On Wednesday, Hero Motors Ltd. opened its ₹1,000‑crore IPO at ₹79‑84 per share, with anchor investors securing 3.57 crore equity shares at ₹84 each.
ICICI Prudential Life Insurance, 3P India Equity Fund 1M, Edelweiss Life Insurance, Societe Generale – ODI, and ASAS Global Fund were among the marquee names that filled the anchor book, signalling robust institutional confidence in the firm’s e‑mobility and German joint‑venture strategy.
At the top of the price band, the post‑issue P/E sits at 83.8x, starkly above the automotive‑tech sector average of roughly 45x, underscoring the premium valuation investors are willing to pay for the company’s projected growth.
Financials paint a picture of soaring profitability: FY24‑26 earnings‑before‑interest‑tax‑depreciation‑amortisation and profit after tax grew at 34.3% and 55.5% CAGR respectively, while revenue expanded modestly at 5.7% CAGR, reflecting a shift toward higher margin product lines.
The shares are currently trading 23% above the IPO price on the grey market, a clear signal that the market anticipates a strong first‑day gain, though such premiums are not guarantees of listing performance.
Proceeds will be earmarked for debt repayment (₹190 crore) and capacity expansion (₹200 crore), while management has reiterated its guidance for FY26, projecting continued margin expansion and incremental revenue from its expanding e‑mobility portfolio.