Hero Motors IPO: Raises ₹300 crore from anchor investors; GMP rises 22% ahead of issue opening

Hero Motors, an automotive technology company, has raised ₹300 crore from anchor investors ahead of the opening of its maiden initial public offering (IPO) today. The ₹1,000 crore IPO will remain open for subscription until September 18, while the tentative date for listing of the stock on the BSE and NSE is September 23.

The grey market premium (GMP) of Hero Motors IPO rose to 22% on Wednesday, ahead of the opening of its subscription. At the time of reporting, the stock was commanding a GMP of ₹19, indicating an estimated listing price of ₹103 and a listing gain of 22.62%, according to data available on InvestorGain.

The O P Munjal Holdings-owned automotive parts maker informed the stock exchanges that it allotted 3.57 crore equity shares to anchor investors at ₹84 apiece, the upper end of the IPO price band of ₹79-84 per share.

The anchor book saw participation from several institutional investors, including ICICI Prudential Life Insurance Company, 3P India Equity Fund 1M, Edelweiss Life Insurance Company, Societe Generale – ODI and ASAS Global Fund Incorporated VCC Sub Fund.

Among equity-oriented schemes, Hero Motors allocated shares to ICICI Prudential Smallcap Fund, Kotak Mahindra Trustee Co Ltd A/C Kotak MNC Fund and JM Financial Mutual Fund – JM Flexi Cap Fund, among others.

All you need to know about Hero Motors IPO

The IPO comprises a fresh issue of up to ₹600 crore and an offer-for-sale (OFS) of equity shares worth up to ₹400 crore by promoters O P Munjal Holdings and Hero Cycles.

As per the IPO papers filed with Sebi, the company has reserved 50% of the offer for qualified institutional buyers (QIBs), 35% for retail investors and the remaining 15% for non-institutional investors (NIIs).

Of the fresh issue proceeds, Hero Motors plans to use ₹190 crore towards repayment, prepayment or redemption, in full or in part, of certain outstanding borrowings. As of March 31, 2026, the company had total borrowings of ₹400.79 crore, compared with ₹407.62 crore a year earlier.

Another ₹200 crore has been earmarked for capital expenditure through the purchase of equipment for capacity expansion at its Gautam Buddha Nagar facility in Uttar Pradesh.

The company has also proposed to use the proceeds towards funding inorganic growth through unidentified acquisitions and other strategic initiatives, along with general corporate purposes.

Hero Motors is engaged in designing, developing, manufacturing and supplying engineered powertrain solutions to automotive original equipment manufacturers (OEMs) across the US, Europe, India and the ASEAN region. It provides integrated powertrain solutions covering design, prototyping, validation, development and delivery of system-level and component-level solutions for electric and non-electric powertrains.

The company counts BMW, Ducati, Enviolo, Formula Motorsport, Hummingbird EV and HWA among its global customers, besides leading electric bicycle manufacturers and other mobility applications.

Hero Motors reported a 9% increase in revenue to ₹1,216.74 crore in FY26 from ₹1,111.23 crore in FY25. Profit after tax rose 26% to ₹41.17 crore from ₹32.80 crore during the same period.

On the operating front, EBITDA increased to ₹147.78 crore in FY26 from ₹114 crore a year earlier. The company’s net worth rose to ₹482.45 crore in FY26 from ₹423.95 crore in the previous financial year.