Hero Motors IPO: How is it different from Hero MotoCorp, Hero FinCorp and Hero Electric?

For generations of Indian consumers, the word “Hero” has been almost synonymous with two-wheelers. But behind the familiar name is a business legacy spanning different companies and branches of the Munjal family. As Hero Motors heads to the stock market with its ₹1,000-crore IPO at a valuation of about ₹3,815 crore, investors may wonder: which “Hero” are they actually buying?

The answer lies in understanding the Munjal family’s business structure. Four Munjal patriarchs - Brijmohan Lall, Satyanand, Om Prakash and Dayanand - once co-owned a group of more than 20 companies. In 2010, the family formalised a settlement that divided businesses and certain rights among different branches.

Under the arrangement, the flagship Hero Honda, now Hero MotoCorp, went exclusively to the Brijmohan Lall Munjal branch. Hero Cycles and its component business, Hero Motors, went to the Om Prakash Munjal branch, while the Hero Electric business was formalised under the Dayanand Munjal branch, led by Vijay and Naveen Munjal.

While they share a common family lineage, these are separate businesses and should not be viewed as interchangeable investments.

Four Hero companies, four different businesses

The best way to distinguish the four companies is by what they actually do. Hero MotoCorp is the group’s flagship two-wheeler maker, manufacturing motorcycles, internal-combustion-engine scooters and electric vehicles under the Vida brand. Its market capitalisation is over ₹1 lakh crore.

Hero FinCorp, meanwhile, is a non-banking financial company offering consumer finance and auto loans, while Hero Electric focuses on electric two-wheelers. Hero FinCorp, the financial services arm of the Hero Group, has also received Sebi approval for its ₹3,668 crore IPO after filing its Draft Red Herring Prospectus (DRHP) with Sebi in July 2024.

Hero Motors, which is going public, is an auto-component and automotive technology business. It develops and manufactures powertrain systems, gears and e-bike drivetrains for global automotive and mobility companies. Unlike Hero MotoCorp, it does not sell motorcycles or scooters to consumers.

So, what is Hero Motors?

Hero Motors is the component and mobility business associated with Pankaj M. Munjal. Its business model is fundamentally different from that of Hero MotoCorp: instead of selling vehicles directly to consumers, it operates largely in the B2B market, supplying engineered powertrain solutions to automotive original equipment manufacturers (OEMs).

Incorporated in April 1998, the company serves customers across the US, Europe, India and the ASEAN region. Its portfolio covers electric and non-electric powertrain solutions for two-wheelers, performance vehicles, e-bikes, off-road vehicles, electric and hybrid cars, heavy-duty vehicles and eVTOL applications. Its customer base includes global names such as BMW and Ducati, as well as international e-bike manufacturers.

The Hero Motors IPO is not a bet on Hero MotoCorp’s two-wheeler franchise or on consumer-facing brands such as Splendor and Xtreme. It is a bet on an automotive technology and components business with a global customer base.

Hero Motors is raising ₹1,000 crore through the IPO, comprising a ₹600-crore fresh issue and a ₹400-crore offer for sale. The fresh issue proceeds are proposed to be used for debt repayment, capacity expansion and other corporate purposes.

The IPO will open for subscription on September 16 and close on September 18. The shares are proposed to be listed on the NSE and BSE.

The price band has been fixed at ₹79–84 per share, with a lot size of 178 shares. At the upper end of the price band, a retail investor would need ₹14,952 to apply for one lot.

Hero Motors’ financial performance has improved in recent years. Its total income rose 9% to ₹1,216.74 crore in FY26 from ₹1,111.23 crore in FY25. Profit after tax increased 26% to ₹41.17 crore from ₹32.80 crore during the same period.

EBITDA rose to ₹147.78 crore in FY26 from ₹114 crore a year earlier, while net worth increased to ₹482.45 crore from ₹423.95 crore.

As of March 31, 2026, the company had total borrowings of ₹400.79 crore, compared with ₹407.62 crore a year earlier. Of the fresh issue proceeds, ₹190 crore is proposed to be used towards repayment, prepayment or redemption of certain outstanding borrowings.

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