Hero Motors IPO Opens: Rs 1000 Crore Subscription Begins

Hero Motors' Initial Public Offering (IPO) commenced its subscription period on September 16, seeking to raise Rs 1,000 crore from the public. The offering will remain open until September 18, with shares slated for listing on the NSE and BSE on September 23. The IPO price band has been set between Rs 79 and Rs 84 per share.

This automotive technology company designs, develops, and manufactures powertrain solutions for global original equipment manufacturers (OEMs) across the US, Europe, India, and ASEAN. Its product portfolio spans electric vehicles, internal combustion engine, and hybrid vehicles, catering to a diverse range of automotive segments.

Hero Motors has reported improved financial performance over the last three fiscal years, with revenue from operations and profit after tax showing consistent growth. The company is using funds from the Rs 600 crore fresh issue for debt repayment, capacity expansion, and strategic initiatives.

Investors should consider potential risks such as significant exposure to overseas markets and customer concentration, as the top 10 customers contributed over 70% of revenue in FY26. Fluctuations in steel prices and limited supplier agreements also pose risks.