Hero Motors lists at ₹82 vs issue price of ₹84 per share
- Hero Motors shares listed at ₹82, below the issue price of ₹84
- IPO closed with an overall subscription of 6.64x on Day 3
- Retail investors subscribed 8.20x, while HNIs led demand at 13.35x
- Company reported FY26 revenue of ₹1,188.35 crore and profit of ₹41.17 crore
*this image is generated using AI for illustrative purposes only.
Hero Motors shares listed on the stock exchanges at ₹82, falling short of the upper price band of ₹84. The listing represents a discount of approximately 2.4% to the issue price, despite the IPO closing with a healthy overall subscription multiple of 6.64x.
Listing Performance
The company's equity debuted at ₹82 per share. This is lower than the fixed issue price of ₹84, indicating immediate selling pressure or cautious investor sentiment upon listing. The listing price sits within the original price band range of ₹79 to ₹84.
Subscription Status
The IPO momentum accelerated sharply in the final hours of trading. After dipping to 2.69x by midday, the total subscription ticked up consistently, crossing the 5x threshold by 13:15 IST and peaking at 7.62x by 14:15 IST before settling at 6.64x. This marks a significant improvement from the Day 2 close of 3.33x.
| Day | Date | QIB | NII (bHNI) | NII (sHNI) | Retail | Total |
|---|---|---|---|---|---|---|
| Day 1 | 16/09/2026 | 0.01x | 2.27x | 0.69x | 2.20x | 1.36x |
| Day 2 | 17/09/2026 | 0.06x | 6.37x | 2.56x | 4.97x | 3.33x |
| Day 3 | 18/09/2026 | 1.49x | 13.35x | 8.11x | 8.20x | 6.64x |
Category-wise Breakdown
Non-Institutional Buyers (bHNI) continued to dominate interest, rising 61.4% intra-day from 8.27x to 13.35x. The standout move came from QIBs, which jumped from 0.07x to 1.49x (+2028.6%). Retail investor demand also picked up pace, increasing 35.8% from 6.04x to 8.20x.
Intra-day Timeline
| Time (IST) | QIB | NII (bHNI) | Retail | Total |
|---|---|---|---|---|
| 11:15 | 0.00x | 0.76x | 0.85x | 0.50x |
| 12:15 | 0.00x | 1.10x | 1.22x | 0.72x |
| 13:15 | 0.00x | 1.36x | 1.48x | 0.88x |
| 14:15 | 0.01x | 1.57x | 1.68x | 1.01x |
| 15:15 | 0.01x | 1.78x | 1.88x | 1.13x |
| 16:15 | 0.01x | 1.97x | 2.07x | 1.25x |
| 17:15 | 0.01x | 2.27x | 2.20x | 1.36x |
Offer Details
- Price band: ₹79.00 - ₹84.00
- Issue size: ₹1,495.2 crore - ₹5,000.0 crore
- Min bid qty: 178 shares
- Open: September 16, 2026
- Close: September 18, 2026
About the Company
Hero Motors is one of India's leading automotive technology companies engaged in designing, developing, manufacturing and supplying highly engineered powertrain solutions. It serves automotive original equipment manufacturers in the United States, Europe, India and the ASEAN region. The company operates through Powertrain Solutions and Alloys and Metallics business segments.
Financial Highlights
Consolidated financial data for Hero Motors:
| Metric | FY26 (₹ crore) | FY25 (₹ crore) | FY24 (₹ crore) |
|---|---|---|---|
| Revenue from operations | 1,188.35 | 1,089.59 | 1,064.39 |
| Total profit | 41.17 | 32.80 | 17.04 |
| Profit before tax | 61.00 | 39.08 | 24.31 |
Objects of the Issue
- Repayment/prepayment/redemption of certain outstanding borrowings: ₹190.00 crore
- Capital expenditure for expansion in capacity of Gautam Buddha Nagar facility: ₹200.00 crore
- Funding inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes
Risk Factors
- Geographic Revenue Concentration Risk: 33.59% of revenue generated from Europe in Fiscal 2026.
- Customer Concentration Risk: 72.89% of revenue derived from top 10 customers in Fiscal 2026.
- Industry Dependence: Heavy reliance on e-bikes (12.92% of revenue) and two wheelers (41.00% of revenue).
- Supplier Dependency: Raw materials represent 54.99% of revenue in Fiscal 2026.
- Capital Intensive Business: Outstanding debt includes ₹98.77 crore long-term and ₹302.02 crore short-term debt.
How might the significant geographic revenue concentration in Europe expose Hero Motors to potential regulatory changes or economic slowdowns in the EU automotive sector?
What strategic acquisitions is Hero Motors likely to pursue with the ₹200 crore allocated for inorganic growth, and how will this impact its powertrain technology portfolio?
Given the high customer concentration risk, what steps is the company taking to diversify its client base beyond the top 10 customers to mitigate revenue volatility?
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