Hero Motors Limited has raised ₹299.99 crore from anchor investors ahead of a ₹1,000 crore initial public offering that opened for public subscription on September 16, 2026, and closes on September 18, 2026.

The company informed the stock exchanges it allotted 3,57,14,284 equity shares at ₹84 per share to anchor investors — the top of the ₹79–₹84 price band. Domestic mutual funds took the bulk of the allocation: seven fund houses drew 2,91,64,441 shares through 16 schemes. Other anchor participants include ICICI Prudential Life Insurance, 3P India Equity Fund 1M, Edelweiss Life Insurance, Societe Generale – ODI and ASAS Global Fund Incorporated VCC Sub Fund.

A note on identity: Hero Motors is a separate corporate entity from Hero MotoCorp. The two companies belong to different branches of the Munjal family. Hero MotoCorp builds motorcycles and scooters and trades on the NSE and BSE; Hero Motors operates in automotive components and powertrain technology, including electric mobility applications.

The Offer Structure

The IPO comprises a fresh issue of up to ₹600 crore and an offer for sale of up to ₹400 crore by promoters O P Munjal Holdings and Hero Cycles Limited. Shares carry a face value of ₹10. Bidders must apply for a minimum of 178 shares, in multiples of 178 — a single lot costs ₹14,952 at the upper price band. The equity shares are proposed for listing on the BSE and NSE.

The offer follows the book-building process under SEBI ICDR Regulations. Qualified institutional buyers can receive up to 50% of the net offer; non-institutional bidders get no less than 15%, and retail individual bidders no less than 35%. ICICI Securities, DAM Capital Advisors and JM Financial are book-running lead managers, with KFin Technologies as registrar.

Where the Fresh Money Goes

The company has earmarked ₹190 crore of the fresh issue for repayment, prepayment or redemption of certain outstanding borrowings. Another ₹200 crore is planned for capital expenditure — specifically, equipment purchases for capacity expansion at the company's facility in Gautam Buddha Nagar, Uttar Pradesh. The balance of the fresh proceeds will fund unidentified acquisitions, other strategic initiatives and general corporate purposes. The ₹400 crore OFS component goes entirely to the selling promoters; none of it reaches the company.

Customer Base and Product Scope

Per the company and the CRISIL report cited in its IPO materials, Hero Motors designs, develops, manufactures and supplies powertrain systems for automotive OEMs in the US, Europe, India and the ASEAN region. Its work spans designing, prototyping, validation, development and manufacturing of system-level and component-level powertrain solutions for both electric and non-electric applications.

Electric powertrain applications cover two-wheelers, e-bikes, electric and hybrid cars, off-road vehicles and other mobility uses. The company also serves performance automotive, heavy-duty vehicle and eVTOL segments.

Its named customers include BMW AG, Ducati Motor Holding S.P.A., Enviolo International Inc., Formula Motorsport Ltd., Hummingbird EV Inc. and HWA AG, alongside e-bike manufacturers and other mobility companies. As with any pre-listing disclosure, these customer claims come from the company's own IPO materials and await verification against reported production and supply data once the company files as a listed entity.

The company has previously raised growth capital from GEF Capital Partners.

What to Watch

Subscription levels through the September 18 close will signal institutional appetite for mid-cap component suppliers with EV exposure. The listing date on the BSE and NSE follows thereafter. Longer term, track the ₹200 crore equipment rollout at Gautam Buddha Nagar — the capacity milestone that this offering is, in part, financing.