Hero Motors IPO Day 3 GMP: Issue subscribed over 4x, GMP at 7% — Should you subscribe?

The Hero Motors IPO has entered its third and final day of bidding, with the issue witnessing steady investor participation. As of 11.10 AM IST, the IPO has been subscribed 4.09 times, against the total offer of 8.86 crore shares. The retail investor portion has seen stronger demand, with subscriptions reaching 5.99 times the reserved 4.43 crore shares.

In the unofficial grey market, the IPO is currently commanding a 7% premium over its issue price. If the prevailing sentiment holds, this could indicate potential gains when the shares make their market debut, although grey market premiums are unofficial and can change before listing.

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 79–84 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.

The allotment for the Hero Motors IPO is expected to be finalized on September 21, 2026. Hero Motors IPO will list on the NSE and BSE with a tentative listing date fixed as September 23, 2026.

Read More: SS Retails IPO GMP Today Live Updates

ICICI Securities Ltd. is leading the issue as the book-running lead manager, with Kfin Technologies Ltd. serving as the registrar.

Ahead of the issue, Hero Motors successfully secured Rs 300 crore from anchor investors, allocating 3,57,14,284 equity shares at Rs 84 apiece.

Hero Motors IPO Subscription Status

As of 11:10 am on Day 3, the IPO continued to attract strong investor interest, with the issue subscribed 4.09 times overall against the 8.86 crore shares on offer.

• Retail Individual Investors (RIIs): Led the subscription activity, with their portion subscribed 5.99 times against the 4.43 crore shares reserved for them.
• Non-Institutional Investors (NIIs): The NII category was subscribed 5.04 times, compared with its allocation of 1.89 crore shares.
• Qualified Institutional Buyers (QIBs): Institutional participation remained relatively subdued, with the QIB portion receiving bids for 7% of the 2.53 crore shares reserved for the category.

Read more: NSE IPO Tracker: Catch all the Updates here

Hero Motors IPO GMP

The Hero Motors IPO is currently trading at a Grey Market Premium (GMP) of Rs 6, reflecting a 7% gain over its upper price band of Rs 84. At this level, the estimated listing price sits around Rs 90. Investors should note, however, that GMP is an unofficial market indicator subject to fluctuation ahead of the official debut and does not guarantee final listing performance or returns.

Where will the proceeds from Hero Motors IPO be utilised?

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 specializes 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.

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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 valuing at P/E of 92.6x and EV/EBITDA of 34.38x with 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." The brokerage stated.

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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