UpcomingMainboardAuto Components / Engineering · Electric Vehicle Components & Drive Systems
Hero Motors
HEROMOTTEMP
Price Band: —
Min. Investment: Not disclosed (DRHP stage)
Issue Size: ₹900 Cr
About the Company
What does this company do?
Hero Motors Limited is an auto components and engineering company promoted by the Munjal family, best known for the Hero brand in the bicycle and two-wheeler ecosystem. The company manufactures motors and drive systems, with subsidiaries including Hewland Engineering Limited (UK) and HYM Drive Systems Private Limited.…
IPO Details
Issue parameters, key dates and structure.
Total Issue Size
₹900 Cr
Fresh Issue
₹500 Cr
Proceeds go to company
OFS
₹400 Cr (note: OFS proceeds go to selling shareholders, not the company)
Proceeds to selling shareholders
Products & Brands
Key offerings and brand portfolio of the company.
Motors & Drive Systems: Electric and conventional motor and drive system components for automotive applications, including for electric vehicles.
Financial Performance
P&L, Balance Sheet and Cash Flow — all figures in ₹ Crores.
| Particulars (₹ Cr) | FY2024 | FY2023 | FY2022 |
|---|
All figures in ₹ Crores (INR). Data sourced from DRHP/RHP.
Key Financial Ratios
Valuation and profitability metrics at the IPO price.
EPS (₹)
—
Not disclosed in DRHP extract
P/E Ratio
—
Price band not yet disclosed
RoNW (%)
—
Not disclosed in DRHP extract
NAV per Share (₹)
—
Not disclosed in DRHP extract
Debt/Equity
—
Not disclosed in DRHP extract
EBITDA Margin (%)
—
Not disclosed in DRHP extract
PAT Margin (%)
—
Not disclosed in DRHP extract
Revenue Growth YoY
—
Not disclosed in DRHP extract
Objectives of the Issue
How the company intends to use the IPO proceeds.
⚠
OFS Note: ₹400 Cr of OFS proceeds will go directly to selling shareholders (O P Munjal Holdings – ₹250 Cr, Bhagyoday Investments Private Limited – ₹75 Cr, Hero Cycles Limited – ₹75 Cr) and will NOT be received by the company.
1
Fresh Issue proceeds of ₹500 Cr to be used by the company for business purposes including general corporate purposes.
2
Pre-IPO placement of up to ₹100 Cr may be considered prior to filing the RHP; if completed, the amount will be reduced from the General Corporate Purposes portion of the Fresh Issue.
SWOT Analysis
Internal strengths & weaknesses; external opportunities & threats.
💪Strengths
Backed by the reputed Munjal family / Hero brand with decades of industrial credibility
Diversified auto components portfolio spanning conventional and EV segments
International subsidiary (Hewland Engineering, UK) providing technology and global market access
Experienced management team led by CEO Amit Gupta and strong promoter oversight
⚠️Weaknesses
No prior listed history, limiting price discovery and investor familiarity
Promoter-group entities offloading shares via OFS may raise concerns about insider confidence
Weighted average cost of acquisition for some selling shareholders is very low (₹0.03–₹10.07), suggesting high dilution risk perception
Financial details not fully disclosed in the DRHP extract, limiting transparency at this stage
🚀Opportunities
Rapid growth of India's electric vehicle market creating demand for EV drive systems and motors
Government push for domestic auto component manufacturing under PLI and Make-in-India schemes
Export opportunities leveraging Hewland Engineering's UK presence and global OEM relationships
Increasing premiumisation and technology upgrade cycle in the Indian automotive sector
🔥Threats
Intense competition from global and domestic auto component players
Technology disruption risk as EVs replace ICE vehicles faster than anticipated
Macroeconomic slowdown impacting auto sector volumes and margins
Currency fluctuations affecting international subsidiary revenues and profitability
Competitive Strengths
Key advantages highlighted in the DRHP.
✓
Strong brand association with the renowned Hero/Munjal family, one of India's most respected industrial groups
✓
Diversified product portfolio across conventional and electric vehicle drive systems and components
✓
Presence through subsidiaries including Hewland Engineering Limited, a UK-based engineering company
✓
Established manufacturing and R&D capabilities supporting multiple verticals
✓
Experienced promoter and management team with decades of industry expertise
✓
Access to a large and growing domestic and global auto components market
Promoters & Shareholding
Pre & post-IPO shareholding pattern. Click a promoter card to learn more.
Promoters
Shareholding Pattern
PrePost
Key Risks
Material risk factors to consider before applying.
⚠
Being the first public issue, there is no formal market for the equity shares and post-listing price is uncertain
⚠
Significant dependence on the automotive sector, which is cyclical and sensitive to macroeconomic conditions
⚠
Competition from established domestic and international auto component manufacturers
⚠
Risks associated with transition to electric vehicles and technology disruption in the auto sector
⚠
Promoter and promoter group entities are selling shareholders, which may signal partial exit concerns
⚠
Currency and geopolitical risks given international subsidiary operations (Hewland Engineering, UK)
◆ Neutral
Should You Apply?
Hero Motors Limited is an auto components and engineering company backed by the reputed Munjal family, with a diversified portfolio spanning conventional and electric vehicle drive systems. The company is raising ₹900 Cr through its IPO, comprising a ₹500 Cr fresh issue for business growth and a ₹400 Cr OFS by promoter and promoter-group entities. Financial details are not fully disclosed in this DRHP extract, making valuation assessment difficult at this stage. The presence of OFS by promoters at very low historical acquisition costs warrants scrutiny, though the long-term EV growth opportunity and brand strength are positives. Investors should await the final RHP with complete financial disclosures and price band before making an investment decision.
⚠️ This is not investment advice. CheckIPO provides information for educational purposes only. Always consult a SEBI-registered financial advisor before investing.
Lead Managers & Registrar
Institutions managing the issue and handling allotment.
Book Running Lead Managers (3)
ICICI Securities
DAM Capital
JM Financial
Registrar to the Issue
📋
KFin Technologies Limited
Registrar to the Issue