Hero Motors Raises ₹299.99 Crore from Anchor Investors Ahead of IPO

Auto component maker Hero Motors Limited has raised ₹299.99 crore from anchor investors ahead of its initial public offering (IPO), which opened for public subscription on September 16, 2026. The IPO will remain open until September 18, 2026.

Hero Motors Limited is a separate corporate entity from Hero MotoCorp, with the two companies belonging to different branches of the Munjal family. While Hero MotoCorp manufactures motorcycles and scooters and is listed on the NSE and BSE, Hero Motors operates in automotive components and powertrain technology, including applications for electric mobility.

The company informed the stock exchanges that it has allotted 3,57,14,284 equity shares at ₹84 per share to anchor investors. Anchor investors are institutional investors who are allocated shares shortly before an IPO opens for public subscription. Their participation forms part of the IPO process.

Of the total shares allocated to anchor investors, 2,91,64,441 shares were allotted to seven domestic mutual funds through 16 schemes. Other anchor investors include ICICI Prudential Life Insurance Company Limited, 3P India Equity Fund 1M, Edelweiss Life Insurance Company Limited, Societe Generale – ODI and ASAS Global Fund Incorporated VCC Sub Fund, among others.

The Hero Motors IPO has a total size of ₹1,000 crore, comprising a fresh issue of equity shares worth 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 Limited.

The company has fixed the IPO price band at ₹79 to ₹84 per equity share, with a face value of ₹10 per share. Investors can bid for a minimum of 178 shares, and in multiples of 178 thereafter. At the upper end of the price band, one minimum lot would cost ₹14,952. The IPO opened on September 16, 2026, and will close on September 18, 2026. The equity shares are proposed to be listed on the BSE and NSE.

The offer is being made through the book-building process in accordance with the SEBI ICDR Regulations. Not more than 50% of the net offer will be available for allocation to qualified institutional buyers (QIBs), not less than 15% to non-institutional bidders (NIIs), and not less than 35% to retail individual bidders (RIIs).

The company plans to use part of the ₹600 crore raised through the fresh issue for debt repayment and capacity expansion.

• According to the company, ₹190 crore will be used for repayment, prepayment or redemption of certain outstanding borrowings.

• Another ₹200 crore is planned for capital expenditure, including the purchase of equipment required for capacity expansion at Hero Motors’ facility in Gautam Buddha Nagar, Uttar Pradesh.

• The remaining proceeds from the fresh issue are proposed to be used for funding unidentified acquisitions, other strategic initiatives and general corporate purposes.

The ₹400-crore OFS component will involve the sale of shares held by the company’s promoters, O P Munjal Holdings and Hero Cycles Limited.

Hero Motors designs, develops, manufactures and supplies powertrain systems for automotive original equipment manufacturers (OEMs) in the US, Europe, India and the ASEAN region, according to the company and the CRISIL report cited in its IPO materials.

The company provides powertrain solutions for both electric and non-electric applications. Its operations cover designing, prototyping, validation, development and manufacturing of system-level and component-level powertrain solutions.

Its electric powertrain applications include two-wheelers, e-bikes, electric and hybrid cars, off-road vehicles and other mobility applications. The company also operates across performance automotive, heavy-duty vehicles and electric vertical take-off and landing (eVTOL) applications.

Hero Motors’ customers include BMW AG, Ducati Motor Holding S.P.A., Enviolo International Inc., Formula Motorsport Ltd., Hummingbird EV Inc. and HWA AG, along with e-bike manufacturers and other mobility companies.

ICICI Securities Limited, DAM Capital Advisors Limited and JM Financial Limited are the book-running lead managers for the IPO, while KFin Technologies Limited is the registrar.

Also read: Auto component maker Hero Motors raises growth capital from GEF Capital Partners