Business Desk – Hero Motors IPO: Hero Motors' IPO has received a strong response from investors. On the third and last day of bidding, this issue closed with a total subscription of 7.01 times. According to National Stock Exchange data, the company had offered 8.86 crore shares, while investors had bid for many times more shares. However, the picture looks different in the gray market and Hero Motors IPO GMP has reached zero rupees.
Non-institutional investors remained at the forefront in terms of subscription. 1.89 crore shares were reserved for NIIs, against which this portion was subscribed 10.47 times. 4.43 crore shares placed for retail investors received 8.62 times bids. At the same time, relatively less participation was seen from Qualified Institutional Buyers i.e. QIBs. This category received 1.59 times subscription against 2.53 crore reserved shares.
GMP zero rupees, indicating flat listing
As per market signals at 8:30 pm on September 18, 2026, the GMP of Hero Motors IPO in the unlisted market was Rs 0. The issue price of the company is Rs 84 per share. In such a situation, the estimated listing price based on the current GMP also comes to around Rs 84, which means flat listing is being indicated.
However, GMP is indicative of an informal market. This is subject to change till listing, hence it should not be considered as the actual listing price of the share.
The entire IPO is worth Rs 1,000 crore.
Hero Motors' IPO is a total book-built issue of Rs 1,000 crore. This includes 7.14 crore fresh shares worth Rs 600 crore and 4.76 crore shares worth Rs 400 crore through OFS. Before the issue opened, the company had raised Rs 300 crore by issuing 3,57,14,284 shares at Rs 84 per share.
The share allotment is expected to be finalized on September 21, 2026, while the possible listing on NSE and BSE could happen on September 23, 2026. ICICI Securities Limited is the book-running lead manager and KFin Technologies Limited is the registrar.
Where will the money received from IPO be used?
The company will use a major part of the amount raised from the IPO to fully or partially repay its outstanding debt or pre-payment. Apart from this, machinery and equipment will be purchased to increase the capacity of the plant located in Gautam Buddha Nagar, Uttar Pradesh. The remaining amount will be used for strategic acquisitions, inorganic growth and general corporate needs.
There was improvement in earnings and profits also
The company's total income was Rs 1,111.23 crore in FY 2025, which increased by 9% to Rs 1,216.74 crore in FY 2026. During the same period, profit after tax i.e. PAT increased from Rs 32.80 crore to Rs 41.17 crore. There was an increase of about 26%.
What does Hero Motors do?
Hero Motors Limited was established in April 1998. The company designs, develops and manufactures powertrain solutions for OEMs in the US, Europe, India and ASEAN countries. Its business spans across electric and non-electric segments of two-wheelers, e-bikes, passenger and commercial vehicles, off-road vehicles and eVTOL.
The company manufactures CVTs, EV transmissions, electric motors, integrated drive units and gear sets. It is the only manufacturer in India to export CVT hubs and integrated electric powertrain for e-bikes. The business is primarily divided into Powertrain Solutions and Alloys & Metallics. The company supplies to global brands such as BMW, Ducati, Enviolo, Formula Motorsport, Hummingbird EV and HWA. As of March 31, 2026, the company had 1,388 permanent employees and 707 contract labour.
