Hero Motors IPO Opens With Rs 19 GMP: Key Details and Risks
Hero Motors’ Rs 1,000-crore IPO is open from September 16-18, with a Rs 19 grey market premium and improving financial performance.
Hero Motors’ Rs 1,000-crore IPO opened for subscription on September 16 and will remain available until September 18. The shares are expected to list on the NSE and BSE on September 23, with the price band fixed at Rs 79-84 per share. The minimum retail investment at the upper price band is Rs 14,952 for one lot of 178 shares.
The IPO includes a fresh issue of Rs 600 crore and an offer for sale worth Rs 400 crore. In the grey market, the premium stood at Rs 19 on September 16. At the upper price band, this implies an indicative listing price of around Rs 103, or a 22.62% premium. However, GMP is unofficial and does not guarantee listing gains.
Hero Motors develops powertrain solutions for global automotive manufacturers, with products covering electric, hybrid and internal-combustion platforms. Its customers include BMW, Ducati and other global companies. The company operates six manufacturing facilities across India, the UK and Thailand.
Financially, revenue rose from Rs 1,064.39 crore in FY24 to Rs 1,188.35 crore in FY26, while EBITDA increased from Rs 86.28 crore to Rs 147.78 crore. Profit after tax rose from Rs 17.04 crore to Rs 41.17 crore during the same period.
Key risks include overseas exposure, high customer concentration and dependence on steel. The top 10 customers contributed 72.89% of FY26 revenue, while Europe accounted for 33.59%.
The IPO therefore combines improving financial performance and exposure to EV technologies with concentration and raw-material risks that investors may need to assess before subscribing.
