Hero Motors share price jumped more than 7% on Wednesday, 30 September, extending gains in the newly listed stock. The shares were trading around 78% above their IPO price of ₹84. The company’s market capitalisation stood at ₹6,675.61 crore so far today. Hero Motors share price today opened at ₹140.30 apiece on the BSE, the stock touched an intraday high of ₹149.35, and an intraday low of ₹140.10 apiece.
Hero Motors share price also attracted attention following a bulk deal on Monday, 28 September. Data from the BSE showed Irage Broking Services LLP bought 34,01,332 shares at ₹135.70 apiece and sold 12,12,381 shares at ₹134.93 apiece.
Hero Motors made a muted debut on 23 September, with the stock opening at ₹82.10 on the BSE, a 2.26% discount to its issue price of ₹84. It later recovered sharply and ended the session 17.27% higher at ₹98.51.
On the NSE, the stock opened at ₹82, down 2.38% from the issue price, before ending at ₹98.40, up 17.14%.
Hero Motors IPO subscribed 6.66 times
The company’s ₹1,000-crore initial public offering (IPO) was subscribed 6.66 times on the final day of bidding. The issue had a price band of ₹79–84 per equity share.
The mainboard IPO comprised a fresh issue of shares worth up to ₹600 crore and an offer for sale (OFS) of up to ₹400 crore.
Of the fresh issue proceeds, ₹190 crore is proposed to be used for repayment or pre-payment of certain outstanding borrowings, while ₹200 crore will be used to purchase equipment for capacity expansion at the company’s facility in Gautam Buddha Nagar, Uttar Pradesh.
The remaining funds are earmarked for inorganic growth through unidentified acquisitions and other strategic initiatives, along with general corporate purposes.
Hero Motors caters to global auto OEMs
Hero Motors is an automotive technology company engaged in designing, developing, manufacturing and supplying engineered powertrain solutions to automotive original equipment manufacturers (OEMs) across the US, Europe, India and the ASEAN region.
Its customer base includes global companies such as BMW AG, Ducati Motor Holding SPA, Enviolo International Inc, Formula Motorsport Ltd and Hummingbird EV.
Hero Motors post-listing outlook: Here’s what experts say
Hero Motors’ strong business prospects and exposure to the growing electric vehicle (EV) market have drawn attention following its stock market debut. However, experts point to valuation, profitability and near-term price stability as key factors investors should watch.
Dr. Ravi Singh, Chief Research Officer at Master Capital Services, said Hero Motors is a leading Indian automotive technology player focused on designing, developing and manufacturing engineered powertrain solutions for global OEMs across the US, Europe, India and ASEAN. Its portfolio spans EVs, internal combustion engine (ICE) and hybrid vehicles, catering to two-wheelers, e-bikes, performance vehicles, off-road vehicles, heavy-duty vehicles and electric vertical take-off and landing (eVTOL) vehicles.
The company operates through its Powertrain Solutions and Alloys & Metallics (A&M) businesses. Its Powertrain Solutions segment includes Gears & Transmissions (G&T) and Bike Powertrain (BPT), with expertise in continuously variable transmissions (CVTs), EV transmissions, electric motors, integrated drive units (IDUs) and gear sets. Singh also highlighted the company’s first-mover advantage in e-bike powertrains.
EV growth offers long-term opportunity, but near-term sentiment remains weak
Singh noted that India’s two-wheeler industry is projected to grow at a 6–7% CAGR to 29–31 million units by FY31, while the gears and transmissions market is expected to expand at 6–8% CAGR between CY25 and CY31. Meanwhile, the electric-drive motor market is projected to grow at a much faster 28–32% CAGR through CY31.
However, he cautioned that the stock’s weak listing could keep near-term sentiment under pressure, potentially prompting fresh investors to wait for greater price stability. According to Singh, the longer-term outlook will depend on the company’s ability to sustain growth, improve profitability and strengthen cash generation.
Valuation remains a key concern, says Swastika Investmart
Shivani Nyati, Head of Wealth at Swastika Investmart, said the company benefits from its strong position in powertrain solutions and the growth potential of EVs. However, she pointed to the stock’s valuation of around 69–74x P/E, which is significantly higher than the peer average of 50.2x.
While Hero Motors’ RoNW has improved to 8.53% and EBITDA margin to around 10.2%, Nyati noted that both metrics remain below those of key peers. She also flagged high customer concentration as an additional risk.
Given the company’s strong business prospects but limited valuation cushion, Nyati’s post-listing view is Neutral. She suggested that investors could wait for better valuations or price consolidation before considering fresh positions.
Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
About The Author
