Hero Motors IPO Opens This Week With ₹1,000 Crore Target
· Business · LiveMint, Auto Express, Arab News
Hero Motors is launching its ₹1,000 crore initial public offering from Wednesday to Friday, setting a price band of ₹79-84 per share. The offer consists of a ₹600 crore fresh issue and a ₹400 crore offer for sale by promoters OP Munjal Holdings and Hero Cycles. Proceeds from the fresh issue will be used to repay ₹190 crore in debt and fund ₹200 crore in equipment expansion at the company's Gautam Buddha Nagar facility. While the company has seen e-mobility revenue grow from ₹128.1 crore in FY24 to ₹273.3 crore in FY26, it faces challenges regarding muted overall sales growth and underused manufacturing capacity. Net profit reached ₹41.2 crore in FY26, supported by a shift toward higher-margin powertrain components.
Why it matters
The IPO tests investor appetite for a company balancing rapid growth in its electric mobility segment against broader revenue stagnation and capital-intensive facility expansion. It provides a significant test for the automotive component sector's ability to pivot toward high-value EV technology.
Read the original report — LiveMint
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