Hero Motors
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Subscription
- Qualified institutionalQIB
- 1.59×
- Big non-institutionalbNII · above ₹10 lakh
- 8.62×
- Small non-institutionalsNII · ₹2–10 lakh
- 14.17×
- Retail individualRII · up to ₹2 lakh
- 8.20×
Bids received
The demand behind each multiple — what was offered, what was bid for, and what those bids are worth
| Category | Shares offered | Shares bid for | Bids (₹ Cr) | Times |
|---|---|---|---|---|
| Qualified institutional | 2,38,09,525 | 3,77,55,046 | ₹317 Cr | 1.59× |
| Non-institutional | 1,78,57,143 | 18,69,46,636 | ₹1,570 Cr | 10.47× |
| Big non-institutionalwithin NII | 1,19,04,762 | 10,26,02,048 | ₹862 Cr | 8.62× |
| Small non-institutionalwithin NII | 59,52,381 | 8,43,44,588 | ₹708 Cr | 14.17× |
| Total | 8,33,33,334 | 58,39,03,190 | ₹4,905 Cr | 7.01× |
Times subscribed is the figure published for each category, not shares bid for divided by shares offered — a category's multiple is struck against its own allottable base, which is not always the offered count shown beside it. Observed 18 Sep, 04:07 pm IST; the registrar publishes the final basis of allotment.
Issue details
- IPO date
- 16 Sep 2026 – 18 Sep 2026
- Listing date
- 23 Sep 2026
- Face value
- ₹10 per share
- Price band
- ₹79 – ₹84
- Issue price
- ₹84 per share
- Lot size
- 178 shares
- Sale type
- Fresh capital cum OFS
- Issue type
- Book Building issue
- Listing at
- NSE
- Total issue size
- ₹1,000 Cr
- Fresh issue
- ₹600 Cr 7,14,28,571 shares
- Offer for sale
- ₹400 Cr 4,76,19,047 shares
- Market cap at offer price
- ₹3,815 Cr
- Promoter holding
- 84.67% → 61.63% pre-issue → post-issue
- ISIN
- INE012G01022
- CIN
- U29299PB1998PLC039602
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- ICICI Securities Ltd.
- Registered office
- Hero Nagar, GT Road, Ludhiana, Punjab – 141 003, India
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| QIB | 2,53,16,456 | 28.57% | 28.57% |
| Anchor investor · within QIB | 3,57,14,284 | — | 40.31% |
| NII (HNI) | 1,89,87,342 | 21.43% | 21.43% |
| bNII > ₹10L · within NII | 1,26,58,228 | — | 14.29% |
| sNII < ₹10L · within NII | 63,29,114 | — | 7.14% |
| Retail (RII) | 4,43,03,798 | 50.00% | 50.00% |
| Employee | 0 | — | 0.00% |
| Total issue | 8,86,07,596 | — | 100.00% |
Net offer to the public of 8,86,07,596 shares, out of a total issue of 8,86,07,596. Indented rows sit inside the category above them and are not added to it.
Application size
Minimum 178 shares per lot, in multiples, at ₹84
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 178 | ₹14,952 |
| Retail (max) | 13 | 2,314 | ₹1,94,376 |
| S-HNI (min) | 14 | 2,492 | ₹2,09,328 |
| S-HNI (max) | 66 | 11,748 | ₹9,86,832 |
| B-HNI (min) | 67 | 11,926 | ₹10,01,784 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 1.08 | 0.91 |
| P/E (×) | 77.78 | 92.31 |
| Price to book (×) | 6.60 | — |
| Market cap | — | ₹3,815 Cr |
Key performance indicators
- Return on net worth
- 8.53%
- ROCE
- 11.00%
- Debt / equity
- 0.83
- PAT margin
- 3.46%
- EBITDA margin
- 12.44%
- NAV per share
- ₹12.72
- Price to book
- 6.60
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
Company financials
| Period ended | FY26 | FY25 | FY24 |
|---|---|---|---|
| Profit and loss | |||
| Total income | 1,216.74 | 1,111.23 | 1,083.42 |
| Revenue from operations | 1,188.35 | 1,089.59 | 1,064.39 |
| Other income | 28.39 | 21.64 | 19.03 |
| Total expenses | 1,153.78 | 1,072.16 | 1,059.11 |
| Operating profit | 62.96 | 39.07 | 24.31 |
| Operating margin | 5.17% | 3.52% | 2.24% |
| Profit before tax | 61 | 39.08 | 24.31 |
| Profit after tax | 41.17 | 32.8 | 17.04 |
| PAT margin | 3.38% | 2.95% | 1.57% |
| Balance sheet | |||
| Total assets | 1,371.83 | 1,164.62 | 1,059.86 |
| Current assets | 605.9 | 515.54 | 536.1 |
| Current liabilities | 644.52 | 515.48 | 491 |
| Total liabilities | 890.82 | 738.61 | 685.04 |
| Net worth | 481.01 | 426.01 | 374.82 |
| Current ratio | 0.94× | 1.00× | 1.09× |
| Return on equity | 8.56% | 7.70% | 4.55% |
| Cash flow | |||
| Operating cash flow | 144.04 | 48.34 | 131.97 |
| Investing cash flow | -69.39 | -135.23 | -76.93 |
| Financing cash flow | -61.8 | 53.69 | -20.36 |
| Net cash flow | 12.86 | -33.2 | 34.68 |
Objects of the issue
1 Repayment/prepayment/redemption of certain outstanding borrowings ₹190 Cr
The company intends to utilize funds for repayment/prepayment/redemption in full or in part of certain outstanding borrowings to reduce debt servicing costs and enable utilization of internal accruals for business growth and expansion.
2 Capital expenditure for expansion in capacity of Gautam Buddha Nagar facility ₹200 Cr
The company proposes to utilize funds for purchase of equipment required for expansion in capacity at the Gautam Buddha Nagar, Uttar Pradesh facility to increase contribution from systems and e-mobility related products.
3 Funding inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes —
The company intends to deploy funds towards funding inorganic growth through unidentified acquisitions, strategic initiatives, and general corporate purposes including business development initiatives and strategic investments.
1 of 3 objects carry no stated amount — typically general corporate purposes, funded from whatever remains — so the total above is the quantified portion only, not the whole issue.
About Hero Motors
Hero Motors Limited is an Indian manufacturer of powertrain solutions and alloys & metallics components serving the automotive industry. Incorporated in 1998 and incorporated as Hero Motors Limited in 2004, the company generates revenue from two main business segments: Powertrain Solutions (including gears, transmissions, and electric drive units for two-wheelers, e-bikes, and other vehicles) and Alloys & Metallics (sheet metal, tubular assemblies, and component solutions). The company operates six manufacturing facilities across India, the United Kingdom, and Thailand as of March 31, 2026, and employs two technology centres in the UK and India for design and engineering. Approximately 59% of revenue is generated domestically with 34% from Europe. The company has subsidiaries including Hewland Engineering Limited (UK-based transmission specialist), Hero Motors Thai Limited, and joint ventures with Yamaha Motors for electric drive systems.
Management
Pankaj Munjal
MD
Abhishek Munjal
CEO
Strengths
As stated in the offer document
Among India's Leading Solutions Provider to Global E-Mobility Industry backed by Diversified Product and Service Offerings
The company is one of India's leading solutions providers to global e-mobility industry with revenue from e-mobility sales being ₹2,732.90 million (23.00% of operations) in Fiscal 2026, demonstrating expertise in high-performance transmission systems for electric vehicles.
Growing Market Presence in the Electric Bikes and Premium Two-Wheelers Segments
The company has expanded market presence across automotive segments and grown business with premium two-wheeler OEMs globally, partnering with BMW, Ducati and leading American OEMs for comprehensive powertrain solutions.
Longstanding Relationships with Premier Global Original Equipment Manufacturers and Expertise in Delivering Solutions
The company maintains diverse premium customer base serving clients globally with average tenure of relationship with top five customers being over 12 years, including exclusive supplier arrangements with BMW.
Advanced Infrastructure with Geographically Diverse Operations
The company operates six manufacturing facilities across India, United Kingdom and Thailand strategically located for customer proximity and cost competitiveness, with advanced precision manufacturing setups and modern processes.
Strong Research and Development Capabilities and Long-Term Partnerships
The company has significantly increased R&D expenses to ₹895.91 million (7.54% of revenue) in Fiscal 2026, with technology centers in India and UK, and strategic partnerships enhancing design and engineering capabilities.
Legacy of Diverse Growth, Experienced Management Team and Strong Corporate Governance
The company benefits from HMC group legacy including world's largest bicycle manufacturer Hero Cycles Limited, led by experienced board and management team with Pankaj Munjal having over 37 years automotive industry experience.
Risk factors
As stated in the offer document
Geographic Revenue Concentration Risk
The company generates 33.59% of revenue from Europe in Fiscal 2026, exposing it to economic slowdowns, regulatory changes, or geopolitical events in these jurisdictions. Any adverse events affecting Europe could significantly impact revenue from operations and business performance.
Industry Dependence on E-bikes and Two Wheelers
The company's business is heavily dependent on e-bikes (12.92% of revenue) and two wheelers (41.00% of revenue) industries. Any adverse changes in these industries, including shifts in consumer demand or regulatory changes, can adversely impact business operations and financial condition.
Customer Concentration Risk
The company derives 72.89% of revenue from its top 10 customers in Fiscal 2026, with the top customer contributing 35.57%. Loss of any major customers could have a material adverse effect on business, financial condition, and results of operations.
Supplier Dependency and Supply Chain Risk
The company relies on purchase orders with suppliers without definite-term agreements, exposing it to production disruptions. Raw materials represent 54.99% of revenue in Fiscal 2026, and supplier performance issues could adversely affect manufacturing operations and output.
Product Quality and Warranty Liability Risk
The company is subject to strict performance requirements including quality and delivery standards with unlimited liability clauses. Product defects or recalls could result in warranty claims, customer loss, and litigation, as evidenced by a customer product recall in Fiscal 2026.
Technology and Market Adaptation Risk
The company may not be able to anticipate and respond to changing technological trends and customer demands in the automotive sector. Failure to innovate or keep up with technological advancements could adversely affect competitiveness and business results.
Manufacturing Facility Operational Risk
The company operates six manufacturing facilities across India, UK, and Thailand subject to operating risks including equipment failures, regulatory actions, and supply chain disruptions. Any shutdown could reduce sales and adversely affect business operations.
Capital Intensive Business and Financing Risk
The company has substantial capital expenditure requirements with ₹922.51 million in Fiscal 2026. Outstanding debt includes ₹987.69 million long-term and ₹3,020.20 million short-term debt with a debt-to-equity ratio of 0.83, creating financing and covenant compliance risks.
Company Analysis
from RHPHero Motors Limited manufactures electrified and non-electrified powertrain solutions and alloys & metallics components for automotive OEMs in the two-wheeler, e-bike, motorsport, and other automotive segments across India and international markets.
Hero Motors Limited is an Indian manufacturer of powertrain solutions and alloys & metallics components serving the automotive industry. Incorporated in 1998 and incorporated as Hero Motors Limited in 2004, the company generates revenue from two main business segments: Powertrain Solutions (including gears, transmissions, and electric drive units for two-wheelers, e-bikes, and other vehicles) and Alloys & Metallics (sheet metal, tubular assemblies, and component solutions). The company operates six manufacturing facilities across India, the United Kingdom, and Thailand as of March 31, 2026, and employs two technology centres in the UK and India for design and engineering. Approximately 59% of revenue is generated domestically with 34% from Europe. The company has subsidiaries including Hewland Engineering Limited (UK-based transmission specialist), Hero Motors Thai Limited, and joint ventures with Yamaha Motors for electric drive systems.
Objects of the Issue
- Funding capex for purchase of equipment ₹2,000.00 million p.35
- Repayment/pre-payment/redemption, in full or in part, of certain outstanding borrowings availed by our Company p.45
- Funding capital expenditure of our Company through purchase of equipment required for capacity enhancement of our Gautam Buddha Nagar, Uttar Pradesh facility p.45
- Funding inorganic growth through unidentified acquisitions and general corporate purposes p.45
- Repayment/prepayment/redemption, in full or in part, of certain outstanding borrowings availed by our Company ₹1,900.00 million p.119
- Capital expenditure of our Company through purchase of equipment required for expansion in capacity of our Gautam Buddha Nagar, Uttar Pradesh facility ₹2,000.00 million p.124
- Funding inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes [●] p.119
- Not stated in this document section
- Not specified in this section of the document
Issue Structure
- Total Issue
- Up to ₹10,000.00 million
- Fresh Issue
- Up to ₹6,000.00 million
- Offer for Sale
- Up to ₹4,000.00 million
- Face Value
- ₹10 per Equity Share
Business Model
The company manufactures and supplies precision-engineered powertrain and alloys & metallics components to original equipment manufacturers (OEMs) on a make-to-print and design basis. Revenue is generated through sale of products to automotive customers in India and internationally, with customers including Hero MotoCorp, BMW-AG, enviolo, and others. The company relies on internal accruals and credit facilities for working capital.
Business Segments
SWOT Analysis
- • Diversified geographic revenue base with significant international presence(p.26)
- • Diversified end-use customer base across multiple automotive segments(p.27)
- • Strong gross margins demonstrating operational efficiency(p.32)
- • Improved profitability trajectory with growing EBITDA margins(p.32)
- • Diversified product portfolio across powertrain and alloy/metallics segments(p.44)
- • Established EBITDA growth trajectory with 30.88% CAGR over three years(p.43)
- • Strong profitability growth with 55.46% CAGR in restated profit over three years(p.43)
- • Multiple manufacturing facilities across geographies including India and international locations(p.49)
- • Established credit rating of CRISIL A+ / Stable (Long term) maintained for multiple years(p.59)
- • Leading e-mobility solutions provider with diversified product portfolio(p.131)
- • Strong global customer relationships with premium OEMs including BMW, Ducati, and leading international manufacturers(p.131)
- • Geographically diversified manufacturing operations across India, UK, and Thailand enabling cost-competitive solutions(p.131)
- • Significant R&D investment with 7.54% of revenue committed to research and development(p.134)
- • High capacity utilization at main Gautam Buddha Nagar facility with 88.25% utilization in powertrain segment(p.124)
- • Improved financial profitability with EBITDA margin expanding to 12.44% in Fiscal 2026 from 8.11% in Fiscal 2024(p.134)
- • Established tax benefits under concessional corporate tax regime(p.144)
- • Access to export promotion schemes including RoDTEP and EPCG(p.146)
- • Import cost advantages through trade agreements(p.147)
- • Duty drawback benefits on exported goods(p.146)
- • Zero-rated export of goods under GST with refund eligibility(p.147)
- • First-mover advantage in global e-bike powertrain sector from India(p.258)
- • Only player manufacturing and exporting CVT hubs to global e-bike OEMs from India(p.258)
- • Among few companies addressing premium ICE segment with high-performance transmission systems(p.258)
- • International product development and design center operations(p.262)
- • Recognized leadership in CVT, EV transmission, electric motors and integrated drive units(p.258)
- • Strategic partnerships with global technology leaders including Yamaha Motors Japan and enviolo(p.261)
- • Global customer base including premium OEMs like BMW, Ducati, and Formula Motorsport(p.258)
- • Fully integrated powertrain systems provider with design, prototyping, validating and delivering capabilities(p.258)
- • Leading e-mobility solutions provider with diversified product offerings(p.265)
- • Capability in high-performance EV transmission systems with global customer base(p.265)
- • Growing presence in premium two-wheelers and e-bikes with OEM partnerships(p.266)
- • Geographically diversified manufacturing footprint for cost-competitiveness and customer proximity(p.268)
- • Strong R&D capabilities and investment in technology centers(p.269)
- • Experienced management team with long tenure and shareholding incentives(p.270)
- • First-mover advantage in CVT hubs and integrated e-bike powertrain solutions(p.295)
- • Established consolidated operations with multiple subsidiaries and international presence(p.362)
- • Diversified product portfolio across electric drive systems and powertrain technologies(p.391)
- • Advanced manufacturing capabilities with state-of-the-art facilities(p.391)
- • Strong capital deployment and investment in R&D through intangible asset development(p.391)
- • Diversified customer base across geographies and vehicle segments(p.451)
- • Strong R&D capabilities with dedicated technology centers and personnel(p.454)
- • Only Indian manufacturer of CVT hubs for global e-bike OEMs(p.453)
- • Strategic partnerships with global technology leaders(p.453)
- • Acquisition of Hewland expanding design and validation capabilities(p.453)
- • Revenue growth from core segments with improving margins(p.443)
- • Standardized inventory valuation and accounting controls(p.461)
- • Structured employee benefit administration through established schemes(p.462)
- • Robust financial reporting framework with deferred tax optimization(p.465)
- • Heavy concentration of revenue on a small customer base(p.29)
- • Top customer alone represents over one-third of revenue(p.29)
- • Dependence on limited set of raw material suppliers without definitive supply agreements(p.28)
- • Multiple subsidiaries incurring losses, draining company resources(p.33)
- • Extended working capital cycle with high inventory and receivable days(p.35)
- • Delays in payment of statutory dues including provident fund and taxes(p.39)
- • Litigation involving promoters and regulatory compliance issues(p.36)
- • Significant indebtedness with debt-to-equity ratio of 0.83 as of March 31, 2026(p.45)
- • High proportion of short-term borrowings with 41.87% of total outstanding borrowings payable on demand(p.45)
- • Under-utilization of manufacturing capacities at some facilities; HYM facility at 14.56% and Spur facility at 50.29% in Fiscal 2026(p.58)
- • Significant loss of historical corporate and secretarial records spanning multiple decades(p.50)
- • Promoter group member entity (Nipman Fastener Industries Private Limited) is in liquidation under Insolvency and Bankruptcy Code(p.51)
- • Incomplete ownership of Mangli Facility with ₹22.82 million still unpaid and 0.60 acres remaining to be registered(p.50)
- • Promoter involvement in litigation regarding usage and assignment of HERO trademark(p.43)
- • High customer concentration with top 5 customers representing significant trade receivables(p.47)
- • High employee attrition rate at 22.24% in Fiscal 2026, increasing from 14.42% in Fiscal 2024(p.55)
- • High financial leverage with Net Debt to Adjusted EBITDA of 2.24x as of March 31, 2026(p.135)
- • Outstanding borrowings of ₹2,895.45 million requiring debt repayment from IPO proceeds(p.121)
- • Low profitability margins with PAT margin of only 3.46% in Fiscal 2026(p.134)
- • Dependence on managing unidentified acquisitions with unclear deployment timing and success risks(p.126)
- • Missing historical corporate and secretarial records creating regulatory compliance risk(p.90)
- • Tax benefit eligibility dependent on fulfilling prescribed conditions(p.141)
- • Limited scope for tax deductions if opting for concessional corporate tax rate(p.143)
- • Uncertain continuation of tax benefits in future(p.141)
- • No assurance that revenue authorities will concur with tax positions(p.147)
- • High net debt to Adjusted EBITDA ratio indicating leverage concerns(p.263)
- • Declining Return on Capital Employed over recent fiscal years(p.263)
- • Declining asset turnover ratio indicating asset utilization challenges(p.263)
- • Geographic concentration risk with India accounting for 58.64% of revenue(p.263)
- • Relatively low profit margin despite growing revenue(p.263)
- • High concentration of revenue among top customers(p.268)
- • Rising employee attrition rate impacting workforce stability(p.296)
- • Declining headcount and dependency on contract labor(p.295)
- • Significant lease-dependent property portfolio with potential execution delays(p.296)
- • Low capacity utilization at newer facilities indicating execution challenges(p.281)
- • Significant accumulated losses in key subsidiary HYM Drive Systems(p.391)
- • Negative equity position in consolidated structure(p.401)
- • Dependence on shareholder support for continuity of operations(p.391)
- • High leverage with substantial borrowing obligations(p.404)
- • High dependence on key customers for revenue(p.433)
- • Significant debt obligations requiring repayment(p.427)
- • High finance costs impacting profitability(p.411)
- • Negative net working capital position(p.439)
- • Unrecognized deferred tax assets in subsidiary companies(p.408)
- • Litigation contingencies related to pending labor and supplier claims(p.420)
- • Concentration of receivables credit risk requiring expected credit loss provisions(p.467)
- • Dependency on lease arrangements for operational facilities(p.466)
- • Exposure to foreign currency fluctuations in international operations(p.482)
- • Significant pending labor litigation creating contingent liabilities(p.481)
- • Strategic positioning in high-growth e-mobility segment(p.27)
- • Expansion into new geographic markets and ASEAN region(p.40)
- • Strategic acquisitions and joint ventures to expand product portfolio(p.40)
- • Technology center capabilities for design and engineering services(p.32)
- • Expansion of manufacturing capacity with two new facilities under development(p.32)
- • Expected growth in electric vehicle industry and associated demand for EV powertrains(p.44)
- • Capacity expansion through Net Proceeds deployment for equipment purchase at GB Nagar facility(p.45)
- • Inorganic growth opportunities through acquisitions using portion of Net Proceeds(p.45)
- • Strategic joint venture with STP Group to expand forging component manufacturing for automotive sector(p.59)
- • Expansion into new manufacturing facility in Karnataka and strengthened facility in Ludhiana(p.49)
- • Rapidly growing e-bike market projected to reach 12.5-14.5 million units by 2031 at 6-9% CAGR(p.131)
- • Strong electrification trend in motorcycle segment with EV penetration expected to grow from 2% in 2025 to 10.5-12.5% by 2031 at 34-38% CAGR(p.131)
- • Capacity expansion opportunity with planned ₹2,000 million capex for Gautam Buddha Nagar facility to support growth(p.124)
- • Strategic inorganic growth through acquisitions of complementary businesses with up to ₹[●] million allocated(p.126)
- • Expanded international market presence with international revenue representing 41.36% of total revenue in Fiscal 2026(p.134)
- • Employment tax deduction for new hires(p.144)
- • Deduction on scientific research expenditure(p.144)
- • Advance Authorization scheme for duty-free raw material imports(p.146)
- • Potential for inter-corporate dividend tax deduction(p.144)
- • Significant e-bike market growth expected at 6-9% CAGR through 2031(p.212)
- • Mid-drive motor e-bikes expected to witness strong growth at 13-15% CAGR(p.217)
- • CVT hubs market projected to grow at exceptional 33-38% CAGR through 2031(p.248)
- • Electric drive motors for e-bikes market growing at 10-12% CAGR(p.249)
- • Electric drive unit (EDU) for e-bikes market expected to grow 9-11% CAGR(p.249)
- • Expanding ASEAN e-bike market with 7.6% CAGR representing growth opportunity(p.209)
- • European e-bike market (world's largest) continues strong growth with 5.1% CAGR(p.207)
- • US e-bike market growing at 23.1% CAGR representing significant opportunity(p.205)
- • Indian e-bicycle segment projected to grow at 19-23% CAGR through FY31(p.221)
- • Growing premiumization trend in global e-bike market supporting higher value sales(p.213)
- • Rapid growth in global EV penetration across two-wheelers and passenger vehicles(p.265)
- • Expanding global e-bike market with high CAGR growth potential(p.265)
- • Expansion of addressable market in gears & transmissions and bike powertrain segments(p.265)
- • ASEAN region growth opportunity with competitive advantages(p.272)
- • Expansion to non-motorcycle segments including aerospace and defense(p.272)
- • Potential synergies from Hewland design-to-cost expertise in EV market(p.273)
- • Strategic partnerships expanding technological capabilities and market reach(p.274)
- • Expansion of electric drive systems business with confirmed customer orders(p.391)
- • Growth in e-bikes and electric two-wheelers market segment(p.391)
- • International market penetration through subsidiaries(p.362)
- • Development of new motor designs and product variants for market differentiation(p.391)
- • Growing global electric two-wheeler market segment(p.452)
- • Rapid expansion of global e-bike market with strong CAGR(p.452)
- • Growing adoption of automatic transmission in passenger vehicles(p.452)
- • Expansion into DCT transmission technology through new licensing(p.453)
- • Technology partnerships for e-CVP joint development(p.453)
- • Global revenue expansion through international automotive OEM customer base(p.475)
- • Revenue diversification through multiple business segments(p.483)
- • Growth in powertrain segment revenue(p.476)
- • Exposure to European market risks affecting significant portion of revenue(p.26)
- • Dependency on e-bikes and two-wheeler industry performance(p.24)
- • Foreign exchange rate fluctuations affecting international operations(p.40)
- • Intense competition in global powertrain solutions industry(p.24)
- • Technological obsolescence and rapid market changes(p.24)
- • Strict quality and performance requirements from customers(p.28)
- • Hazardous nature of manufacturing operations creating regulatory and safety risks(p.24)
- • Regulatory compliance requirements and environmental restrictions(p.31)
- • Dependence on steel availability and potential supply chain disruptions to primary raw material(p.44)
- • Exposure to power and fuel cost volatility which constitute 2.74% of total expenses(p.44)
- • Uncertainty in demand for EV products with potential decline in EV vehicle preference(p.44)
- • Exposure to foreign exchange fluctuations with 8.66% of revenue unhedged in Fiscal 2026(p.53)
- • Counterparty credit risk with credit cycle extended to 78 days and potential customer defaults(p.47)
- • Dependence on third-party logistics providers for transportation with associated supply chain risks(p.48)
- • Regulatory and licensing compliance risks including requirement to obtain multiple approvals for operations(p.47)
- • Risk of inflation in India impacting production costs without proportional revenue increase(p.63)
- • Global economic and geopolitical uncertainties including Russia-Ukraine and Middle East conflicts affecting commodity prices and supply chains(p.61)
- • Competition law risks under Competition Act 2002 potentially impacting M&A strategy(p.62)
- • Risk of loss or leakage of technical know-how and confidential design information(p.59)
- • Global supply chain disruptions and geopolitical uncertainties affecting international operations and sourcing(p.131)
- • Intense competition from global automotive suppliers in premium segments and emerging EV powertrain solutions(p.131)
- • Currency exchange rate fluctuations affecting international revenue and foreign operations profitability(p.131)
- • Dependence on specific customer relationships for significant revenue concentration risk(p.131)
- • Technology disruption and rapid EV development cycles requiring continuous innovation and R&D investment(p.132)
- • Changes in taxation laws may eliminate or reduce benefits(p.147)
- • Risk of MAT credit limitations under new tax regime(p.144)
- • Export obligation requirements tied to duty-free benefits(p.146)
- • Global e-bike market value declined 1.8% CAGR from CY20-CY25 due to price competition(p.202)
- • Conventional bicycle market experiencing negative growth expected to continue declining(p.212)
- • Asian manufacturers creating intense price competition particularly from China(p.202)
- • US bicycle market in structural decline with volumes down 4% CAGR(p.204)
- • European bicycle market sharp correction with 7.2% CAGR decline(p.206)
- • Two-wheeler market facing headwinds with Indian three-wheeler industry expected de-growth of 1-3% CAGR(p.245)
- • Limited options for fully integrated electric drive unit solutions creating supply chain constraint(p.249)
- • Competition from alternative mobility solutions limiting bicycle industry expansion(p.221)
- • Competition from global players with greater resources and patents(p.295)
- • Regulatory and compliance risks related to e-waste, batteries and emissions(p.298)
- • Dependence on third-party logistics with potential supply chain disruptions(p.290)
- • Power and fuel supply disruptions impacting manufacturing operations(p.290)
- • Global technology competition in emerging hub motor and EDU segments(p.274)
- • Dependency on limited customer base for revenue(p.396)
- • Foreign exchange volatility affecting international operations(p.383)
- • Contractual put and call option liabilities with non-controlling interests(p.362)
- • Industry cyclicality and competition in electric vehicle components(p.401)
- • Volatility in raw material costs and metal prices(p.454)
- • Foreign currency exchange rate exposure(p.429)
- • Dependence on supplier relationships and supply chain risks(p.454)
- • Risk from changes in customer outsourcing strategies and competition(p.453)
- • Macro-economic conditions affecting automotive demand(p.451)
- • Interest rate sensitivity on floating rate borrowings(p.428)
- • Concentration risk from top customers representing majority of revenue(p.483)
- • Cyclical demand dependency on automotive industry(p.483)
- • Exposure to interest rate fluctuation risks on floating rate debt(p.482)
- • Environmental compliance risks and pollution control obligations(p.487)
- • Pending environmental litigation with pollution control boards(p.485)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Pankaj Munjal | Individual Promoter | 2.43% | — |
| Charu Munjal | Individual Promoter | 0.24% | — |
| Abhishek Munjal | Individual Promoter | 0.18% | — |
| O P Munjal Holdings | Promoter Selling Shareholder | 70.60% | — |
| O P Munjal Holdings | Promoter/Promoter Selling Shareholder | 273,123,055 shares | — |
| Pankaj Munjal | Promoter | 9,400,436 shares | — |
| Abhishek Munjal | Promoter | 706,210 shares | — |
| Charu Munjal | Promoter | 942,425 shares | — |
| Hero Cycles Limited | Promoter Group Selling Shareholder | 7,752,750 shares | — |
| O P Munjal Holdings | Promoter Selling Shareholder | 70.60% | [●] |
| Pankaj Munjal | Promoter | 2.43% | [●] |
| Charu Munjal | Promoter | 0.24% | [●] |
| Abhishek Munjal | Promoter | 0.18% | [●] |
| Hero Cycles Limited | Promoter Group Selling Shareholder | 2.00% | [●] |
| Bhagyoday Investments Private Limited | Promoter Group | 6.20% | [●] |
| Aditya Munjal | Promoter Group | 0.18% | [●] |
| Pankaj Munjal (on behalf of Munjal Sales Corporation) | Promoter Group | 0.10% | [●] |
| Pankaj Munjal (on behalf of Om Prakash Pankaj Munjal AOP) | Promoter Group | 2.72% | [●] |
| Not stated in this document section | Promoter/Promoter Group | — | — |
| Pankaj Munjal | Promoter | — | — |
| Pankaj Munjal | Promoter | — | — |
| Pankaj Munjal | Promoter | — | — |
| Charu Munjal | Promoter | — | — |
| Abhishek Munjal | Promoter | — | — |
| O P Munjal Holdings | Promoter Group | — | — |
| Pankaj Munjal on behalf of OP Munjal Holding | Promoter | 77.25% | 76.22% |
| Pankaj Munjal | Promoter | 2.66% | 2.62% |
| South Asia Growth Invest LLC | Promoter Group | 7.34% | 7.24% |
| Bhagyoday Investments Private Limited | Promoter Group | 6.78% | 6.69% |
| Pankaj Munjal | Promoter/Significant Beneficial Owner | — | — |
| OP Munjal Holdings | Promoter | — | — |
| Hero Cycles Limited | Promoter Group | — | — |
| O P Munjal Holdings | Selling Shareholder | — | — |
| Hero Cycles Limited | Selling Shareholder | — | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Peer comparison
| Company | EPS | NAV | P/E | P/BV | RoNW |
|---|---|---|---|---|---|
| Hero Motors THIS ISSUE | 1.15 | 12.72 | 92.31, computed at the offer price | 6.60, computed at the offer price | 8.53% |
| 21.69 | 164.65 | 17.68 | 2.34 | 13.18% | |
| 67.66 | 442.54 | 40.84 | 6.25 | 15.29% | |
| 10.30 | 93.93 | 76.50 | 8.47 | 10.77% | |
| 20.78 | 113.77 | 59.84 | 10.98 | 19.59% | |
| 14.73 | 80.45 | 56.15 | 10.34 | 18.70% |
Blank cells are figures the offer document does not publish. This issue is unlisted, so it has no market price and the document publishes no multiple for it — its P/E and P/BV here are computed at the offer price, on the post-issue share count, and are comparable to a listed peer's.