Strong response to Hero Motors Limited's IPO - subscribed 3.37 times on Day 2 of IPO

  Retail investors portion subscribed 5.02 times on Day 2

 

• Issue closes on Friday, September 18, 2026, for bidding

 

17 September, Mumbai: The Initial Public Offering of Hero Motors Limited was subscribed 3.37 times on the second day of bidding, demonstrating strong demand from retail and non-institutional investors for this IPO.

 

The issue received bids of 29,81,70,648 equity shares against the offered 8,86,07,596 equity shares, according to data available on the stock exchanges.

 

Retail Portion and Non-institutional investors portion were subscribed 5.02 times and 3.9 times, respectively. Qualified Institutional Buyers (QIB) was subscribed 0.07 times.

 

The issue kicked off for subscription on Wednesday, September 16, 2026, and will close for subscription on Friday, September 18, 2026.

 

Brokerage houses recommend Hero Motors Limited

 

Leading brokerage firms like Anand Rathi, BP Wealth and Ventura Securities have given their “Subscribe” recommendation to Hero Motors Ltd, 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.

 

Anand Rathi highlights the company is an India-based automotive technology company engaged in designing, developing, manufacturing and supplying highly engineered powertrain solutions to automotive original equipment manufacturers (OEMs) across the United States, Europe, India and ASEAN.

 

On the valuation front, at the upper price band, the company is valued at a P/E of 92.6 times and EV/EBITDA of 34.38 times with its FY26 earnings. Recommend “Subscribe - Long Term”.

 

BP Wealth highlights the company primarily operates as a B2B supplier to OEMs and provides capabilities across the powertrain value chain, including design, development, prototyping, validation, and manufacturing.

 

On the valuation front, at the upper price band, the stock is valued at a P/E of 73.7 times FY26, based on diluted EPS of Rs. 1.1. Considering the company's expanding e-mobility portfolio, global OEM relationships, investments in technology and manufacturing capabilities and strong improvement in profitability, the company's growth prospects remain favourable. Recommend "SUBSCRIBE".

 

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.