Hero Motors IPO Day 1: Subscribed 0.72x; Retail leads at 1.22x
- Hero Motors IPO is subscribed 0.72x on Day 1.
- Retail investors lead demand at 1.22x.
- NII (bHNI) surged 44.7% to 1.10x.
- QIB participation remains at 0.00x.
- Issue closes on 2026-09-18.
*this image is generated using AI for illustrative purposes only.
Hero Motors IPO is subscribed 0.72x on Day 1. Retail investors are leading the demand at 1.22x, while Qualified Institutional Buyers (QIBs) remain at 0.00x. The issue remains open for bidding until 2026-09-18.
Subscription Status
The Hero Motors IPO saw accelerating participation on its first day of subscription. The total subscription stands at 0.72x. Retail investors emerged as the strongest category, accounting for 1.22x of the bids. Non-Institutional Investors (NII) showed significant momentum, with small HNI (sHNI) subscribers contributing 1.10x and big HNI (bHNI) subscribers adding 0.23x. There was no participation from QIBs or employee categories on Day 1.
Subscription Progression
| Day | Date | QIB | NII (bHNI) | NII (sHNI) | Retail | Total |
|---|---|---|---|---|---|---|
| Day 1 | 16-09-2026 | 0.00x | 1.10x | 0.23x | 1.22x | 0.72x |
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 |
Offer Details
- Company: Hero Motors
- Price band: ₹79.00000 - ₹84.00000
- Issue size: 14952 - 500000
- Min bid qty: 178
- Open: 2026-09-16 10:00:00
- Close: 2026-09-18 17:00:00
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 catering to automotive original equipment manufacturers in United States, Europe, India and the ASEAN region. The company is a fully integrated powertrain systems provider offering comprehensive solutions including services for designing, prototyping, validating, developing, and delivering system-level and component-level powertrain solutions for both electric as well as non-electric powertrains.
The company's operations are organized into Powertrain Solutions and Alloys and Metallics business segments, serving applications in two-wheelers, performance automotive, e-bikes, off-road vehicles, electric and hybrid cars, heavy duty vehicles, and electric vertical take-off and landing categories.
Financial Highlights
Hero Motors reported consolidated revenue from operations of ₹1188.35 crores in Fiscal 2026, up from ₹1089.59 crores in Fiscal 2025. The total profit stood at ₹41.17 crores in FY2026, compared to ₹32.80 crores in FY2025.
| Metric | FY 2026 | FY 2025 | FY 2024 |
|---|---|---|---|
| Revenue from Operations (₹ crores) | 1188.35 | 1089.59 | 1064.39 |
| Total Profit (₹ crores) | 41.17 | 32.80 | 17.04 |
| Total Assets (₹ crores) | 1371.83 | 1164.62 | 1059.86 |
Objects of the Issue
- Repayment/prepayment/redemption of certain outstanding borrowings: ₹190.00 crores
- Capital expenditure for expansion in capacity of Gautam Buddha Nagar facility: ₹200.00 crores
- Funding inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes
Risk Factors
- Geographic Revenue Concentration Risk: The company generates 33.59% of revenue from Europe in Fiscal 2026, exposing it to economic slowdowns, regulatory changes, or geopolitical events in these jurisdictions.
- Customer Concentration Risk: The company derives 72.89% of revenue from its top 10 customers in Fiscal 2026, with the top customer contributing 35.57%.
- Industry Dependence on E-bikes and Two Wheelers: The company's business is heavily dependent on e-bikes (12.92% of revenue) and two wheelers (41.00% of revenue) industries.
- Supplier Dependency and Supply Chain Risk: Raw materials represent 54.99% of revenue in Fiscal 2026, and supplier performance issues could adversely affect manufacturing operations.
Will the absence of QIB participation on Day 1 signal institutional skepticism regarding Hero Motors' valuation or its heavy reliance on top-tier customers?
How might the company's significant geographic revenue concentration in Europe impact its long-term stability amidst potential geopolitical shifts or regulatory changes?
Can Hero Motors sustain its profit growth trajectory given that raw materials constitute nearly 55% of its revenue, exposing it to supply chain volatility?
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