Hero Motors IPO

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Hero Motors IPO details

To be announced
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1200cr

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Download prospectus (PDF)

About Hero Motors

Hero Motors Limited is an India-based automotive technology and manufacturing company, incorporated in 1998 and part of the Munjal family’s automotive legacy. The company is promoted by Pankaj Munjal, Charu Munjal, Abhishek Munjal and O P Munjal Holdings. It operates as a system-level solutions provider to global original equipment manufacturers (OEMs).

The company’s operations are organised into two core segments: Powertrain Solutions and Alloys & Metallics. It designs, engineers, manufactures and supplies gears, transmissions, powertrain systems, alloy components and precision metal parts. Its offerings cater to both electric and internal combustion platforms across two-wheelers, performance vehicles, e-bikes, off-road vehicles and select automotive applications.

Hero Motors follows a B2B business model, working closely with OEM customers from early design and prototyping through validation and serial production. It combines manufacturing scale with in-house engineering and R&D capabilities. Key strengths include deep domain expertise in powertrain technologies, long-standing customer relationships, global delivery capabilities and strong promoter backing, positioning the company as a strategic partner in the evolving mobility ecosystem.

Financials

Financial Year Ended March 2023 March 2024 December 2024
Total Assets 992.02 1059.86 1177.79
Revenue 1070 1083.42 823.8
Profit After Tax 40.51 17.04 22.39

Issue size

Funds Raised in the IPO Amount
Total issue size 1200
Fresh Issue – Proceeds go to the company 800
Offer for sale – Proceeds go to the existing investors 400

Utilisation of Proceeds

Purpose INR crores (%)
Repayment/prepayment of borrowings 285 (35.63%)
Capital expenditure for capacity expansion (U.P. facility) 237 (29.63%)
Inorganic growth, strategic initiatives & general corporate purposes 278 (34.74%)

Strengths

  • Strong promoter backing with long-standing experience in the automotive sector.
  • Diversified portfolio across EV and ICE powertrain solutions and metal components.
  • Established relationships with global OEM customers.
  • Integrated capabilities across design, engineering and manufacturing.
  • Positioned to benefit from vehicle electrification and mobility trends.

Risks

  • High revenue dependence on a limited number of key customers.
  • Exposure to cyclical demand in the automotive industry.
  • Significant reliance on international, especially European, markets.
  • Vulnerability to raw material price volatility and supply disruptions.
  • Execution risks in capacity expansion and EV transition strategy.