include ICICI Prudential Life Insurance Company Limited, 3P India Equity Fund 1M, Edelweiss Life Insurance Company Limited, Societe Generale – ODI, and ASAS Global Fund Incorporated VCC Sub Fund, amongst others.
Amongst equity-oriented schemes, the company has allocated shares to ICICI Prudential Smallcap Fund, Kotak Mahindra Trustee Co Ltd A/C Kotak MNC Fund and JM Financial Mutual Fund – JM Flexi Cap Fund, amongst others.
Out of the total allocation of 3,57,14,284 equity shares to the anchor investors, 2,91,64,441 were allocated to 7 domestic mutual funds through 16 schemes.
ICICI Securities Limited, DAM Capital Advisors Limited, and JM Financial Limited are the book-running lead manager, and KFin Technologies Limited is the registrar of the offer.
The equity shares are proposed to be listed on the NSE and BSE Limited.
IPO Details
Hero Motors Limited has fixed the price band of Rs 79 to Rs 84 per Equity Share of face value Rs.10 /- each for its maiden initial public offer.
The Initial Public Offering (“IPO” or “Offer”) of the Company will open on Wednesday, September 16, 2026, for subscription and close on Friday, September 18, 2026.
Investors can bid for a minimum of 178 Equity Shares and in multiples of 178 Equity Shares thereafter.
The IPO is a combination of a fresh issue of up to Rs 600 crore and an offer-for-sale of equity shares up to Rs 400 crore by Promoters - O P Munjal Holdings, and Hero Cycles Limited.
The proceeds from its fresh issuance worth Rs 190 crore will be used for repayment/ prepayment/redemption in full or in part, of certain outstanding borrowings availed by the company, Rs 200 crore for capital expenditure of the company through purchase of equipment required for expansion in capacity of its Gautam Buddha Nagar, Uttar Pradesh facility, funding inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes.
The Offer is being made through the book-building process, in compliance with SEBI ICDR Regulations, wherein not more than 50% of the net offer will be available for allocation to qualified institutional buyers (QIBs), not less than 15% to non-institutional bidders (NIIs), and not less than 35% to retail individual bidders (RIIs).
Company Information
The company is one of India’s leading automotive technology companies engaged in designing, developing, manufacturing and supplying highly engineered powertrain solutions catering to automotive original equipment manufacturers (OEMs) in United States, Europe, India and ASEAN region (Source - CRISIL Report).
The company is a fully integrated powertrain systems provider offering comprehensive solutions including services for designing, prototyping, validating, developing, and delivering system-level and component-level powertrain solutions for both electric as well as non-electric powertrains.
Its offerings find application in two-wheelers, performance automotive, e-bikes, off-road vehicles, electric and hybrid cars, heavy duty vehicles, and electric vertical take-off and landing (eVTOL) categories. The company caters to requirements of its global customers such as BMW AG (BMW), Ducati Motor Holding S.P.A. (Ducati), Enviolo International Inc (enviolo), Formula Motorsport Ltd (Formula Motorsport), HUMMINGBIRDEV Inc. (Hummingbird EV), HWA AG (HWA) and leading global electric bicycle (e-bike) manufacturers and other mobility applications such as aerospace.
