Hero Motors IPO Day 1: Check subscription status, GMP at 23%. Should you subscribe?

The much-awaited Hero Motors IPO opened for subscription today, September 16, 2026. On the first day of bidding, the issue was subscribed 17% overall, against the 8.86 crore shares on offer. The retail portion was subscribed 26%, against the 4.43 crore shares reserved for retail investors.

The issue will remain open for subscription until September 18, 2026.

Adding to the buzz, Hero Motors is currently commanding a 23% premium in the grey market. If the current GMP trend holds until listing, it suggests market participants are anticipating a potentially strong listing gain.


The Rs 1,000 crore Hero Motors IPO is a book-built issue comprising a fresh issue of 7.14 crore shares worth Rs 600 crore and an offer for sale (OFS) of 4.76 crore shares worth Rs 400 crore.

The IPO has a price band of Rs 79–Rs 84 per share, with a minimum lot size of 178 shares. At the upper end of the price band, retail investors will need to shell out a minimum of Rs 14,952 to bid for one lot.

Hero Motors IPO opens for subscription on Sep 16, 2026 and will close on Sep 18, 2026. The allotment for the Hero Motors IPO is expected to be finalised on September 21, 2026. Hero Motors IPO will list on the NSE and BSE with a tentative listing date fixed as September 23, 2026.

ICICI Securities Ltd. is the book-running lead manager for the issue, while Kfin Technologies Ltd. is acting as the registrar.

Anchor investors

Hero Motors raised Rs 299.99 crore from anchor investors by allotting 3,57,14,284 equity shares at Rs 84 per share. The anchor book saw participation from several marquee institutions, including ICICI Prudential Life Insurance Company Limited, 3P India Equity Fund 1M, Edelweiss Life Insurance Company Limited, Societe Generale – ODI, and ASAS Global Fund Incorporated VCC Sub Fund, among others.

Hero Motors IPO subscription status

On Day 1 of bidding, as of 10:20 am, the Hero Motors IPO was subscribed 17% overall, against the 8.86 crore shares offered.

Retail Individual Investors (RIIs): The retail portion was subscribed 26%, against 4.43 crore shares on offer.

Non-Institutional Investors (NIIs): The NII category was subscribed 19%, against 1.89 crore shares offered.

Qualified Institutional Buyers (QIBs): The QIB portion had not received any bids so far, against 2.53 crore shares on offer.

Hero Motors IPO GMP

The IPO is currently commanding a Grey Market Premium (GMP) of Rs 19, translating to a 23% premium over the upper price band of Rs 84. Based on the current GMP, Hero Motors IPO’s estimated listing price is around Rs 103, indicating a potential listing gain of nearly 23% if the GMP holds until listing.

Note: GMP is an unofficial market indicator and can change before listing. It does not guarantee the actual listing price or returns.

Hero Motors IPO issue objectives

The company plans to use a portion of the IPO proceeds to repay, prepay or redeem certain outstanding borrowings, either fully or partially. It will also allocate funds towards capital expenditure, including purchasing equipment to expand the capacity of its facility in Gautam Buddha Nagar, Uttar Pradesh.

The remaining proceeds will be used to support the company’s inorganic growth plans, including potential acquisitions and other strategic initiatives. A portion of the funds will also be utilised for general corporate purposes.

Financial performance

Hero Motors reported a 9% increase in total income, rising from Rs 1,111.23 crore in FY25 to Rs 1,216.74 crore in FY26. The company’s profit after tax (PAT) grew 26%, from Rs 32.80 crore in FY25 to Rs 41.17 crore in FY26, reflecting an improvement in profitability during the year.

About Hero Motors

Incorporated in April 1998, Hero Motors Limited is an automotive technology company engaged in designing, developing and manufacturing powertrain solutions for OEMs across the US, Europe, India and ASEAN. Its products cater to electric and non-electric applications across two-wheelers, e-bikes, passenger and commercial vehicles, off-road vehicles and eVTOLs.

The Company specialises in CVTs, EV transmissions, electric motors, integrated drive units and gear sets, and has a strong position in the global e-bike powertrain market. It is the only Indian manufacturer producing and exporting CVT hubs and integrated electric powertrain products for e-bikes. Its operations comprise Powertrain Solutions—including Gears & Transmissions (G&T) and Bike Powertrain (BPT)—and Alloys & Metallics (A&M), which supplies sheet metal and tubular components to automotive OEMs.

Hero Motors has established relationships with customers including BMW, Ducati, Enviolo, Formula Motorsport, Hummingbird EV and HWA, supported by in-house engineering and global technology partnerships. As of March 31, 2026, the Company had 1,388 permanent employees and 707 contract labourers.

Should you subscribe?

According to Anand Rathi, Hero Motors has built a differentiated position in automotive technology with capabilities across design, engineering, prototyping and manufacturing. Its portfolio spans CVTs, EV transmissions, electric motors, drive units and gear sets, giving it exposure to both ICE and electric mobility. The company also has a strong presence in e-bike powertrains, while investments in Hewland and its Yamaha Motor Japan JV strengthen its transmission and electric motor capabilities. With operations across India, the UK and Thailand, Hero Motors has a global footprint.

"At the upper price band, the company is valued at P/E of 92.6x and EV/EBITDA of 34.38x with respect to its FY26 earnings and market cap of Rs.38,154 million post issue of equity shares. We believe that the IPO is fully priced and recommend a 'Subscribe-Long Term' rating to the IPO.

According to Master Capital Services, India’s automotive and two-wheeler industry is poised for healthy growth, driven by rising vehicle demand, premiumisation and increasing adoption of advanced powertrain technologies. The two-wheeler industry is projected to grow at 6–7% CAGR to 29–31 million units by FY31, while electrification is expected to create significant new growth opportunities. Hero Motors is positioned to benefit from these trends through its Powertrain Solutions and Alloys & Metallics businesses, with exposure to both ICE and EV platforms. Its expertise in electric motors, EV transmissions and e-bike powertrains provides further exposure to the rapidly expanding electric mobility segment. Investors may consider the IPO as a potential long-term investment opportunity.

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