Subscription & GMP
Subscription is live from NSE + BSE bid data. GMP is an unofficial market indicator.
Snapshot & Timeline
Verified against RHP, cross-checked on NSE & BSE.
| Issue Structure | |
|---|---|
| Type | Mainboard · Book Built |
| Face Value | ₹10 |
| Fresh Issue | ₹600 Cr |
| Offer for Sale | ₹400 Cr |
| Market Cap | ≈ ₹3,815 Cr |
| Reservation & Parties | |
|---|---|
| QIB (incl. anchor) | 50% (incl. anchor) |
| NII / HNI | 15% |
| Retail | 35% |
| Lead Managers | ICICI Securities, DAM Capital Advisors, JM Financial |
| Registrar | KFin Technologies |
FY24–FY26 Trend (₹ Cr)
Restated consolidated figures from the RHP.
| Metric | FY24 | FY25 | FY26 | YoY |
|---|---|---|---|---|
| Total Income | 1,083.42 | 1,111.23 | 1,216.74 | +9% |
| PAT | 17.04 | 32.80 | 41.17 | +26% |
| PAT Margin | 1.6% | 3.0% | 3.4% | — |
Is the price fair?
From the RHP "Basis for Issue Price". Price (P/E) beside quality (ROE).
| Company | P/E | ROE | Net Margin |
|---|---|---|---|
| Hero Motors | ≈93x | 8.53% | 3.4% |
| Sona BLW Precision | 76.5x | 10.7% | — |
| Uno Minda | 59.8x | 19.5% | — |
| Endurance Technologies | 40.8x | 15.2% | — |
| Varroc Engineering | 56.1x | 18.7% | — |
Who runs it & where the money goes
| Promoters | |
|---|---|
| Promoters | Pankaj Munjal, Charu Munjal, Abhishek Munjal, O P Munjal Holdings |
| Pre-issue | — |
| Post-issue | — |
| Objects of Issue | |
|---|---|
| Repayment / pre-payment of certain outstanding borrowings | — |
| Capex — equipment for capacity expansion at the Gautam Buddha Nagar, UP facility | — |
| Funding inorganic growth (unidentified acquisitions) & general corporate purposes | Balance |
Strengths & Risks
The part most sites skip — both sides, from the RHP.
- Quality, R&D-led global supplier — marquee OEM customers (BMW, Ducati, enviolo) and system-level powertrain capability.
- Genuine EV/e-bike optionality — first-mover in exporting CVT hubs and integrated electric e-bike powertrains from India.
- Strong FY26 growth — PAT ₹17 → ₹41 Cr (+26%), EBITDA ₹86 → ₹148 Cr, on income up to ₹1,217 Cr.
- Strong anchor book — ₹300 Cr from 24 investors, ~82% domestic mutual funds, at the ₹84 top price.
- Reputable Munjal/Hero-group promoter with experienced management.
- Very expensive — ~93x post-issue earnings and ~7x book for only an ~8.5% ROE; the case leans on future EV growth, not today's profit.
- Thin margins — PAT margin ~3.4%; auto-component supply is competitive and cyclical, exposed to OEM demand and input costs.
- Leverage & OFS — debt/equity ~0.82; ₹400 Cr (40%) of the issue is an offer for sale rather than money for the company.
- Day-1 demand firmed to ~1.48× overall (retail 2.38×) but QIB has barely bid (~0.01×) — two bidding days left; grey market only modestly positive (~₹5–10).
- New listing with limited trading history; global-customer and export concentration; confirm final financials in the RHP.
Did the signal hold up? Updates after Sep 23
We close the loop — issue vs listing price, listing-day gain, and whether the call was right.
Hero Motors IPO FAQs
Common questions about the Hero Motors IPO — GMP, price, dates, allotment and more.
What is Hero Motors IPO GMP today?
As of the latest update (Subscription: Final · Sep 18, 04:06 PM IST · GMP: Sep 22, 11:15 AM IST), the grey market premium (GMP) for Hero Motors IPO is around ≈ -₹2 (flat · unofficial), implying an estimated listing price of about ≈ ₹82. GMP is unofficial & indicative
What is Hero Motors IPO price band?
The price band is ₹79 – ₹84 per share (face value ₹10).
What is Hero Motors IPO lot size?
The lot size is 178 · min ₹14,952 per application.
When is Hero Motors IPO allotment?
The tentative basis-of-allotment date is Sep 21.
When will Hero Motors IPO be listed?
The tentative listing date is Sep 23, 2026 on BSE · NSE.
What is the expected listing price of Hero Motors IPO?
Based on the current grey market premium of ≈ -₹2 (flat · unofficial), the estimated listing price is around ≈ ₹82 — this is unofficial and not a guarantee of the actual listing price.
Should I apply for Hero Motors IPO?
Our view: Neutral · May Apply
In simple terms, Hero Motors makes the powertrains — gears, transmissions, electric drive units and e-bike systems — that go into vehicles for global names like BMW and Ducati, and it is an early mover in exporting e-bike powertrains from India. It is a genuinely high-quality, R&D-heavy supplier that grew profit about 26% last year (to ₹41 crore). The catch is the price: at about ₹3,815 crore of market value on only ₹41 crore of profit, the shares are valued near 93 times earnings and about 7 times book — very expensive for a business earning only an ~8.5% return at thin ~3.4% margins. The book closed about 7 times covered overall, but institutions were relatively light (QIB ~1.6×), and the grey market has slipped to roughly flat (about -₹2), pointing to little or no listing pop. On balance the quality and optionality are real but the valuation leaves little margin of safety and the listing signal is muted — a hold-for-quality view rather than a listing-gain trade. (Confirm final financials against the RHP.) This is IPOSignal's research view, not investment advice.
What is Hero Motors IPO subscription status?
As of Final · Sep 18, 04:06 PM IST, the issue was subscribed 7× overall — NII / HNI 10.5×, Retail 8.6×, QIB 1.6×.
Who is the registrar of Hero Motors IPO?
The registrar is KFin Technologies; the lead manager(s): ICICI Securities, DAM Capital Advisors, JM Financial.