Hero Motors IPO

Mainboard • Equity • Fresh capital cum OFS

LISTEDMAINBOARDEquity

Hero Motors

Price band

₹79 – ₹84

Lot size

178 shares

Min investment

₹14,952

Issue size

₹1,000 Cr

About the company

Hero Motors Limited was started in April 1998. It is an automotive technology company that designs, develops, makes and supplies powertrain solutions to vehicle manufacturers. A powertrain is everything that turns engine or motor power into movement at the wheels, so the company supplies the working heart of a vehicle rather than a body part. It works on both electric and non-electric powertrains, for two wheelers, performance cars, e-bikes, off-road vehicles, electric and hybrid cars, heavy duty vehicles and even eVTOL, which are electric vertical take off aircraft. It offers both complete systems and individual components, covering design, prototyping, validation, development and delivery. Its known areas are continuously variable transmissions, EV transmissions, electric motors, integrated drive units and gear sets. The business runs in two segments. Powertrain Solutions covers Gears and Transmissions for automotive and mobility use, and Bike Powertrain for micro-mobility and global e-bike makers. The Alloys and Metallics segment supplies sheet metal and related work. The company describes itself as a first mover in the global e-bike powertrain market and as the only manufacturer in India producing and exporting CVT hubs and integrated electric powertrain products for e-bikes. It sells to customers in the United States, Europe, India and the ASEAN region.

Hero Motors Limited designs and manufactures engineered powertrain solutions for automotive OEMs in the United States, Europe, India and ASEAN, covering both electric and non-electric powertrains. It specialises in continuously variable transmissions, EV transmissions, electric motors and gear sets, and is the only Indian manufacturer exporting CVT hubs and integrated electric powertrains for e-bikes.

IPO details

Issue price: ₹84
Price band: ₹79 – ₹84
Face value: ₹10
Lot size: 178
Min investment: ₹14,952
Issue size: ₹1,000 Cr
Sale type: Fresh capital cum OFS
Listing on: BSE, NSE
BSE scrip code: 7971
NSE symbol: HEROMOTORS.NS

Lot size & investment by category

APPLICATION	LOTS	SHARES	AMOUNT
Retail (Min)	1	178	₹14,952
Retail (Max)	13	2,314	₹1,94,376
S-HNI (Min)	14	2,492	₹2,09,328
B-HNI (Min)	67	11,926	₹10,01,784

Investor reservation

CATEGORY	RESERVED
QIB	Not more than 50% of the Offer
Retail	Not less than 35% of the Offer
NII	Not less than 15% of the Offer

Objects of the issue

1Repayment/prepayment/redemption, in full or in part, of certain outstanding borrowings availed by Company190.00

2Capital expenditure of Company through purchase of equipment for expansion in capacity of Gautam Buddha Nagar, Uttar Pradesh facility200.00

3Funding inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes(

Financials

Rs. Crore • restated

METRIC	31 Mar 2026	31 Mar 2025	31 Mar 2024
Assets	1,371.83	1,164.62	1,059.86
Total Income	1,216.74	1,111.23	1,083.42
Profit After Tax	41.17	32.80	17.04
EBITDA	147.78	114.00	86.28
NET Worth	482.45	423.95	385.44
Reserves and Surplus	116.32	67.71	32.26
Total Borrowing	400.79	407.62	304.00

Key performance indicators

P/E Ratio

92.31

EPS (₹)

0.91

RoE

8.56%

RoCE

19.77%

RoNW

8.53%

PAT Margin

3.46%

EBITDA Margin

12.44%

Debt / Equity

0.83

NAV (₹)

12.72

✓ Strengths

• Profit has more than doubled in two years, from Rs 17.04 crore in FY2024 to Rs 32.80 crore in FY2025 and Rs 41.17 crore in FY2026.

• EBITDA has grown strongly over the same period, from Rs 86.28 crore to Rs 147.78 crore.

• Being the only manufacturer in India producing and exporting CVT hubs and integrated electric powertrains for e-bikes is a genuine technical niche that took years to build.

• It sells into the United States, Europe, India and ASEAN, so it is not dependent on the Indian vehicle market alone.

• The product range spans both electric and non-electric powertrains, so it earns from today's vehicles while being positioned for the shift to EVs.

• It supplies across many vehicle types, from two wheelers and e-bikes to hybrid cars, heavy duty vehicles and eVTOL applications.

• RoCE was 19.77% and net worth grew from Rs 385.44 crore in FY2024 to Rs 482.45 crore in FY2026.

• Rs 190 crore of the issue money repays borrowings and the rest goes into expanding capacity at its Gautam Buddha Nagar facility in Uttar Pradesh.

⚠ Risks

• This is the most expensive issue in the current batch by a wide margin, at about 92.31 times earnings on an EPS of only Rs 0.91.

• Return on net worth is only 8.53%, which is very low against that valuation.

• The profit margin is thin at 3.46%, and sales growth is slow. Total income rose only about 9% in FY2026, from Rs 1,111.23 crore to Rs 1,216.74 crore.

• Debt is high and is not coming down. Total borrowing was Rs 400.79 crore as on 31 March 2026 against a net worth of Rs 482.45 crore, and it has stayed above Rs 400 crore for two years.

• A large part of the business depends on European and American demand for e-bikes and vehicles, so it carries currency risk and exposure to those economic cycles.

• Powertrain work is won programme by programme from vehicle makers. Losing a programme, or a customer delaying a launch, removes that revenue for years.

• The eVTOL and advanced EV applications are early stage markets, so the money and effort going into them may take a long time to earn.

• This is a fresh issue combined with an offer for sale, and promoter holding falls from 84.67% to 61.63% after the issue.

Promoters & holding

Pankaj Munjal, Charu Munjal, Abhishek Munjal and O P Munjal Holdings

Pre-issue promoter holding

84.67%

Post-issue promoter holding

61.63%

Data refreshed 07 Nov 2026, 04:56 pm IST. GMP is unofficial market sentiment, not investment advice.