The initial public offering (IPO) of Hero Motors Ltd demonstrated robust investor interest, achieving an overall subscription of 3.37 times by the close of its second day of bidding on Thursday, September 17, 2026. The issue, which opened for subscription on September 16, is set to conclude on Friday, September 18.
Subscription Breakdown
Data from stock exchanges revealed strong demand across various investor categories. The retail individual investors' (RIIs) portion was particularly active, garnering subscriptions of 5.02 times its allotted shares. Non-institutional investors (NIIs) also showed considerable interest, subscribing to their quota 3.9 times. In contrast, the qualified institutional buyers' (QIBs) segment saw a more subdued response, with a subscription rate of 0.07 times.
Brokerage Recommendations
Several prominent brokerage firms have recommended subscribing to the Hero Motors IPO. Anand Rathi, BP Wealth, and Ventura Securities are among those advising investors to participate in the offering.
Anand Rathi highlighted Hero Motors as an India-based automotive technology company specializing in designing, developing, manufacturing, and supplying highly engineered powertrain solutions. The company caters to automotive original equipment manufacturers (OEMs) across key global markets, including the US, Europe, India, and ASEAN regions. The brokerage noted the company's valuation at a price-to-earnings (P/E) multiple of 92.6 times and an enterprise value-to-EBITDA (EV/EBITDA) multiple of 34.38 times based on FY26 earnings, recommending a 'Subscribe - Long Term' stance.
BP Wealth emphasized Hero Motors' role as a primary B2B supplier to OEMs, with extensive capabilities spanning the entire powertrain value chain. This includes design, development, prototyping, validation, and manufacturing. Valuing the stock at a P/E multiple of 73.7 times FY26 earnings (based on diluted EPS of Rs 1.1 at the upper price band), BP Wealth issued a 'SUBSCRIBE' recommendation. Their positive outlook stems from the company's expanding e-mobility portfolio, strong global OEM relationships, strategic investments in technology and manufacturing, and consistent improvements in profitability.
IPO Details
Hero Motors has established a price band for its IPO between Rs 79 and Rs 84 per equity share, each with a face value of Rs 10. Investors are required to bid for a minimum of 178 equity shares, with subsequent bids in multiples of this quantity.
The IPO structure includes a fresh issue component of up to Rs 600 crore, alongside an offer for sale (OFS) of equity shares valued at up to Rs 400 crore. The OFS is being conducted by promoters O P Munjal Holdings and Hero Cycles Limited.
The proceeds from the fresh issue are earmarked for several strategic initiatives: Rs 190 crore will be utilized for the repayment, prepayment, or redemption of specific outstanding borrowings. Another Rs 200 crore is allocated for capital expenditure, specifically for equipment needed to expand capacity at the company's facility in Gautam Buddha Nagar, Uttar Pradesh. Additionally, funds will be directed towards inorganic growth through unidentified acquisitions and other strategic initiatives, as well as general corporate purposes.