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Anand Rathi Report
10 Key Things to Know Before Subscribing to Hero Motors IPO
1. IPO dates
Hero Motors IPO opens for subscription today, September 16, 2026, and closes on September 18, 2026. The shares of the issue are tentatively scheduled to list on both NSE and BSE on Sep. 23.
2. IPO size
Hero Motors is a main board IPO worth Rs 1,000 crore, a combination of fresh issue 7.14 crore shares aggregating to Rs 600 crores and offer for sale of 4.76 crore shares aggregating to Rs 400 crores.
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3. Price band
An automotive technology company has fixed the price band in the range of Rs 79 to Rs 84 per equity share with a face value of Rs 10 each.
4. Minimum lot size and investment
Investors can bid for a minimum of 178 shares and in multiples thereof. At the upper price band investors would require a minimum investment of Rs 14,952.
5. Objectives of the issue
The company plans to utilize fresh issue proceeds for:
- Repayment and prepayment of borrowings
- Capital expenditure for equipment purchase
- Funding inorganic growth opportunities and acquisitions
- General corporate purposes.
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6. BRLMs
ICICI Securities, DAM Capital Advisors, JM Financial are the book running lead managers for the issue, while KFin Technologies is the registrar to the offer.
7. About the company
Hero Motors is an automotive technology company that designs and manufactures powertrain solutions for EV and non-EV vehicles. It serves global OEMs across the US, Europe, India and ASEAN and counts companies such as BMW, Ducati, Hero MotoCorp, enviolo and HWA among its customers. The company operates in: Powertrain Solutions, Alloys & Metallics (A&M).
8. Financial performance
The company has reported consistent growth:
- Revenue from operations increased to Rs 1,188.4 crore in FY26 from Rs 1,089.6 crore in FY25 and Rs 1,064.4 crore in FY24.
- Ebitda rose to Rs 121.4 crore in FY26 from Rs 92.4 crore in FY25.
- PAT jumped to Rs 41.2 crore in FY26 from Rs 32.7 crore in FY25 and Rs17 crore in FY24.
9. Peer comparison
Sona BLW, UNO Minda, Varroc Engineering, Endurance Technologies and CIE Automotive are the other listed peers in the segment.
10. Key growth drivers and strategies and risks
- Strong positioning in the fast-growing e-mobility ecosystem
- Only Indian manufacturer exporting CVT hubs to global e-bike OEMs
- Expansion of electric drive units (EDUs), EV transmissions and motors
- Leveraging UK-based Hewland acquisition for advanced transmission solutions
- JV with Yamaha Motor Japan for electric motors
- Expansion into ASEAN and other international markets
Major Risks
- High dependence on Europe, contributing about 34% of revenue
- Customer concentration, with top 10 customers contributing nearly 73% of revenue
- Supplier concentration risk
- Rapid technological changes in EV and mobility markets
- Manufacturing and operational risks
Brokerage View
Anand Rathi believes the Hero Motors IPO is fully priced at the upper band but recommends "Subscribe for Long Term" due to the company's differentiated position in EV powertrain solutions, global customer base and long-term growth opportunities.
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