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Hero Motors IPO: Auto-component manufacturer Hero Motors has secured approval from the Securities and Exchange Board of India (SEBI) to launch its initial public offering (IPO), the company said in a regulatory filing on Monday.

The issue size has been pegged at Rs 1,200 crore, comprising a fresh issue of shares worth Rs 800 crore and an offer for sale (OFS) of Rs 400 crore.

Proceeds from the fresh issue will be used to repay Rs 285 crore of debt, invest Rs 237 crore in new equipment at the company’s Gautam Buddha Nagar plant, fund potential acquisitions and meet general corporate purposes.

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Under the OFS, OP Munjal Holdings will offload shares worth Rs 390 crore, while Bhagyoday Investments and Hero Cycles will each sell shares worth Rs 5 crore. The shares carry a face value of Rs 10 apiece. As per the prospectus, 50 per cent of the issue will be reserved for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors and 35 per cent for retail individual investors.

Hero Motors may also opt for a pre-IPO placement of up to Rs 160 crore, which would proportionally reduce the size of the fresh issue. ICICI Securities, DAM Capital Advisors and JM Financial are the book-running lead managers for the IPO, while KFin Technologies will act as registrar.

Led by Pankaj Munjal — a cousin of Hero MotoCorp chairman Pawan Munjal — Hero Motors had originally filed for a Rs 900-crore IPO in August 2024 before increasing the size to Rs 1,200 crore in its revised draft in July 2025. The company produces engine and transmission components for two-wheelers and supplies leading global brands including BMW, Ducati and Harley-Davidson.

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Senior Sub-editor at Zee Business English

shweta.shukla@India.com

Shweta Birendra Shukla is a journalist covering the stock market and corporate affairs, with prior stints at Business ...LATEST NEWSBy accepting cookies, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.