The Hero Motors IPO opened for subscription on Wednesday, September 16, with the issue attracting attention from investors as its grey market premium (GMP) continues to indicate a premium over the upper end of the IPO price band.
The latest Hero Motors IPO GMP stands at ₹19, according to the data available on September 16 at 9:58 AM. With the IPO price band fixed at ₹79-₹84 per share, the current GMP indicates an estimated listing price of around ₹103, representing a potential premium of 22.62% over the upper price band.
However, the latest GMP also shows some cooling in grey-market sentiment. The premium has declined from ₹24 on September 12 and 13 to ₹23 on September 14 and ₹19 on September 15 and September 16.
Despite this decline, the Hero Motors IPO GMP remains substantially higher than the ₹8-₹10 levels recorded earlier in the week.
The latest Hero Motors IPO GMP is ₹19.
At the upper IPO price band of ₹84, the calculation gives an estimated listing price of:
₹84 + ₹19 = ₹103
This implies a potential listing premium of approximately 22.62% over the IPO’s upper price band.
For the IPO’s lot size of 178 shares, the current GMP translates into an indicative gain of approximately ₹3,382 per lot, if the grey-market indication were to translate directly into the listing price.
However, GMP is an unofficial indicator and does not guarantee the actual listing price.
The grey-market premium has shown considerable movement in the days leading up to the IPO opening.
The GMP stood at just ₹8 on September 10. It increased to ₹10 on September 11 before jumping to ₹24 on September 12.
The premium remained at ₹24 on September 13 and then slipped to ₹23 on September 14. It fell further to ₹19 on September 15 and remained at ₹19 when the IPO opened on September 16.
| Date | GMP | Estimated Listing Price | Implied Premium |
|---|---|---|---|
| Sep 10 | ₹8 | ₹92 | 9.52% |
| Sep 11 | ₹10 | ₹94 | 11.90% |
| Sep 12 | ₹24 | ₹108 | 28.57% |
| Sep 13 | ₹24 | ₹108 | 28.57% |
| Sep 14 | ₹23 | ₹107 | 27.38% |
| Sep 15 | ₹19 | ₹103 | 22.62% |
| Sep 16 | ₹19 | ₹103 | 22.62% |
One of the most notable developments in the Hero Motors IPO grey market has been the increase in GMP from ₹8 on September 10 to ₹19 on September 16.
That represents an increase of ₹11, or 137.5%, over the period.
The rise was particularly sharp between September 11 and September 12, when GMP jumped from ₹10 to ₹24.
However, the premium has subsequently moderated. From its recent high of ₹24, GMP has declined to ₹19, a fall of around 20.8%.
Therefore, the recent trend can broadly be divided into two phases: a sharp rise ahead of the IPO and a subsequent cooling as the issue opened.
The Hero Motors IPO opened for subscription on September 16 and will remain open until September 18, 2026.
The IPO has a price band of ₹79 to ₹84 per equity share, while the lot size is 178 shares.
At the upper price band, retail investors need a minimum investment of ₹14,952 for one lot.
The IPO is a combination of a fresh issue and an Offer for Sale.
The company is raising up to ₹600 crore through the fresh issue and existing shareholders are offering shares worth up to ₹400 crore through the OFS, taking the total issue size to ₹1,000 crore.
The IPO opened on September 16, and the issue had recorded 0.08x subscription at around 9:58 AM, according to the data provided.
Since this is only the initial period of the first day, the subscription figure can change substantially during the remainder of the bidding period.
Investors will therefore be watching the subscription trend across retail, non-institutional and institutional categories as the issue progresses.
At the current GMP of ₹19, the estimated listing price stands at ₹103.
This is calculated by adding the latest GMP to the upper price band:
₹84 + ₹19 = ₹103
The estimated premium is therefore:
₹19 ÷ ₹84 × 100 = 22.62%
The implied listing price has also moved with the GMP.
When the GMP was ₹24, the estimated listing price was ₹108, implying a 28.57% premium. With the GMP now at ₹19, the implied listing price has fallen to ₹103.
This five-rupee change in GMP translates into a ₹5 change in the estimated listing price.
Hero Motors Limited is an automotive technology company that designs, develops, manufactures and supplies powertrain solutions to automotive original equipment manufacturers across the US, Europe, India and ASEAN markets.
Its product portfolio includes solutions for electric and non-electric powertrains, two-wheelers, e-bikes, performance automotive, off-road vehicles, electric and hybrid cars and heavy-duty vehicles.
The company operates through its Powertrain Solutions and Alloys and Metallics segments.
Hero Motors also has a presence in the global e-bike powertrain market and counts companies including BMW, Ducati, enviolo, Formula Motorsport, Hummingbird EV and HWA among its global customers.
The company’s financial numbers have also shown growth in recent years.
Hero Motors reported total income of ₹1,216.74 crore in FY26, compared with ₹1,111.23 crore in FY25.
Profit after tax increased to ₹41.17 crore in FY26 from ₹32.80 crore in FY25.
That represents a year-on-year increase of approximately 26% in PAT, while revenue increased by around 9% during the same period.
EBITDA also increased from ₹114 crore in FY25 to ₹147.78 crore in FY26.
However, the company’s IPO valuation remains an important consideration. Based on the figures provided, the post-issue P/E at the offer price is around 92.31x, while the post-issue price-to-book value is around 6.60x.
The fresh issue proceeds will be used for several purposes.
The company plans to utilise approximately ₹190 crore towards repayment, prepayment or redemption of certain outstanding borrowings.
Another ₹200 crore is proposed to be used for capital expenditure, including the purchase of equipment for capacity expansion at the company’s Gautam Buddha Nagar facility in Uttar Pradesh.
The remaining proceeds are intended for inorganic growth through unidentified acquisitions and other strategic initiatives, along with general corporate purposes.
| Event | Date |
|---|---|
| IPO Opens | September 16, 2026 |
| IPO Closes | September 18, 2026 |
| Allotment | September 21, 2026 |
| Refund | September 22, 2026 |
| Credit of Shares | September 22, 2026 |
| Listing | September 23, 2026 |
| Price Band | ₹79-₹84 |
| Lot Size | 178 shares |
| Issue Size | ₹1,000 crore |
| Fresh Issue | ₹600 crore |
| OFS | ₹400 crore |
With the IPO now open, the GMP trend will be closely watched alongside actual subscription numbers.
The current ₹19 GMP indicates that grey-market participants are still pricing in a premium, but the fall from ₹24 shows that the premium has moderated.
The key question is whether the GMP stabilises around ₹19 or begins moving higher or lower as subscription data builds.
Investors should also watch the response from institutional and non-institutional investors, as stronger demand during the remaining bidding sessions could influence overall market sentiment.
Disclaimer – The stock/s and indices mentioned in this article are discussed solely for informational and educational purposes. It should not be construed as investment advice or a recommendation to buy or sell any securities. Investors should conduct their own research or consult a financial advisor before making any investment decisions. Investments in securities markets are subject to market risks. Read all the related documents carefully before investing
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