Auto Parts Maker Hero Motors Sets Price Band At ₹79-84 For ₹1,000 Cr IPO

Auto parts maker Hero Motors Ltd on Thursday fixed a price band of ₹79-84 per equity share for its ₹1,000 crore Initial Public Offering (IPO), which will open for subscription on September 16.

The three-day initial share sale will close on September 18, according to a public announcement.

The IPO comprises a fresh issue of equity shares aggregating up to ₹600 crore and an Offer For Sale (OFS) of shares worth up to ₹400 crore by promoters.

As part of the OFS, O P Munjal Holdings will divest shares worth ₹395 crore, while Hero Cycles Ltd will sell shares to the tune of ₹5 crore.

Of the fresh issue proceeds, ₹190 crore will be used for repayment or prepayment of certain outstanding borrowings, while ₹200 crore will be utilised to purchase equipment required for capacity expansion at the company's facility in Gautam Buddha Nagar, Uttar Pradesh.

The remaining proceeds will be used for inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes.

In June 2025, Hero Motors had filed its DRHP for a ₹1,200 crore IPO, comprising a fresh issue of ₹800 crore and an OFS of ₹400 crore. The company has since cut the fresh issue to ₹600 crore, taking the total IPO size to ₹1,000 crore, and revised the OFS structure.

Hero Motors is one of India's leading automotive technology companies engaged in designing, developing, manufacturing and supplying highly engineered powertrain solutions to automotive original equipment manufacturers (OEMs) in the US, Europe, India and the Association of Southeast Asian Nations (ASEAN) region.

The company caters to global customers, including BMW AG, Ducati Motor Holding S.P.A., Enviolo International Inc, Formula Motorsport Ltd and Hummingbird EV.

Hero Motors is expected to make its stock market debut on September 23.

ICICI Securities, DAM Capital Advisors and JM Financial are the book-running lead managers to the issue, while KFin Technologies is the registrar.