Hero Motors IPO Opens Today: Company Raises Rs 299.99 Crore From Anchor Investors

Hero Motors has raised nearly Rs 300 crore from anchor investors ahead of its Rs 1,000-crore IPO, which opens for public subscription on September 16.

Hero Motors IPO Opens September 16 After Raising Rs 299.99 Crore From Anchor Investors

Hero Motors has raised Rs 299.99 crore from anchor investors ahead of its Rs 1,000-crore initial public offering (IPO), with the public issue opening for subscription on September 16, 2026. The company has fixed the IPO price band at Rs 79 to Rs 84 per equity share.

The anchor allocation comes ahead of the three-day public issue and provides institutional investors an opportunity to participate before the IPO opens to other investors. Hero Motors is looking to raise capital for debt repayment, capacity expansion and other corporate requirements through the issue.

Hero Motors Raises Rs 299.99 Crore From Anchor Investors

Hero Motors allotted 3,57,14,284 equity shares to anchor investors at Rs 84 per share, which is the upper end of the IPO price band. The allocation includes participation from several institutional investors and investment funds.

Some of the investors participating in the anchor book include ICICI Prudential Life Insurance Company, 3P India Equity Fund 1M, Edelweiss Life Insurance Company, Societe Generale–ODI and ASAS Global Fund Incorporated VCC Sub Fund.

Several mutual fund schemes also participated in the allocation, including ICICI Prudential Smallcap Fund, Kotak MNC Fund and JM Flexi Cap Fund.

Domestic mutual funds accounted for a significant portion of the anchor allocation. They acquired 2,91,64,441 shares through 16 different schemes, highlighting institutional participation ahead of the public offering.

Hero Motors IPO Opens on September 16

The Hero Motors IPO will open for public subscription on September 16 and remain available for bidding until September 18, 2026.

The company has fixed the price band between Rs 79 and Rs 84 per share, with each equity share carrying a face value of Rs 10. Investors can place bids for a minimum of 178 shares and subsequently in multiples of the lot size.

At the upper price band, the IPO is expected to raise around Rs 1,000 crore. The issue consists of a combination of fresh equity shares and an offer-for-sale component.

The fresh issue is expected to raise up to Rs 600 crore, while shares worth up to Rs 400 crore will be offered for sale by promoters O P Munjal Holdings and Hero Cycles.

How Hero Motors Plans to Use IPO Funds

A significant portion of the fresh issue proceeds will be directed towards strengthening the company's financial position.

Hero Motors plans to use Rs 190 crore to repay or reduce its borrowings. Lower debt could help the company manage its financial obligations and support its future business requirements.

Another Rs 200 crore has been earmarked for purchasing equipment required for capacity expansion at the company's manufacturing facility in Gautam Buddha Nagar, Uttar Pradesh.

The remaining funds are intended for potential acquisitions, strategic initiatives and general corporate purposes. These investments are expected to support the company's broader expansion plans.

Hero Motors' Powertrain and Automotive Technology Business

Hero Motors operates in the automotive technology sector, with a focus on engineered powertrain systems for electric as well as conventional vehicles.

The company's capabilities cover several stages of product development, including engineering design, prototyping, validation, development and component manufacturing.

Its technology and components are used across multiple vehicle categories. These include two-wheelers, e-bikes, performance vehicles, off-road applications, electric and hybrid cars and heavy-duty vehicles.

Beyond conventional automotive applications, Hero Motors also has capabilities serving areas such as aerospace and electric vertical take-off and landing (eVTOL) platforms.

Global Customer Base and Industry Presence

Hero Motors serves customers across the automotive and mobility ecosystem. Its customer portfolio includes names such as BMW, Ducati, Enviolo, Formula Motorsport, Hummingbird EV and HWA.

The company's presence across electric mobility, conventional powertrains and specialised vehicle applications gives it exposure to multiple segments of the evolving mobility industry.

As vehicle manufacturers continue to develop electric, hybrid and performance-oriented platforms, demand for specialised powertrain technologies and engineering solutions remains an important area for companies operating in this space.

Hero Motors IPO Listing and Issue Managers

Following the IPO, Hero Motors' equity shares are proposed to be listed on both the National Stock Exchange (NSE) and the BSE.

ICICI Securities, DAM Capital Advisors and JM Financial have been appointed as the book-running lead managers for the issue. KFin Technologies is acting as the registrar to the IPO.

The listing will give public-market investors an opportunity to participate in Hero Motors' growth story and track the company's performance as a listed automotive technology business.

Conclusion

Hero Motors is entering the public markets with a Rs 1,000-crore IPO after securing Rs 299.99 crore from anchor investors. The issue opens on September 16 and closes on September 18, with shares priced between Rs 79 and Rs 84.

The company plans to allocate fresh IPO proceeds towards debt repayment, manufacturing capacity expansion, strategic initiatives and general corporate purposes. Its focus on powertrain technology across conventional and electric mobility segments will remain central to its business as it moves towards its proposed NSE and BSE listing.