Hero Motors has received approval from the Securities and Exchange Board of India (SEBI) to proceed with initial public offering (IPO), as per a filing with the markets regulator on Monday, September 15.
Hero Motors IPO details
The auto component manufacturer aims to raise ₹1,200 crore through a mix of fresh equity issuance and an offer for sale (OFS).
Of the total, ₹800 crore will come from the fresh issue, which will be allocated towards repaying ₹285 crore of debt, investing ₹237 crore in new equipment at its Gautam Buddha Nagar plant, funding possible acquisitions, and meeting general corporate requirements. The ₹400-crore OFS will include ₹390 crore worth of shares offloaded by OP Munjal Holdings, and ₹5 crore each by Bhagyoday Investments and Hero Cycles.
The IPO, priced at a face value of ₹10 per equity share, will see 50% of the offering reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors, and 35% for retail individual investors. Hero Motors may also opt for a pre-IPO placement of up to ₹160 crore, which would reduce the size of the fresh issue accordingly.
ICICI Securities, DAM Capital Advisors, and JM Financial are acting as the book-running lead managers for the issue, with KFin Technologies serving as the registrar.
Led by Pankaj Munjal — cousin of Hero MotoCorp Chairman Pawan Munjal — Hero Motors had initially filed for a ₹900-crore IPO in August 2024. The company later re-submitted its Draft Red Herring Prospectus (DRHP) in July 2025, increasing the issue size to ₹1,200 crore.
The company produces engine and transmission parts for two-wheelers and serves leading global brands such as BMW, Ducati, and Harley-Davidson.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
