HERO MOTORS LTD IPO: Company Review, Subscription and Allotment Updates
2026-09-16 — Company overview and issue details HERO MOTORS LTD IPO (ABOUT THE COMPANY) HERO MOTORS LTD – COMPANY BACKGROUND Hero Motors Ltd is part of the Hero group and was incorporated in the year 1998. It is an Autotech company with…
2026-09-16 — Company overview and issue details
HERO MOTORS LTD IPO (ABOUT THE COMPANY)
HERO MOTORS LTD – COMPANY BACKGROUND
Hero Motors Ltd is part of the Hero group and was incorporated in the year 1998. It is an Autotech company with focus on the design, development, and manufacture of engineered powertrain solutions. It caters to automotive OEMs across US, Europe, and India. It offers electric and non-electric powertrains for 2-wheelers and 4-wheelers. It has expertise in continuous variable transmission, EV transmission, electric motors, and integrated drive units. It caters to marquee global names like BMW, Ducati, Hummingbird etc.
The promoters of Hero Motors Ltd are Pankaj Munjal, Charu Munjal, Abhishek Munjal, and OP Munjal Holdings. The IPO will be a combination of a fresh issue and an offer for sale (OFS). The fresh issue proceeds will be used for repayment of loans, capex for its GBN facility in UP, and to fund inorganic growth. The OFS is entirely by promoter shareholders. The issue is being lead-managed by ICICI Securities, DAM Capital, and JM Financial; while KFIN Technologies Ltd (KFINTECH) is the IPO registrar.
HIGHLIGHTS OF THE IPO ISSUE OF HERO MOTORS LTD
Here are the key highlights of the public issue of Hero Motors Ltd.
The IPO is open from September 16th, 2026 to September 18th, 2026. It has a face value of ₹10 per share and the IPO price band has been fixed in the range of ₹79 to ₹84 per share.
The IPO of Hero Motors Ltd will be a combination of a fresh issue of shares and an offer for sale (OFS) by the promoter shareholders.
The Fresh Issue portion of the IPO comprises the issue of 7,14,28,571 shares (714.29 lakh shares), which at the upper price band of ₹84 per share, translates into a fresh issue size of ₹600.00 crore.
The offer for sale (OFS) portion of the IPO comprises the sale of 4,76,19,047 shares (476.19 lakh shares), which at the upper price band of ₹84 per share, translates into an OFS size of ₹400.00 crore.
Therefore, the overall IPO will comprise of the fresh issue and the offer for sale of 11,90,47,618 shares (1,190.48 lakh shares), which at the upper price band of ₹84 per share translates into an overall issue size of ₹1,000.00 crore.
Due to dilutive impact of the fresh issue and the offer for sale (OFS) by promoters, the promoter stake in the company will reduce from 85.57% pre-IPO to 61.63% post-IPO.
The IPO of Hero Motors Ltd will be listed on the NSE and the BSE on the IPO mainboard. The anchor allocation happened on September 15, 2026.
KEY DATES, INVESTOR ALLOCATION, AND LOT SIZES
Here are the key dates pertaining to the IPO of Hero Motors Ltd
| Event | Tentative Date |
|---|---|
| IPO Open Date | Wednesday, 16 September, 2026 |
| IPO Close Date | Friday, 18 September, 2026 |
| Basis of Allotment | Monday, 21 September, 2026 |
| Initiation of Refunds to non-allottees | Tuesday, 22 September, 2026 |
| Credit of Shares to Demat | Tuesday, 22 September, 2026 |
| Listing Date on NSE and BSE | Wednesday, 23 September, 2026 |
Data Source: Company RHP
Investors can apply either through their existing trading account or the ASBA application can be directly logged through the internet banking account. This can only be done through the authorized list of self-certified syndicate banks (SCSB).
The table below captures the gist of the allocation to various categories.
| Investor Category | Share Allocation | % Share |
|---|---|---|
| Reservation for Employees | Nil Shares | Not Applicable |
| Anchor Allocation | 3,57,14,284 shares | 28.73% of total IPO size |
| QIB Shares Offered | 2,53,16,456 shares | 20.36% of total IPO size |
| NII (HNI) Shares Offered | 1,89,87,342 shares | 15.27% of total IPO size |
| Retail Shares Offered | 4,43,03,798 shares | 35.64% of total IPO size |
| Total Shares Offered | 12,43,21,880 shares | 100.00% of Total IPO size |
Data Source: Security Parameters Filing (NSE)
The anchor portion, is carved out of the QIB portion and the QIB portion available in the IPO offer has been reduced proportionately. Please note that the above shares are final and may differ marginally from the original announcement.
Here is a quick look at the lot sizes applicable for the IPO of Hero Motors Ltd for various categories of investors.
| 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 |
| S-HNI (Max) | 66 | 11,748 | ₹ 9,86,832 |
| B-HNI (Min) | 67 | 11,926 | ₹ 10,01,784 |
It may be noted here that for the B-HNI category and for the QIB (qualified institutional buyer) category, there are no upper limits applicable. (1 Lot = 178 shares)
FINANCIAL HIGHLIGHTS OF HERO MOTORS LTD
The table captures the key financials of Hero Motors Ltd for last 3 financial years.
| Particulars | FY26 | FY25 | FY24 |
|---|---|---|---|
| Net Revenues (₹ in crore) | 1,188.35 | 1,089.59 | 1,064.39 |
| Sales Growth (%) | 9.06% | 2.37% | |
| Profit after Tax (₹ in crore) | 41.17 | 32.80 | 17.04 |
| PAT Margins (%) | 3.46% | 3.01% | 1.60% |
| Total Equity (₹ in crore) | 474.66 | 425.09 | 385.84 |
| Total Assets (₹ in crore) | 1,371.83 | 1,164.62 | 1,059.86 |
| Return on Equity (%) | 8.67% | 7.72% | 4.42% |
| Return on Assets (%) | 3.00% | 2.82% | 1.61% |
| Asset Turnover Ratio (X) | 0.87 | 0.94 | 1.00 |
| Earnings per share (₹) | 1.14 | 0.66 | 0.35 |
| EBITDA (₹ in Crore) | 147.78 | 114.00 | 86.28 |
| EBITDA Margins (%) | 12.44% | 10.46% | 8.11% |
Data Source: Company RHP filed with SEBI (FY refers to Apr-Mar period)
Between FY24 and FY26, the net margins have improved from 1.60% to 3.46%, while the EBITDA margins have also grown from 8.11% to 12.44%. The PAT margins have been fairly low for the auto component industry. That is more due to the high level of short-term debt that the company is carrying in its books to fund its working capital needs.
VALUATION METRICS OF HERO MOTORS LTD IPO
At the IPO price of ₹84 (upper band), the stock gets discounted at a P/E ratio of 73.7X, based on the latest FY26 EPS of ₹1.14. If one were to other similar companies in the peer group, the P/E ratios are on the lower side and the RONW is on the higher side. That does raise a question as to whether there is enough on the table for investors in the IPO.
Apart from the financial numbers, there are also some other areas where Hero Motors Ltd has an edge. It is one of the leading provides and also a preferred provider of powertrain solutions to the auto sector. Its growing presence in the fast-growing e-bike and EV market is also an advantage. Its model is also derisked as over 40% of its revenues come from outside India. Investors can look at the stock for the long-term, but valuations may be on the aggressive side.
2026-09-16 — Anchor allocation
HERO MOTORS LTD IPO (ANCHOR ALLOCATION 28.73%)
BRIEF ON ANCHOR ALLOCATION OF HERO MOTORS LTD
The anchor issue of Hero Motors Ltd saw a strong response on 15th September 2026 with 28.73% of the IPO size absorbed by anchors. Out of 12,43,21,880 shares (1,243.22 lakh shares) on offer in the IPO; anchors picked up 3,57,14,284 shares (357.14 lakh shares) accounting for 28.73% of the total IPO size. The entire anchor allocation was made at the upper end of the price band of ₹84 per share. This includes the face value of ₹10 per share plus a share premium of ₹74 per share. The anchor bidding opened and closed on 15th September 2026.
KEY POINTS TO NOTE IN THE ANCHOR ALLOCATION PROCESS
Here are the key details pertaining to the anchor bidding of Hero Motors Ltd
| Bid Date | September 15, 2026 |
|---|---|
| Shares Offered | 3,57,14,284 shares |
| Anchor Portion Size (₹ in crore) | ₹300.00 crore |
| Anchor lock-in period end date for 50% shares (30 Days) | Oct 20, 2026 |
| Anchor lock-in period end date for remaining shares (90 Days) | Dec 19, 2026 |
An anchor investor in an IPO is a qualified institutional buyer (QIB) like a foreign portfolio investor or mutual fund or insurance company or a sovereign fund which invests before the IPO is made available to the public as per SEBI regulations. It helps in price discovery.
MAJOR ANCHOR ALLOCATION INVESTORS IN HERO MOTORS LTD
On 15th September 2026, Hero Motors Ltd allotted 3,57,14,284 shares to a total of 24 anchor investors. The allocation was done at the upper IPO price band of ₹84 per share which resulted in overall anchor allocation of ₹300.00 crore. The anchors have already absorbed 28.73% of the total issue size of ₹1,044.30 crore, after factoring in the employee discount offered in the IPO, if any.
Listed below are the Top 10 IPO anchor investors who accounted for anchor collection of ₹239.24 crores, or, 79.75% of the overall anchor allocation of shares, one trading day ahead of the IPO of Hero Motors Ltd. The individual anchor allocation of top-10 investors is indexed descending on the number of shares allotted.
| Anchor Investors | No. of Shares | % of Anchor Portion | Value Allocated | |
|---|---|---|---|---|
| 01 | ICICI Pru Small Cap Fund | 89,27,590 | 25.00% | ₹ 74.99 |
| 02 | Kotak Multi-Asset Allocation Fund | 63,08,854 | 17.66% | ₹ 52.99 |
| 03 | Bank of India Small Cap Fund | 32,14,146 | 9.00% | ₹ 27.00 |
| 04 | JM Flexi Cap Fund | 29,76,160 | 8.33% | ₹ 25.00 |
| 05 | Kotak MNC Fund | 14,28,272 | 4.00% | ₹ 12.00 |
| 06 | ICICI Pru Life Insurance Company | 11,90,820 | 3.33% | ₹ 10.00 |
| 07 | 3P India Equity Fund | 11,90,820 | 3.33% | ₹ 10.00 |
| 08 | Edelweiss Life Insurance Company | 11,90,820 | 3.33% | ₹ 10.00 |
| 09 | Infinity Hybrid Long-Short Fund | 11,90,464 | 3.33% | ₹ 10.00 |
| 10 | ITI Flexi Cap Fund | 8,63,122 | 2.42% | ₹ 7.25 |
| Grand Total | 2,84,81,068 | 79.75% | ₹ 239.24 |
Data Source: BSE Filings (Value Allocated is ₹ in Crore)
The detailed and comprehensive report on the anchor allocation, with the mutual fund portion segregated, can be accessed on BSE by clicking on the link below.
Out of the 3,57,14,284 shares allocated to the anchors in the IPO, there was an allocation of 2,91,64,441 shares made to mutual funds regulated by SEBI. This anchor allocation to mutual funds was spread across 16 MF schemes of 7 asset management company (AMC). Mutual funds accounted for 81.66% of the overall anchor allocation.
Out of the 3,57,14,284 shares allocated to the anchors in the IPO, there was an allocation of 23,81,640 shares made to 2 life insurance companies regulated by IRDAI. Life insurance companies accounted for 6.67% of the anchor allocation.
The remaining anchor allocation was spread across FPIs, ODIs, SIFs, and alternate investment funds (AIFs).
NEXT STEPS IN HERO MOTORS LTD IPO
Post the closure of the IPO subscription on 18th September 2026, the basis of allotment will be finalized on 21st September 2026 and the refunds will be initiated on 22nd September 2026. In addition, the demat credits are expected to also happen on 22nd September 2026 and the stock will list on 23rd September 2026 on the NSE and the BSE. The credits to the demat account to the extent of shares allotted will happen by the close of 22nd September 2026 under ISIN (INE012G01022).
2026-09-19 — Day-3 subscription update
Hero Motors Ltd (Day-3 Final Subscription at 6.66 times)
HERO MOTORS LTD - IPO SUBSCRIPTION STATUS ON DAY-3
As of 7.10 pm on 18th September 2026, out of the 886.08 lakh shares on offer in the IPO (excluding anchor portion), Hero Motors Ltd saw bids for 5,897.27 lakh shares. This implies an overall subscription of 6.66X at a macro level. The granular break-up of subscriptions at close of Day-3 of the IPO of Hero Motors Ltd was as under:
| Employees (N.A.) | QIBs (1.49) | HNI / NII (9.86X) | Retail (8.23X) |
|---|
The subscriptions were led by the HNI / NII Investors followed by the Retail investors and the QIB investors in that order. QIB bids and NII bids typically gather most of the momentum only on the last day. That was the case in this IPO too. Both, the QIB portion and the HNI / NII portion saw bulk of the institutional, corporate and funded subscriptions come in on the last day of the IPO, although the total QIB subscription was less than impressive. The company had seen steady anchor participation a day ahead of the IPO opening with 28.73% of the IPO size absorbed by anchor investors. Here is the category-wise subscription. The overall subscription ratio excludes anchor portion.
| Investor Category | Subscription (times) | Shares Offered | Shares bid for | Total Amount (₹ in Crore) |
|---|---|---|---|---|
| Anchor Investors | 1.00 | 3,57,14,284 | 3,57,14,284 | 300.00 |
| Employee Quota | N.A. | 0 | 0 | 0.00 |
| QIB Investors | 1.49 | 2,53,16,456 | 3,77,55,046 | 317.14 |
| HNIs / NIIs | 9.86 | 1,89,87,342 | 18,71,38,520 | 1,571.96 |
| Retail Investors | 8.23 | 4,43,03,798 | 36,48,33,072 | 3,064.60 |
| Total | 6.66 | 8,86,07,596 | 58,97,26,638 | 4,953.70 |
Data Source: NSE / BSE (as of close of Day-3 of the IPO)
The IPO of Hero Motors Ltd was open up to September 18, 2026, and has closed for subscription as of the close of trading hours on September 18, 2026. The subscription ratios presented in the table above represent the final subscription numbers for each category and also for the IPO overall. Generally, the listing price of the IPO and the post-listing performance tend to get influenced by the extent of oversubscription of the IPO. However, it must also be noted that a higher subscription is not an automatic guarantee of a strong listing performance for the IPO stock. The final subscription ratio excludes anchor portion. Total bids as of the close (including anchor allocation) stood at ₹5,253.70 crore.
NEXT STEPS IN THE HERO MOTORS LTD IPO
Post the closure of the IPO subscription on 18th September 2026, the basis of allotment will be finalized on 21st September 2026 and the refunds will be initiated on 22nd September 2026. In addition, the demat credits are expected to also happen on 22nd September 2026 and the stock will list on 23rd September 2026 on the NSE and the BSE. The credits to the demat account to the extent of shares allotted will happen by the close of 22nd September 2026 under ISIN (INE012G01022).
2026-09-19 — Allotment guidance and next steps
Hero Motors Ltd (How to check allotment status online)
ABOUT THE HERO MOTORS LTD IPO
The IPO of Hero Motors Ltd opened on September 16th, 2026 and closed on September 18th, 2026. The IPO comprised of a fresh issue portion and an offer for sale (OFS) component of 11,90,47,618 shares (1,190.48 lakh shares) worth ₹1,000.00 crore at the upper band price of ₹84 per share. The allotment status will be finalized by EOD of September 21, 2026. Here is how to check allotment status for the IPO of Hero Motors Ltd. You can check IPO status on BSE or NSE or IPO Registrar website of KFIN Technologies Ltd (KFINTECH).
CHECKING ALLOTMENT STATUS OF HERO MOTORS LTD ON BSE WEBSITE
This is a common link for all mainboard IPOs. Click on BSE link for IPO allotment as below.
https://www.bseindia.com/investors/appli_check.aspx
Once you reach the page, here are the steps to follow.
Under Issue Type – Select Equity Option
Under Issue Name – Select Hero Motors Ltd from the drop-down box
Enter the Application Number / CAF exactly as in the acknowledgement slip
Alternatively, Enter your PAN (10-digit alphanumeric) number
Once this is done, you need to click on the Captcha to verify you are not a robot
Finally click on the Search Button
You can use either of the parameters to query; Application / CAF number or Investor PAN.
The allotment status will be displayed on the screen in front of you informing about the number of shares of Hero Motors Ltd allotted into your demat account. You can save a screenshot of the allotment status output for tallying with the demat account credits.
CHECKING ALLOTMENT STATUS OF HERO MOTORS LTD ON NSE WEBSITE
This is a common link for all IPOs. Click on NSE link for IPO allotment as below.
https://www.nseindia.com/invest/check-trades-bids-verify-ipo-bids
Once you reach the page, here are the steps to follow.
Under Issue Type – Select Equity & SME IPO Details Option
Under SELECT SYMBOL – Select HEROMOTORS from the drop-down box
Enter the Application Number / CAF exactly as in the acknowledgement slip
Enter your PAN (10-digit alphanumeric) number
Once both are entered, click on the Submit Button
You must input the Application / CAF number and the Investor PAN.
The allotment status will be displayed on the screen in front of you informing about the number of shares of Hero Motors Ltd allotted into your demat account. You can save a screenshot of the allotment status output for tallying with the demat account credits.
CHECKING ALLOTMENT STATUS OF HERO MOTORS LTD ON KFIN TECHNOLOGIES LTD (REGISTRAR TO THE IPO)
Visit the website of KFIN Technologies Ltd, which has been appointed as the registrar for the issue. You can access their website for IPO status by clicking on the link below:
https://kosmic.kfintech.com/ipostatus/
KFIN Technologies Ltd provides details of IPOs managed by them and where allotment status is finalized. Radio buttons allow you to opt to see all IPOs or just recent IPOs. The latter option reduces the list of IPOs to search. Once you click on Recent IPOs, dropdown shows recent active IPOs, where allotment status is finalized. Select Hero Motors Ltd.
THERE ARE 3 WAYS TO QUERY ALLOTMENT STATUS ON KFIN TECHNOLOGIES LTD
To Query by Application Number, check the appropriate box and follow these steps.
Enter the Application Number as it is
Enter the 6-digit Captcha Code
Click on Submit button
Allotment Status gets displayed on screen
Unlike in the past, now you do not have to select ASBA versus Non-ASBA option.
To Query by Demat Account, check the appropriate box and follow these steps.
First select the depository (NSDL / CDSL)
Enter the DP-ID (Alphanumeric for NSDL and Numeric for CDSL)
Enter the Client-ID in the second box
For NSDL, the Demat account is 2 strings; for CDSL it is just 1 string
Enter the 6-digit Captcha Code
Click on Submit button
Allotment Status gets displayed on screen
To Query by PAN, check the appropriate box and follow these steps.
Enter the 10-Character PAN number, available on your PAN card
After you enter the PAN number, Enter the 6-digit numeric Captcha Code
Click on Submit button
Allotment status gets displayed on screen
If captcha code is not clear; toggle for more options. Retain a screenshot of the allotment status output for future reference. This can be tallied with demat credit post allotment.
NEXT STEPS IN THE HERO MOTORS LTD IPO
Post the closure of the IPO subscription on 18th September 2026, the basis of allotment will be finalized on 21st September 2026 and the refunds will be initiated on 22nd September 2026. In addition, the demat credits are expected to also happen on 22nd September 2026 and the stock will list on 23rd September 2026 on the NSE and the BSE. The credits to the demat account to the extent of shares allotted will happen by the close of 22nd September 2026 under ISIN (INE012G01022).
Interested in applying for this IPO?
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