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HomeMarket NewsHero Motors gets SEBI nod for ₹1,200-crore IPO
Hero Motors plans to raise ₹1,200 crore through a combination of fresh issue and OFS. The IPO, with a face value of ₹10 per equity share, will allocate 50% of the issue to qualified institutional buyers (QIBs), 15% to non-institutional investors, and 35% to retail individual investors. Hero Motors may also consider a pre-IPO placement of up to ₹160 crore. If undertaken, the fresh issue size will be reduced accordingly.
By Pihu Yadav September 15, 2025, 8:07:52 PM IST (Published)
Hero Motors has received approval from the Securities and Exchange Board of India (SEBI) to launch its maiden initial public offering (IPO), according to an update with the markets regulator on Monday, September 15. The auto components maker plans to raise ₹1,200 crore through a combination of fresh issue and offer for sale (OFS).
The fresh issue of ₹800 crore will be used for multiple purposes, including the repayment of ₹285-crore debt, ₹237 crore for capital expenditure on equipment purchases at its Gautam Buddha Nagar facility, funding potential acquisitions, and general corporate needs. The ₹400-crore OFS will comprise ₹390-crore worth of shares held by OP Munjal Holdings, and ₹5 crore each by Bhagyoday Investments and Hero Cycles.
IPO details and structure
The IPO, with a face value of ₹10 per equity share, will allocate 50% of the issue to qualified institutional buyers (QIBs), 15% to non-institutional investors, and 35% to retail individual investors. Hero Motors may also consider a pre-IPO placement of up to ₹160 crore. If undertaken, the fresh issue size will be reduced accordingly.
ICICI Securities, DAM Capital Advisors, and JM Financial are the book-running lead managers to the IPO, while KFin Technologies is the registrar.
Background and expansion plans
Hero Motors, led by Pankaj Munjal — cousin of Hero MotoCorp Chairman Pawan Munjal — had initially filed papers in August 2024 for a ₹900-crore IPO. The company later refiled its Draft Red Herring Prospectus (DRHP) in July 2025 with an increased issue size of ₹1,200 crore.
As of December 31, 2024, Hero Motors operated six manufacturing facilities across India, the UK, and Thailand, strategically located to ensure proximity to customers and cost competitiveness. The company manufactures engine and transmission components for two-wheelers, and counts global brands like BMW, Ducati, and Harley-Davidson among its clients.
Currently, promoters hold a 91.65% stake in Hero Motors.
Also Read: Upcoming IPOs: Canara Robeco, Hero Motors and five others get SEBI go-ahead
(Edited by : Shoma Bhattacharjee)
