Hero Motors is set to launch its Rs 1,000 crore IPO on September 16, 2026, with the grey market premium (GMP) indicating a potential listing gain of 27%. The IPO, which closes on September 18, comprises a fresh issue of 7.14 crore shares worth Rs 600 crore and an offer for sale of 4.76 crore shares worth Rs 400 crore.
The IPO price band is set at Rs 79–Rs 84 per share, with a minimum lot size of 178 shares. At the upper end, retail investors will need to invest at least Rs 14,952 for one lot. The IPO is expected to list on the NSE and BSE on September 23, 2026, with ICICI Securities Ltd. as the lead manager and Kfin Technologies Ltd. as the registrar.
Currently, the IPO commands a GMP of Rs 23, translating to a 27% premium over the upper price band of Rs 84. This suggests an estimated listing price of around Rs 107 if the GMP holds steady until the listing date. However, investors should note that GMP is an unofficial indicator and may fluctuate.
The proceeds from the IPO will be used to repay or prepay certain borrowings, fund capital expenditure for expanding the facility in Gautam Buddha Nagar, and support the company's inorganic growth plans, including acquisitions and strategic initiatives.
Hero Motors reported a 9% increase in total income to Rs 1,216.74 crore in FY26, with profit after tax rising 26% to Rs 41.17 crore. The company, incorporated in 1998, specializes in powertrain solutions and has established relationships with major global OEMs.
Background
Hero Motors, founded in 1998, has carved a niche in the automotive technology sector, particularly in powertrain solutions. The company's strategic partnerships with global OEMs and its focus on both electric and non-electric applications position it well in the evolving automotive landscape.
The IPO's success could further bolster Hero Motors' position in the market. Investors will be closely watching the listing performance and the company's strategic use of IPO proceeds in the coming months.
