Hero Motors has received approval from the Securities and Exchange Board of India (SEBI) to proceed with initial public offering (IPO), as per a filing with the markets regulator on Monday, September 15.
Hero Motors IPO details
The auto component manufacturer aims to raise ₹1,200 crore through a mix of fresh equity issuance and an offer for sale (OFS).
Of the total, ₹800 crore will come from the fresh issue, which will be allocated towards repaying ₹285 crore of debt, investing ₹237 crore in new equipment at its Gautam Buddha Nagar plant, funding possible acquisitions, and meeting general corporate requirements. The ₹400-crore OFS will include ₹390 crore worth of shares offloaded by OP Munjal Holdings, and ₹5 crore each by Bhagyoday Investments and Hero Cycles.
The IPO, priced at a face value of ₹10 per equity share, will see 50% of the offering reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors, and 35% for retail individual investors. Hero Motors may also opt for a pre-IPO placement of up to ₹160 crore, which would reduce the size of the fresh issue accordingly.
ICICI Securities, DAM Capital Advisors, and JM Financial are acting as the book-running lead managers for the issue, with KFin Technologies serving as the registrar.
Led by Pankaj Munjal – cousin of Hero MotoCorp Chairman Pawan Munjal – Hero Motors had initially filed for a ₹900-crore IPO in August 2024. The company later re-submitted its Draft Red Herring Prospectus (DRHP) in July 2025, increasing the issue size to ₹1,200 crore.
The company produces engine and transmission parts for two-wheelers and serves leading global brands such as BMW, Ducati, and Harley-Davidson.