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Hero Motors has reduced its proposed IPO size to INR 1,000 crore from the previously planned INR 1,200 crore. The fresh issue component has been cut to INR 600 crore from INR 800 crore, while the offer-for-sale (OFS) remains unchanged at INR 400 crore.
Under the revised OFS structure, OP Munjal Holdings will offer shares worth INR 395 crore and Hero Cycles will offer shares worth INR 5 crore. Proceeds from the OFS will go to the selling shareholders rather than the company.
From the reduced fresh issue, Hero Motors plans to use INR 190 crore for debt repayment and INR 200 crore for equipment purchases linked to capacity expansion at its Gautam Buddha Nagar facility. The remaining amount is intended for potential acquisitions and general corporate purposes.
Hero Motors, the automotive flagship of the Hero Group, initially filed for a INR 900 crore IPO in August 2024, before refiling its DRHP in July 2025 with an expanded issue size of INR 1,200 crore. The company received SEBI approval for that structure in September 2025. It designs and manufactures electric and non-electric powertrain systems for OEMs including BMW, Ducati and Harley-Davidson and operates six manufacturing units across India, the UK and Thailand. ICICI Securities, DAM Capital Advisors and JM Financial are the book-running lead managers, with KFin Technologies as registrar.
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