99
/
3
Min Read
Automotive technology company Hero Motors Limited has raised around ₹299.99 crore from anchor investors ahead of its initial public offering (IPO). The company allotted 3,57,14,284 equity shares at ₹84 per share to anchor investors on September 16, 2026. The price is at the upper end of the company IPO price band of 79-84 per share.
Around 82% of the anchor allocation, or 2,91,64,441 shares, was allotted to seven domestic mutual funds through 16 schemes. The anchor investors included 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 were made to ICICI Prudential Smallcap Fund, Kotak MNC Fund and JM Flexi Cap Fund.
Hero Motors’ 1,000 crore IPO opened for public subscription on September 16 and will close on September 18, 2026. The issue comprises a fresh issue of ₹600 crore and an offer-for-sale (OFS) of ₹400 crore by promoters O P Munjal Holdings and Hero Cycles. Investors can bid for a minimum of 178 equity shares and in multiples of 178 shares thereafter.
Of the proceeds from the fresh issue, around 190 crore will be used for repayment or prepayment of outstanding borrowings. Another ₹200 crore will be utilised for capacity expansion at the company’s facility in Gautam Buddha Nagar, Uttar Pradesh, potential acquisitions, and other strategic and general corporate purposes.
The company had previously filed draft papers for its IPO twice. In August 2024, Hero Motors filed documents for a ₹900 crore IPO, comprising a ₹500 crore fresh issue and a ₹400 crore OFS, but withdrew the papers in October 2024. It subsequently refiled in July 2025 for a ₹1,200 crore IPO, with an ₹800 crore fresh issue and a ₹400 crore OFS. In the current issue, the fresh issue component has been reduced to ₹600 crore, while the OFS remains unchanged at ₹400 crore. At the upper end of the price band, the company is valued at around ₹3,815 crore.
Hero Motors is an integrated powertrain systems provider offering design, prototyping, validation and development services for both electric and non-electric powertrains. Its products are used across 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.
The company customers include BMW, Ducati Motor Holding, Enviolo International, Formula Motorsport, Hummingbird EV and HWA AG, along with global e-bike manufacturers and aerospace mobility companies. ICICI Securities, DAM Capital Advisors and JM Financial are the book-running lead managers for the IPO, while KFin Technologies is the registrar. The company’s shares are proposed to be listed on the NSE and BSE.
