Hero Motors IPO Day 2: Subscribed 2.29x; NII bHNI jumps 19.3%
- Hero Motors IPO subscribed 2.29x on Day 2, up from 1.36x on Day 1.
- Retail demand leads at 3.62x, with a 15.3% intraday jump.
- NII (bHNI) surged 19.3% to 4.02x during the trading window.
- QIB participation remains flat at 0.01x.
- Issue closes on 18-09-2026.
*this image is generated using AI for illustrative purposes only.
Hero Motors IPO is subscribed 2.29 times on Day 2, with retail investors leading the charge at 3.62x. Non-institutional buyers (bHNI) showed strong momentum, jumping 19.3% intraday to 4.02x, while QIB participation remains negligible at 0.01x as the issue nears its final day.
Subscription Status
The issue has accelerated significantly from Day 1 to Day 2. Total subscriptions rose from 1.36x on the first day to 2.29x on the second day. The retail category has been the primary contributor to this increase, climbing from 2.20x to 3.62x. Non-institutional buyers (bHNI) also surged, moving from 2.27x to 4.02x.
| 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 | 0.01x | 4.02x | 1.34x | 3.62x | 2.29x |
Category-wise Breakdown
Retail investors continue to dominate the subscription numbers, accounting for the highest multiple among all categories at 3.62x. Small High Net-worth Individuals (sHNI) within the Non-Institutional Buyers (NII) segment also showed activity, reaching 1.34x. Large HNI investors (bHNI) demonstrated significant momentum, reaching 4.02x. In contrast, QIB participation remains negligible at 0.01x throughout the first two days.
Intra-day Timeline
On Day 2 (17-09-2026), the subscription figures picked up pace after 11:15 AM. NII (bHNI) jumped +19.3% today (from 3.37x to 4.02x), while Retail jumped +15.3% (from 3.14x to 3.62x). The total subscription increased by 16.2% during this 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 |
Offer Details
- Price Band: ₹79.00000 - ₹84.00000
- Issue Size: 14952 - 500000
- Min Bid Qty: 178
- Open Date: 2026-09-16
- Close Date: 2026-09-18
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 two main segments: Powertrain Solutions and Alloys and Metallics. Its products cater to two-wheelers, performance automotive, e-bikes, off-road vehicles, electric and hybrid cars, heavy-duty vehicles, and electric vertical take-off and landing categories. The management team includes Pankaj Munjal (MD) and Abhishek Munjal (CEO).
Financial Highlights
The company reported consolidated revenue from operations of ₹1,188.35 crore for the fiscal year ending 31/03/2026, an increase from ₹1,089.59 crore in FY2025. Profit before tax rose to ₹61.00 crore in FY2026 from ₹39.08 crore in FY2025. Total assets stood at ₹1,371.83 crore at the end of FY2026.
| Metric | FY 2026 (₹ crores) | FY 2025 (₹ crores) | FY 2024 (₹ crores) |
|---|---|---|---|
| Revenue from Operations | 1188.35 | 1089.59 | 1064.39 |
| Profit Before Tax | 61.00 | 39.08 | 24.31 |
| Total Assets | 1371.83 | 1164.62 | 1059.86 |
| Total Equity | 481.01 | 426.01 | 374.82 |
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 comes from Europe in Fiscal 2026, exposing the company to regional economic or geopolitical risks.
- Customer Concentration Risk: The top 10 customers contribute 72.89% of revenue, with the largest customer accounting for 35.57%.
- 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, with reliance on purchase orders rather than definite-term agreements.
- Capital Intensive Business: Outstanding debt includes ₹987.69 million long-term and ₹3,020.20 million short-term debt.
Will the negligible QIB participation on Day 2 signal potential pricing pressure or listing gains volatility for Hero Motors?
How might the heavy reliance on a single customer (35.57% of revenue) impact Hero Motors' valuation stability post-IPO?
Could the significant capital expenditure planned for the Gautam Buddha Nagar facility accelerate revenue growth beyond current projections?
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