Hero Motors, the automotive technology and powertrain manufacturing arm of the Hero Group, opened its initial public offering on September 16, 2026, seeking to raise Rs 1,000 crore at a price band of Rs 79 to Rs 84 a share. The issue, which closes on September 18, comprises a Rs 600 crore fresh issue of equity shares alongside a Rs 400 crore offer for sale by the company's promoters, according to the terms of the offering.
The company said proceeds from the fresh issue will be used primarily for debt repayment and capital expenditure, among other corporate purposes, as it looks to strengthen its balance sheet ahead of what management has signalled as an accelerated capacity-expansion phase. Hero Motors is led by Pankaj Munjal, part of the Munjal family that also controls Hero MotoCorp, India's largest two-wheeler manufacturer by volume, though Hero Motors operates as a distinct entity focused on engineered powertrain solutions for automotive original equipment manufacturers.
The company's product portfolio spans both electric and non-electric powertrain systems across a wide range of vehicle categories, including two-wheelers, e-bikes, off-road vehicles, and electric and hybrid passenger cars, alongside heavy-duty vehicle applications. Hero Motors operates across two primary business segments — powertrain solutions, and alloys and metallics — with manufacturing facilities spread across India, the United Kingdom and Thailand, and a client roster that has previously included global automotive marques such as BMW and Ducati.
Ahead of the public offering, Hero Motors raised Rs 299.99 crore from anchor investors, allocating shares at the upper end of its price band, a step that gave the company an early indication of institutional investor demand before the issue opened to broader retail and non-institutional subscription. The IPO's book-running lead managers are ICICI Securities, DAM Capital Advisors and JM Financial, with Kfin Technologies serving as registrar for the offering.
The listing arrives amid a broadly active period for Indian primary markets, with a steady pipeline of IPOs from both technology-enabled companies and traditional manufacturing businesses seeking to tap public capital even as broader equity indices have faced pressure in recent weeks from rising crude oil prices and elevated global bond yields. Auto-component manufacturers in particular have drawn investor interest as India's automotive sector navigates a structural shift toward electrification, with component suppliers that have diversified across both electric and combustion powertrain technologies generally viewed as better positioned to manage that transition than pure-play legacy suppliers.
For the Munjal family and the broader Hero Group, the IPO represents a further step in unlocking value from what has historically been one of India's most diversified automotive conglomerates, spanning two-wheeler manufacturing, cycles, financial services and now, via this listing, a dedicated public listing for its powertrain technology business. Market participants will be watching subscription levels across retail, non-institutional and qualified institutional buyer categories over the issue's three-day window as an early signal of investor appetite for auto-component listings in the current market environment.
