Hero Motors Limited, an automotive technology company that designs, develops, manufactures and supplies powertrain solutions to OEMs in the US, Europe, India and the ASEAN region, raised Rs 299.99 crore from anchor investors in Mumbai on September 16, ahead of its initial public offering opening for public subscription the same day.
The company allocated 3,57,14,284 equity shares at Rs 84 per share — the upper end of its price band — to anchor investors. Of this, 2,91,64,441 shares, or about 82 percent of the anchor allocation, went to seven domestic mutual funds through 16 schemes.
Who Invested: Anchor Investors in the Hero Motors IPO
Institutions that participated in the anchor round include 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, allocations went to the ICICI Prudential Smallcap Fund, Kotak Mahindra Trustee Co Ltd A/C Kotak MNC Fund, and JM Financial Mutual Fund-JM Flexi Cap Fund.
ICICI Securities, DAM Capital Advisors and JM Financial are the book-running lead managers for the offer, and KFin Technologies is the registrar. The shares are proposed to be listed on the NSE and BSE.
Hero Motors IPO Price Band, Dates and Lot Size
Hero Motors has fixed a price band of Rs 79 to Rs 84 for the IPO, its maiden public offer, for equity shares of face value Rs 10 each. The issue opens on September 16 and closes on September 18, 2026. Investors can bid for a minimum of 178 equity shares and in multiples of 178 shares thereafter.
IPO Structure: Fresh Issue, OFS and Use of Proceeds
The Rs 1,000 crore IPO comprises a fresh issue of up to Rs 600 crore and an offer-for-sale of up to Rs 400 crore by promoters O P Munjal Holdings and Hero Cycles.
Of the fresh issue proceeds, Rs 190 crore will go toward repayment or prepayment of outstanding borrowings, and Rs 200 crore toward capital expenditure for capacity expansion at the company's Gautam Buddha Nagar, Uttar Pradesh facility, funding of inorganic growth through unidentified acquisitions, and other strategic and general corporate purposes.
Under the book-building process, not more than 50 percent of the net offer is reserved for qualified institutional buyers, not less than 15 percent for non-institutional bidders, and not less than 35 percent for retail individual bidders.
Hero Motors IPO Journey: From Rs 900 Crore to Rs 1,000 Crore
The current Rs 1,000 crore issue size follows two earlier versions of the offer. Hero Motors first filed draft papers with Sebi in August 2024 for a Rs 900 crore IPO, comprising a Rs 500 crore fresh issue and a Rs 400 crore offer-for-sale, before withdrawing those papers in October 2024.
It refiled in July 2025 with an enlarged Rs 1,200 crore issue — a Rs 800 crore fresh issue and a Rs 400 crore offer-for-sale. The issue that opened on September 16, 2026 is smaller than the July 2025 filing, with the fresh issue component reduced to Rs 600 crore while the offer-for-sale component has remained at Rs 400 crore.
At the top end of the price band, the company is valued at about Rs 3,815 crore.
About Hero Motors: Powertrain Business and Key Clients
Hero Motors is a fully integrated powertrain systems provider offering design, prototyping, validation and development services for both electric and non-electric powertrains, according to a CRISIL report cited by the company.
Its products are used in two-wheelers, performance automotive, e-bikes, off-road vehicles, electric and hybrid cars, heavy-duty vehicles, and electric vertical take-off and landing (eVTOL) applications.
Customers include BMW, Ducati Motor Holding, Enviolo International, Formula Motorsport, Hummingbird EV and HWA AG, besides global e-bike manufacturers and aerospace mobility applications.