Hero Motors IPO Day 2: Hero Motors IPO will remain in focus on Friday, September 18, as the Rs 1,000 crore public issue enters its final day of bidding.
The IPO received a strong response on Day 1, with the issue subscribed 3.37 times overall by the end of Thursday. The retail portion was subscribed 5.02 times, while the NII portion was subscribed 3.90 times. The QIB portion, however, saw subscription of just 0.07 times.
The Hero Motors IPO opened for subscription on September 16 and will close on September 18. The company has fixed the price band at Rs 79 to Rs 84 per share. The issue comprises a fresh issue of 7.14 crore shares aggregating to Rs 600 crore and an offer for sale of 4.76 crore shares worth Rs 400 crore.
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Hero Motors IPO Day 2 Subscription Status
The Hero Motors IPO subscription will begin at 10 am on Friday, September 18. Investors will closely track the bidding response across qualified institutional buyers, non-institutional investors and retail investors as the issue enters its final day.
Hero Motors IPO Details
Hero Motors IPO is a book-built issue of Rs 1,000 crore. The public issue comprises a fresh issue of 7,14,28,571 shares aggregating up to Rs 600 crore and an offer for sale of 4,76,19,047 shares aggregating up to Rs 400 crore.
The bidding opened on September 16 and will close on September 18. The company has set the price band at Rs 79 to Rs 84 per share, with a face value of Rs 10 per share.
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The lot size is 178 shares. At the upper price band of Rs 84, retail investors need to invest Rs 14,952 for one lot.
ICICI Securities is the book-running lead manager to the issue, while Kfin Technologies is the registrar.
Hero Motors IPO GMP Today
The grey market premium, or GMP, of Hero Motors IPO is an unofficial indicator of market sentiment ahead of listing.
At a GMP of Rs 5.5, the implied listing price would be around Rs 89.5, compared with the upper IPO price band of Rs 84 per share.
GMP is not an official price discovery mechanism and can fluctuate before listing. Investors should therefore consider the company's financial performance, valuation and business prospects alongside grey market trends.
Hero Motors IPO Allotment, Refund, Listing Date
The allotment of Hero Motors IPO shares is expected to be finalised on September 21. The refund process for unsuccessful bidders is scheduled to begin on September 22, while shares are expected to be credited to successful investors' demat accounts on the same day.
Hero Motors shares are scheduled to list on the BSE and NSE on September 23.
Hero Motors IPO Price Band, Lot Size
Hero Motors has fixed the IPO price band at Rs 79 to Rs 84 per share. Investors can bid for a minimum of 178 shares and in multiples thereof.
At the upper price band of Rs 84, one lot requires an investment of Rs 14,952. A retail investor can bid for up to 13 lots, or 2,314 shares, involving an investment of Rs 1,94,376.
For small HNI investors, the minimum application is 14 lots, or 2,492 shares, requiring Rs 2,09,328. The maximum application under the S-HNI category is 66 lots, while the B-HNI category starts at 67 lots.
Hero Motors IPO Issue Reservation
Hero Motors IPO comprises a total issue size of 11,90,47,618 shares. Of this, 5,95,23,809 shares, or 50% of the issue, have been reserved for QIBs. Another 1,78,57,143 shares, or 15%, have been allocated to NIIs, while 4,16,66,666 shares, or 35%, have been reserved for retail investors.
Of the QIB portion, 3,57,14,284 shares, representing 30% of the total issue, were allocated to anchor investors, while 2,38,09,525 shares were reserved for QIBs other than anchor investors.
Hero Motors raised Rs 300 crore from anchor investors ahead of the IPO, with the anchor bidding taking place on September 15.
Hero Motors IPO: Objects Of The Issue
Hero Motors plans to use the net proceeds from the fresh issue towards repayment, prepayment or redemption of certain outstanding borrowings. The company has earmarked Rs 190 crore for this purpose.
Another Rs 200 crore has been allocated towards capital expenditure for purchasing equipment to expand the capacity of its Gautam Buddha Nagar facility in Uttar Pradesh.
The remaining proceeds will be used for funding inorganic growth through unidentified acquisitions and other strategic initiatives, besides general corporate purposes.
About Hero Motors
Incorporated in April 1998, Hero Motors is an automotive technology company engaged in designing, developing, manufacturing and supplying engineered powertrain solutions to automotive original equipment manufacturers across the US, Europe, India and the ASEAN region.
The company provides integrated solutions for electric and non-electric powertrains across two-wheelers, performance automotive, e-bikes, off-road vehicles, electric and hybrid cars, heavy-duty vehicles and eVTOL applications.
Hero Motors offers system-level and component-level solutions covering design, prototyping, validation, development and delivery of powertrain systems. Its capabilities include continuously variable transmissions, EV transmissions, electric motors, integrated drive units and gear sets.
The company has a presence in the global e-bike powertrain market and manufactures and exports CVT hubs and integrated electric powertrain products for e-bikes from India.
Hero Motors operates through its Powertrain Solutions and Alloys and Metallics segments. Powertrain Solutions comprises Gears and Transmissions, which serves automotive and mobility applications, and Bike Powertrain, which focuses on micro-mobility applications and global e-bike manufacturers.
The Alloys and Metallics segment provides sheet metal and tubular assemblies and components primarily to automotive OEMs.
The company has established relationships with global customers including BMW, Ducati, enviolo, Formula Motorsport, Hummingbird EV and HWA, along with global e-bike manufacturers.
As of March 31, 2026, Hero Motors had 1,388 permanent employees and 707 contract labourers.
Hero Motors Financials
Hero Motors' total income increased to Rs 1,216.74 crore in FY26 from Rs 1,111.23 crore in FY25. Profit after tax rose to Rs 41.17 crore from Rs 32.80 crore during the same period.
The company's EBITDA increased to Rs 147.78 crore in FY26 from Rs 114 crore in FY25. Net worth stood at Rs 482.45 crore as of March 31, 2026, compared with Rs 423.95 crore a year earlier.
Hero Motors IPO Competitive Strengths
Hero Motors has highlighted its R&D and engineering capabilities, long-term relationships with global OEMs and presence in the global e-mobility industry among its key strengths.
The company's diversified powertrain portfolio covers multiple automotive and mobility applications, while its focus on electric bikes and premium two-wheelers provides exposure to growing segments of the mobility industry.
Hero Motors IPO: Should You Subscribe?
The Hero Motors IPO combines a Rs 600 crore fresh issue with a Rs 400 crore offer for sale. The company intends to use a significant portion of the fresh issue proceeds towards debt repayment and capacity expansion.
Its business model is spread across multiple powertrain applications and geographies, with customers including global automotive and mobility companies. At the same time, investors will need to assess the company's profitability, borrowings, valuation at the IPO price band and execution of its planned expansion before deciding whether the issue fits their investment objectives.
The Day 2 subscription trend, particularly the response from QIBs, will also be closely watched as the IPO moves towards its final day.
Hero Motors IPO: What Investors Should Watch
The QIB response will be an important factor on Day 2 after the institutional portion recorded 0.07 times subscription at the end of Day 1. Any change in institutional demand could significantly affect the overall subscription level before the issue closes.
Investors will also track the pace of NII and retail bidding after both categories recorded subscription of more than four times on Day 1.
The company's proposed Rs 200 crore capital expenditure for capacity expansion at Gautam Buddha Nagar and Rs 190 crore allocation towards debt repayment will also remain key aspects of the IPO story.
The latest GMP movement, meanwhile, is likely to remain a closely watched indicator ahead of the September 23 listing, although it remains unofficial.
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