Hero Motors IPO GMP jumps 23% on Day 1; check key dates, review, subscription. Should you apply or skip?

Hero Motors IPO opens for subscription on September 16 and closes on September 18, with a price band of ₹79-84. The IPO includes a fresh issue of shares worth ₹600 crore and aims to capitalize on the electric vehicle market growth.

The Hero Motors IPO will open for subscription on Wednesday, 16 September, and will close on Friday, 18 September. The Hero Motors IPO price band has been set at ₹79- ₹84 per equity share, with a face value of ₹10 per share. The Hero Motors IPO IPO lot size is 178 equity shares, and bids can be placed in multiples of 178 shares thereafter. Hero Motors IPO subscription for the public issue will open at 10:00 IST on Wednesday during the deals.

Hero Motors IPO GMP today is +19. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Hero Motors share price was indicated at ₹103 apiece, which is 22.62% higher than the IPO price of ₹84.

According to recent grey market activity over the past week, the IPO's Grey Market Premium (GMP) is showing an upward trend today, suggesting that there are optimistic expectations for a solid listing. Throughout this timeframe, experts noted that the GMP fluctuated between ₹8 and ₹24.

The Hero Motors IPO allotment basis is expected to be finalised on Monday, 21 September. The company is likely to begin processing refunds on Tuesday, 22 September, while shares are expected to be credited to the demat accounts of successful allottees on the same day.

Hero Motors share price is likely to be listed on both the BSE and NSE on Wednesday, 23 September.

Master Capital Services said the growing adoption of electric mobility is creating a new growth opportunity for Hero Motors. Electric two-wheeler volumes are expected to grow at a 40–42% CAGR to 7.5–8.5 lakh units by FY31, while electric bicycle volumes are projected to expand at a 19–23% CAGR. The electric-drive motor market is also expected to grow at a 28–32% CAGR through CY31.

The brokerage said Hero Motors is well positioned to benefit from these trends through its Powertrain Solutions and Alloys & Metallics (A&M) segments. Its Powertrain Solutions business, which includes Gears & Transmissions (G&T) and Bike Powertrain (BPT), has expertise across continuously variable transmissions, EV transmissions, electric motors, integrated drive units and gear sets, providing exposure to both ICE and EV platforms. Its first-mover advantage in e-bike powertrains further strengthens its positioning in the growing electric mobility segment. Master Capital Services views the IPO as a potential long-term investment opportunity.

Meanwhile, Swastika Investmart highlighted Hero Motors' position as a leading powertrain provider, with a first-mover advantage in global e-bike CVT hubs. However, it noted that the IPO valuation of around 69–74x P/E is significantly higher than the peer average of 50.2x, leaving limited upside cushion.

Swastika Investmart also noted that RoNW has improved to 8.53% and EBITDA margin to around 10.2%, although both remain below those of key peers. The brokerage flagged customer concentration as another risk, with the top 10 customers accounting for around 73–78% of revenue.

Swastika Investmart has a Neutral view on the IPO, citing the company's strong business prospects and EV growth potential, while cautioning that the high valuation limits the upside cushion.

The Hero Motors IPO comprises a fresh issue of shares worth ₹600 crore and an Offer for Sale (OFS) of ₹400 crore.

At the upper end of the price band, the company will have a market capitalisation of ₹3,815 crore. Following the OFS, promoter holding is expected to decline to 61.63% from 85.57%.

The company plans to utilise the proceeds from the fresh issue to repay debt and purchase equipment to expand its manufacturing facility in Uttar Pradesh.

ICICI Securities, DAM Capital and JM Financial are the book-running lead managers for the IPO, while Kfin Technologies is the registrar.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

Dhanya Nagasundaram works as a Content Producer at LiveMint, specializing in news related to financial markets, stocks, and business. With over eight years of experience in journalism and content creation, she has honed her skills in data-driven reporting and market analysis. Her focus is on monitoring stock trends, initial public offerings (IPOs), corporate news, policy shifts, and larger economic trends that affect investors and market players. At LiveMint, Dhanya consistently writes and produces articles that make complex financial topics accessible to readers. She keeps a close eye on equity markets, commodities, and macroeconomic indicators, assisting audiences in comprehending how global and domestic events influence investment perspectives. Her stories frequently underscore emerging trends within sectors, the IPO market, company earnings results, and market strategies pertinent to both retail and institutional investors. Before her tenure at LiveMint, Dhanya accumulated a wealth of professional experience at various companies, including MintGenie, Informist, Cogenics, Chary Publications, KPMG, and the Royal Bank of Scotland. These positions allowed her to establish a solid foundation in financial research, reporting, and content creation. Throughout her career, she has explored numerous subjects such as trading strategies, commodities, IPOs, wealth generation, corporate profits, and macroeconomic indicators. Her background in both financial journalism and corporate settings has given her the ability to tackle stories with analytical rigor while ensuring clarity for her audience. Through her contributions, Dhanya strives to deliver insightful, trustworthy, and investor-centric financial content.

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