The Hero Motors IPO opened for subscription on Wednesday, 16 September, and will close on Friday, 18 September. The Hero Motors IPO price band has been fixed at ₹79– ₹84 per equity share, with a face value of ₹10 per share. The Hero Motors IPO lot size is 178 equity shares, and investors can bid in multiples of 178 shares thereafter. Hero Motors IPO subscription for the public issue will begin at 10:00 IST on Wednesday.
The Hero Motors IPO allotment basis is expected to be finalised on Monday, 21 September. The company is likely to initiate Hero Motors IPO refunds on Tuesday, 22 September, while shares are expected to be credited to the demat accounts of successful allottees on the same day.
The Hero Motors share price is expected to be listed on both the BSE and NSE on Wednesday, 23 September.
Hero Motors IPO GMP today
Hero Motors IPO GMP today is +5.5. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Hero Motors share price was indicated at ₹89.5 apiece, which is 6.55% higher than the IPO price of ₹84.
Over the past nine sessions, the IPO GMP has remained relatively stable, with overall movement limited to ₹-3 and the GMP range at ₹19. The current IPO GMP stands at ₹5, indicating relatively steady sentiment in the grey market.
Based on the latest GMP, the estimated listing price is around ₹90, compared with the Hero Motors IPO issue price of ₹84.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Hero Motors IPO subscription status
Hero Motors IPO subscription status was 43% on day 1. The retail portion is subscribed 44%, and the NII portion has been booked 72%; the QIBs portion received 19% bids. The employee portion received 98% bids.
The company has received bids for 3,83,94,696 shares against 8,86,42,911 crore shares, 17:00 IST, as per BSE data.
Hero Motors IPO review
Swastika Investmart: Strong EV prospects, but valuation remains a concern
Swastika Investmart highlighted Hero Motors’ position as a leading powertrain provider and its first-mover advantage in global e-bike CVT hubs. However, the brokerage cautioned that the IPO valuation of around 69–74x P/E is significantly higher than the peer average of 50.2x, leaving limited upside cushion.
The brokerage also noted that Hero Motors’ return on net worth (RoNW) has improved to 8.53%, while its EBITDA margin stands at around 10.2%. However, both metrics remain below those of key peers. Swastika Investmart also flagged customer concentration as a key risk, with the top 10 customers contributing around 73–78% of revenue.
Swastika Investmart has maintained a Neutral view on the Hero Motors IPO, citing the company’s strong business prospects and exposure to EV growth, while cautioning that the elevated valuation could limit the upside potential.
Master Capital Services: EV transition offers growth opportunity
Master Capital Services said the growing adoption of electric mobility presents a significant growth opportunity for Hero Motors. According to the brokerage, electric two-wheeler volumes are expected to grow at a 40–42% CAGR to 7.5–8.5 lakh units by FY31, while electric bicycle volumes are projected to expand at a 19–23% CAGR. The electric-drive motor market is also expected to grow at a 28–32% CAGR through CY31.
The brokerage said Hero Motors is well placed to benefit from these trends through its Powertrain Solutions and Alloys & Metallics (A&M) segments. Its Powertrain Solutions business, comprising Gears & Transmissions (G&T) and Bike Powertrain (BPT), has capabilities across continuously variable transmissions, EV transmissions, electric motors, integrated drive units and gear sets, providing exposure to both ICE and EV platforms.
Master Capital Services added that Hero Motors’ first-mover advantage in e-bike powertrains further strengthens its position in the expanding electric mobility market. The brokerage views the IPO as a potential long-term investment opportunity.
Hero Motors IPO details
Hero Motors IPO comprises a fresh issue of shares worth ₹600 crore and an Offer for Sale (OFS) of ₹400 crore.
At the upper end of the price band, Hero Motors is expected to command a market capitalisation of ₹3,815 crore. Following the OFS, the promoter holding is likely to fall to 61.63% from the current 85.57%.
The company plans to use the proceeds from the fresh issue to repay debt and purchase equipment for expanding its manufacturing facility in Uttar Pradesh.
ICICI Securities, DAM Capital and JM Financial are acting as the book-running lead managers for the IPO, while Kfin Technologies has been appointed as the registrar.
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.
