Hero Motors IPO Day 2: Subscribed 3.33x; NII bHNI leads at 6.37x; Retail up 58.3%
- Hero Motors IPO subscribed 3.33x on Day 2
- NII (bHNI) leads with 6.37x subscription
- Retail investors show strong interest at 4.97x
- QIB participation remains low at 0.06x
- Issue closes on 18-09-2026
*this image is generated using AI for illustrative purposes only.
Hero Motors IPO subscription raced ahead on Day 3, closing at 6.64x. The issue saw a dramatic late-session surge, with Qualified Institutional Buyers (QIB) jumping 2028% to 1.49x and Non-Institutional Buyers (bHNI) leading demand at 13.35x.
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
Subscription figures picked up pace throughout Day 2 (17-09-2026). NII (bHNI) jumped +89.0% intraday (from 3.37x to 6.37x), while Retail increased by +58.3% (from 3.14x to 4.97x). The total subscription rose by 69.0% during the trading window.
| Time (IST) | QIB | NII (bHNI) | Retail | Total |
|---|---|---|---|---|
| 11:15 | 0.01x | 3.37x | 3.14x | 1.97x |
| 12:15 | 0.01x | 4.02x | 3.62x | 2.29x |
| 13:15 | 0.01x | 4.49x | 3.96x | 2.53x |
| 14:15 | 0.06x | 4.87x | 4.22x | 2.72x |
| 15:15 | 0.06x | 5.28x | 4.49x | 2.92x |
| 16:15 | 0.06x | 5.70x | 4.73x | 3.10x |
| 17:15 | 0.06x | 6.37x | 4.97x | 3.33x |
Offer Details
- 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. 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 | FY 2026 (₹ crores) | FY 2025 (₹ crores) | FY 2024 (₹ crores) |
|---|---|---|---|
| Revenue from operations | 1188.35 | 1089.59 | 1064.39 |
| 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 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: 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 ₹987.69 million long-term and ₹3,020.20 million short-term debt.
Will the significant disparity between high retail/NII demand and negligible QIB participation lead to a volatile listing price or indicate a lack of institutional confidence in Hero Motors' long-term growth?
How might the company's heavy reliance on its top customer (35.57% of revenue) impact its valuation stability if that client reduces orders or shifts supply chains?
Given the substantial short-term debt burden relative to equity, how will the proceeds from this IPO specifically alter Hero Motors' debt-to-equity ratio and interest coverage ratios in the coming fiscal year?
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