Hero Motors IPO Day 3: Total hits 5x; NII bHNI leads at 10.23x
- Hero Motors IPO subscription reached 5x on Day 3, recovering from an intra-day low of 2.69x.
- NII (bHNI) led demand with 10.23x, up 23.7% intra-day from 8.27x.
- Retail subscriptions stood at 6.97x, while QIB participation remained muted at 0.08x.
- The issue price band is ₹79.00000 - ₹84.00000 with a minimum bid quantity of 178 units.
*this image is generated using AI for illustrative purposes only.
Hero Motors IPO subscription recovered sharply to 5x on Day 3, rebounding from an intra-day low of 2.69x. The issue saw a surge in NII (bHNI) demand to 10.23x and Retail interest to 6.97x, although QIB participation remained muted at 0.08x as the subscription window closes.
Subscription Status
The IPO witnessed significant volatility on its final day of subscription. After dipping to 2.69x by 12:15 IST, the total subscription ticked up to 5.00x by 13:15 IST. This marks a recovery from the Day 2 close of 3.33x, driven by renewed interest from non-institutional investors.
| 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 | 0.08x | 10.23x | 5.31x | 6.97x | 5.00x |
Category-wise Breakdown
Non-Institutional Buyers (bHNI) emerged as the strongest category, with subscriptions jumping 23.7% intra-day from 8.27x to 10.23x. Retail investor demand also picked up pace, rising 15.4% from 6.04x to 6.97x. Qualified Institutional Buyers (QIB) saw a marginal increase of 14.3% to 0.08x, while Employee category subscriptions remained at 0x.
Intra-day Timeline
On Day 3 (18-09-2026), the subscription figures recorded at specific intervals were:
| Time (IST) | QIB | NII (bHNI) | Retail | Total |
|---|---|---|---|---|
| 11:15 | 0.07x | 8.27x | 6.04x | 4.13x |
| 12:15 | 0.06x | 6.17x | 3.55x | 2.69x |
| 13:15 | 0.08x | 10.23x | 6.97x | 5.00x |
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.
How might the significantly muted QIB participation (0.08x) impact the stock's listing price and initial volatility compared to retail-driven demand?
Given that 72.89% of revenue comes from the top 10 customers, what are the implications for Hero Motors' pricing power and margin stability post-IPO?
With a heavy reliance on European markets (33.59% of revenue), how exposed is Hero Motors to potential currency fluctuations or regulatory changes in the EU?
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