Q1. What is the business of Hero Motors Limited?

It designs and manufactures high-precision powertrain components and transmission systems for automotive OEMs, supplying global brands across Europe, the US, India and ASEAN markets.

Q2. Why is the company raising funds via IPO?

Hero Motors is raising funds via IPO for debt repayment, capacity expansion at its Uttar Pradesh plant, strategic acquisitions, and general corporate purposes to support future growth.

Q3. What is the size of the issue and where will it list?

The issue size of the IPO comprises of ₹1,200 Crore, including ₹ 800 Crore as Fresh Issue and ₹400 crore OFS. It will be listed on BSE and NSE platform.

Q4. What are the key risks to an investor?

Key risks include from automotive industry cyclicality, dependence on key OEM customers, global supply chain disruptions, and fluctuations in raw-material prices affecting profitability.

Q5. What are the potential upsides?

Upsides include strong Hero Group backing, global premium OEM clients, rising demand for EV powertrain components, and expansion plans could drive long-term growth and investor value.

Q6. How to apply for the IPO?

Investors can apply for the IPO through ASBA via net banking or using UPI through registered stock brokers once the IPO opens for subscription.

Hero Motors Limited

Upcoming

Hero Motors Limited

Market Cap

—

IPO Issue Size

₹ 1200 Cr

Expected Price by IPOCorner

—

IPO Score

*Score varies on actual price

Hero Motors Limited is an auto-components manufacturer that designs, develops and supplies advanced powertrain solutions for global OEMs. The company’s products are used in vehicles such as two-wheelers, e-bikes, high-performance cars, off-road vehicles and electric or hybrid vehicles across markets like the US, Europe, India and ASEAN.

Hero Motors Limited was incorporated in 1998.Mr. Amit Gupta serves as the Managing Director & Chief Executive Officer of the company.

It provides powertrain solutions (gears, transmissions, and EV powertrain systems) and alloy & metallic components for automotive OEMs, including two-wheelers, e-bikes, electric vehicles, and performance automobiles.It operates 6 manufacturing facilities across India, the United Kingdom, and Thailand with 2 R&D centres supporting its operations.The company serves automotive customers in more than 21 countries, supplying components to global brands like BMW and Ducati.

Subscription date to apply for Hero Motors Limited is yet to be announced. Price band for the IPO is yet to be declared.

Year	2024
Networth	₹ 385.44 Cr
Revenue	₹ 1064.38 Cr
EBITDA	₹ 82.80 Cr
PAT	₹ 17.03 Cr
EBITDA Margin	~ 7.78%
PAT Margin	~ 1.60%
Face Value	Rs.10 per Equity Share

IPO Important Dates

#	Date
Open Date	TBA
Close Date	TBA
Anchor Investor Bidding	TBA
Allotment Date	TBA
Refunds& Demat Credit	TBA
Tentative Listing Date	TBA

Use Of Proceeds

Purpose	Amount
Borrowing repayment	₹ 285 Cr
Capacity Expansion	₹ 237 Cr
-	-
-	-
-	-
General Corporate Purpose	Balance

Financial Data

#	2022	2023	2024
Revenue (₹ Cr)	914.19	1054.62	1064.38
PAT (₹ Cr)	99.02	40.5	17.03
Asset (₹ Cr)	703.12	992.01	1059.85
Net Worth (₹ Cr)	159.1	344.46	385.44

IPO Grey Market Premium

Date	IPO Price	IPO GMP	Profit Per Lot
23-Aug	₹ –	₹ –	₹ –
22-Aug	₹ –	₹ –	₹ –
21-Aug	₹ –	₹ –	₹ –
20-Aug	₹ –	₹ –	₹ –
19-Aug	₹ –	₹ –	₹ –

Pros

Part of the well-known Hero Group, which has strong brand reputation in the automotive sector.
Strong global client base including premium automotive OEMs in Europe and the US.
Growing demand for EV and powertrain components supports long-term business growth.
Presence in multiple countries with advanced manufacturing and R&D capabilities.
Funds from the IPO will be used for debt reduction and expansion, which may strengthen the balance sheet.

Cons

Highly dependent on the cyclical automotive industry, which can affect revenues.
Large revenue concentration from a few key customers.
Faces strong competition from other global auto-component manufacturers.
Business performance is affected by raw material price fluctuations.
Declining profits in the past few years.

Promoters – Pre offer equity (Approx)

Promoters	% Shares
O P Munjal Holdings	~ 71.09 %
Pankaj Munjal	~ 2.45 %
Charu Munjal	~ 0.25 %
-	-
-	-
-	-

Lot Size details

Application Type	Lot Size	No. of Lot	No. of Shares	Investment Amount
Retail (Min)	–	1	–	₹ –
Retail (Max)	–	13	–	₹ –
HNI (Min)	–	14	–	₹ –
HNI (Max)	–	66	–	₹ –
Big HNI (Min)	–	67	–	₹ –

Key Performance Index (KPI)

ROE	00
ROCE	00
RoNW	00

Lead / Book Running Lead Managers

ICICI Securities Limited, DAM Capital Advisors Limited, JM Financial Limited

Registrar (RTA)

KFin Technologies Limited

Q1. What is the business of Hero Motors Limited?
It designs and manufactures high-precision powertrain components and transmission systems for automotive OEMs, supplying global brands across Europe, the US, India and ASEAN markets.
Q2. Why is the company raising funds via IPO?
Hero Motors is raising funds via IPO for debt repayment, capacity expansion at its Uttar Pradesh plant, strategic acquisitions, and general corporate purposes to support future growth.
Q3. What is the size of the issue and where will it list?
The issue size of the IPO comprises of ₹1,200 Crore, including ₹ 800 Crore as Fresh Issue and ₹400 crore OFS. It will be listed on BSE and NSE platform.
Q4. What are the key risks to an investor?
Key risks include from automotive industry cyclicality, dependence on key OEM customers, global supply chain disruptions, and fluctuations in raw-material prices affecting profitability.
Q5. What are the potential upsides?
Upsides include strong Hero Group backing, global premium OEM clients, rising demand for EV powertrain components, and expansion plans could drive long-term growth and investor value.
Q6. How to apply for the IPO?
Investors can apply for the IPO through ASBA via net banking or using UPI through registered stock brokers once the IPO opens for subscription.