Hero Motors Ltd has raised ₹299.99 crore from anchor investors ahead of the opening of its initial public offering (IPO) on Wednesday, September 16. The automotive technology and powertrain solutions provider allocated 3,57,14,284 equity shares at ₹84 per share to anchor investors.
The anchor allocation included institutions such as ICICI Prudential Life Insurance Company Ltd, 3P India Equity Fund 1M, Edelweiss Life Insurance Company Ltd, Societe Generale – ODI and ASAS Global Fund Incorporated VCC Sub Fund.
Among equity-oriented schemes, shares were allocated to ICICI Prudential Smallcap Fund, Kotak Mahindra Trustee Co Ltd A/C Kotak MNC Fund and JM Financial Mutual Fund – JM Flexi Cap Fund, among others.
Of the total 3,57,14,284 shares allocated to anchor investors, 2,91,64,441 shares were allotted to seven domestic mutual funds through 16 schemes, according to the company.
Hero Motors has fixed the IPO price band at ₹79-₹84 per equity share, with each share having a face value of ₹10. The IPO will remain open from September 16 to September 18, 2026.
Investors can bid for a minimum of 178 shares and in multiples of 178 thereafter. The IPO comprises a fresh issue of up to ₹600 crore and an offer for sale (OFS) of shares worth up to ₹400 crore by promoters O P Munjal Holdings and Hero Cycles Ltd.
Of the fresh issue proceeds, ₹190 crore will be used for the repayment, prepayment or redemption of certain outstanding borrowings. Another ₹200 crore will be allocated towards capital expenditure, including the purchase of equipment for capacity expansion at the company’s facility in Gautam Buddha Nagar, Uttar Pradesh. The remaining proceeds will be used for unidentified acquisitions, other strategic initiatives and general corporate purposes.
The IPO is being conducted through the book-building process in accordance with SEBI ICDR Regulations. Up to 50% of the net offer will be available for allocation to qualified institutional buyers (QIBs), at least 15% to non-institutional investors (NIIs), and at least 35% to retail individual investors (RIIs).
ICICI Securities Ltd, DAM Capital Advisors Ltd and JM Financial Ltd are the book-running lead managers for the issue, while KFin Technologies Ltd is the registrar. The equity shares are proposed to be listed on the NSE and BSE.
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