Hero Motors IPO fully subscribed on Day 1; retail portion booked 2x

Hero Motors’ ₹1,000 crore initial public offering (IPO) was fully subscribed on the first day of bidding on Wednesday, driven by strong demand from retail investors. The issue received bids for 10.89 crore equity shares against 8.86 crore shares on offer, translating into an overall subscription of 1.23 times, according to stock exchange data.

The retail portion was subscribed 2.03 times, with investors bidding for 9 crore shares against 4.43 crore shares reserved for the category, by 3:45 pm.

The non-institutional investor (NII) portion was subscribed 0.98 times, while the qualified institutional buyer (QIB) portion stood at 0.01 times.

As per the IPO papers filed with Sebi, 50% of the offer has been reserved for QIBs, 35% for retail investors and the remaining 15% for NIIs.

The issue will remain open for subscription until September 18, while the tentative date for listing on the BSE and NSE is September 23.

IPO GMP implies 22.6% listing gain

The grey market premium (GMP) of Hero Motors IPO stood at ₹19 on Wednesday, indicating an estimated listing price of ₹103 and a potential listing gain of 22.62%, according to data available on InvestorGain.

The IPO of Hero Motors, an automotive technology company, 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.

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 also plans to use the proceeds to fund inorganic growth through unidentified acquisitions and other strategic initiatives, along with general corporate purposes.

Ahead of the IPO opening, the company had raised ₹300 crore from anchor investors. 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.

Hero Motors designs, develops, manufactures and supplies engineered powertrain solutions to automotive original equipment manufacturers (OEMs) across the US, Europe, India and the ASEAN region. Its offerings cover 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.