Auto parts maker Hero Motors Limited is set to launch its initial public offering (IPO) and has set a price band of Rs 79-Rs 84 per share for its Rs 1,000 crore public issue. The IPO subscription window will open on September 16, 2026. The three-day subscription window will close on September 18, 2026. According to available information, the company’s shares are expected to be listed on the stock exchanges on September 23.
Rs 1,000 crore initial public offering
Hero Motors’ Rs 1,000 crore IPO includes a fresh issue of Rs 600 crore and an offer for sale (OFS) of Rs 400 crore.Ā
Existing shareholders will sell their shares through the OFS. OP Munjal Holdings will sell shares worth approximately Rs 395 crore, while Hero Cycles will sell shares worth approximately Rs 5 crore. This means a significant portion of the IPO proceeds will come from existing investors selling their stakes.
How does the company plan to use the proceeds?
The company will use the proceeds from the fresh issue to strengthen its business. It will use about Rs 190 crore to repay or prepay debt. Additionally, the company will use about Rs 200 crore to purchase equipment to expand capacity at its Gautam Buddha Nagar, Uttar Pradesh plant.Ā
The remaining proceeds will fund potential acquisitions, strategic initiatives, and general corporate needs.
Hero Motors cuts IPO size
Earlier, the company planned to launch an IPO of Rs 1,200 crore. The company had filed its DRHP (Draft Red Herring Prospectus) for an IPO in June 2025. At that time, the company planned to raise Rs 1,200 crore, which included a fresh issue of Rs 800 crore and an OFS of Rs 400 crore. The company later reduced the fresh issue size to Rs 600 crore, bringing down the total IPO size to Rs 1,000 crore, and the OFS structure was changed.
Hero Motors is one of India’s leading automotive technology companies, engaged in designing, developing, manufacturing, and supplying highly engineered powertrain solutions to automotive original equipment manufacturers (OEMs) in the US, Europe, India, and the Association of Southeast Asian Nations (ASEAN) region.
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