Following not the strongest market debut, Hero Motors shares showed a sharp recovery, rising by 20 percent and reaching the upper price level on Wednesday. At the market open, the company was trading at a 2 percent discount to the IPO price, but during the day, the shares grew by 22 percent from their minimum value.
On the BSE and NSE exchanges, Hero Motors shares opened lower: on the BSE, they started 2.26 percent below at ₹82.10, and on the NSE—2.38 percent lower, at ₹82. Before the debut, the Grey Market Premium (GMP) forecast indicated a discounted placement, with the estimated issue price under current market trends being ₹81, while the upper price band was set at ₹84.
Shivani Nyati, Head of Wealth at Swastika Investmart, noted that Hero Motors' debut was subdued and slightly below the IPO price. She added that despite the company's strong position in powertrain solutions and the potential growth of electric vehicles, its valuation, around 69–74 times P/E, remains significantly above the industry average of 50.2 times. Nyati assigned the stock a 'Neutral' rating and advised investors to wait for an improvement in valuation or price consolidation before making new decisions.
The initial public offering of Hero Motors attracted applications for 58.97 crore shares against an offer of 8.86 crore, securing an oversubscription of 6.66 times. Among participants, the QIB segment was subscribed 1.49 times, non-institutional investors (NII) 9.86 times, while retail individual investors (RII) subscribed 8.23 times.
Hero Motors IPO Details
The IPO opened for subscription on September 16 and closed for applications on September 18, 2026. The placement included a fresh equity issue worth up to ₹600 crore and an offer totaling up to ₹400 crore from O P Munjal Holdings and Hero Cycle. The company set the issue price range from ₹79 to ₹84 per share, and the application lot size is 178 shares.
Prior to the IPO, on August 15, 2026, Hero Motors raised ₹2,44.98 crore from anchor investors. The board of directors allocated 2.91 crore shares at ₹84 each to 16 anchor investors.
Hero Motors is an Indian automotive technology company that designs, develops, manufactures, and supplies engineering solutions for powertrains to automakers in India, Europe, the USA, and ASEAN countries. The company offers powertrain systems for electric and non-electric applications in segments such as two-wheelers, e-bikes, sports cars, SUVs, electric and hybrid vehicles, and heavy trucks.
The company operates in the powertrain solutions and alloys and metals segments, with six manufacturing facilities in India, the UK, and Thailand as of March 31, 2026. In fiscal year 26, powertrain solutions accounted for 53.67 percent of revenue, and alloys and metals accounted for 46.33 percent. The company serves global clients, including BMW, Ducati, Enviolo, Formula Motorsport, Hummingbird EV, and HWA. ICICI Securities Ltd. acts as the lead placement manager, and Kfin Technologies Ltd. is the registrar of the issue.