Hero Motors seeks 73 times earnings on a three-year average return on net worth of 7.58 percent

Hero Motors will open its initial public offering on 16 September at a price band of INR 79 to INR 84 per share of face value INR 10, closing on 18 September with listing expected on 23 September. The offer totals INR 1,000 crore, of which INR 600 crore is a fresh issue and INR 400 crore an offer for sale by the promoters O P Munjal Holdings and Hero Cycles. Fresh issue is 60 percent of the offer, so most of the money reaches the company. The minimum bid is 178 shares.

The size has moved twice. Hero Motors first filed for INR 900 crore in August 2024, with a fresh issue of INR 500 crore. It refiled in June 2025 for INR 1,200 crore, raising the fresh issue to INR 800 crore. The final offer cuts that back to INR 600 crore, a reduction of a quarter from the draft, while the offer for sale has stayed at INR 400 crore throughout. The proposed debt repayment has fallen with it, from INR 285 crore in the 2025 draft to INR 190 crore now, and the capital expenditure earmarked for the Gautam Buddha Nagar plant from INR 237 crore to INR 200 crore.

That leaves about INR 210 crore of the fresh issue, or 35 percent of it, for unidentified acquisitions, strategic initiatives and general corporate purposes. Under the SEBI ICDR Regulations that combined head cannot exceed 35 percent of the issue, so the residual sits at the regulatory ceiling.

At the upper band the offer values Hero Motors at INR 3,815 crore, a price-to-earnings multiple of 73.68 times diluted FY26 earnings, against 69.30 times at the floor. Those multiples imply FY26 profit after tax of roughly INR 52 crore, and both ends of the band give the same answer. The company's three-year weighted average return on net worth is 7.58 percent. Promoter holding falls to 61.63 percent from 85.57 percent after the offer.

The company designs and supplies powertrain systems for two-wheelers, e-bikes, performance and off-road vehicles, hybrids and eVTOL applications, and names BMW, Ducati, enviolo, Formula Motorsport, HWA and Hummingbird EV among its customers. Its claims to market leadership in the release are sourced to a CRISIL report, not to the company.

ICICI Securities, DAM Capital Advisors and JM Financial are the book running lead managers, and KFin Technologies the registrar.

The release carries no revenue, no profit and no direction for either, and does not state the valuation at the upper band or the return on net worth.