- Hero Motors plans a Rs 1,000 crore IPO opening on September 16 and closing on September 18
- The IPO price band is set between Rs 79 and Rs 84 per share, valuing the company near Rs 3,815 crore
- Hero Motors' shares hold a grey market premium near 29%, implying potential listing gains of 28.57%
Hero Motors is set to enter the primary market this week with a Rs 1,000 crore initial public offering (IPO), as its shares command a grey market premium (GMP) of nearly 29% ahead of the issue opening.
The IPO will open for subscription on September 16 and close on September 18, with the anchor book opening a day earlier.
The company has fixed a price band of Rs 79 to Rs 84 per share. At the upper end, Hero Motors is seeking a valuation of around Rs 3,815 crore.
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According to the IPO Watch's latest reported GMP of about Rs 24, the implied grey market price stands near Rs 108, pointing to a potential listing gain of roughly 28.57% over the upper price band.
However, GMP is based on unofficial data, and does not guarantee the actual listing price.
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What Is Behind The IPO?
Hero Motors is an automotive technology and powertrain solutions company. It supplies engineered systems to global automotive and mobility companies, including BMW and Ducati.
Unlike Hero MotoCorp, the company operates primarily as a business-to-business automotive components manufacturer.
The Rs 1,000 crore issue comprises a Rs 600 crore fresh issue and a Rs 400 crore offer for sale.
Of the fresh proceeds, Rs 190 crore will go towards debt repayment, while Rs 200 crore will fund equipment purchases for capacity expansion at its Gautam Buddha Nagar facility in Uttar Pradesh.
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Financial Performance Shows Improvement
Hero Motors reported a marked improvement in profitability during the financial year ended March 2026. The company's profit rose 72.9% year-on-year to Rs 43.6 crore from Rs 25.2 crore in FY25.
Revenue also increased during the period. The company recorded revenue of Rs 1,188.4 crore in FY26, up 9.06% from Rs 1,089.6 crore in the previous financial year.
The stronger profit growth compared with revenue indicates an improvement in the company's earnings performance. However, investors should also consider the company's debt position while assessing the IPO.
Hero Motors had total outstanding borrowings of Rs 289.5 crore as of July 2026.
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