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Learn about Hero Motors’ Draft Red Herring Prospectus (DRHP) filing, business operations, financial context, and the proposed utilisation of funds as outlined in public disclosures.
Hero Motors has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) as part of its plan to raise capital through an initial public offering. The DRHP outlines the company’s business profile, manufacturing operations, financial context, and the broad structure of the proposed public issue.
The DRHP provides an overview of the proposed IPO and sets out the company’s financials, governance framework, and business outlook.
Hero Motors filed its Draft Red Herring Prospectus with SEBI in July 2025, marking the formal initiation of its IPO process. The filing is currently under regulatory review, following which SEBI observations and approvals will determine the next stages, including the publication of the Red Herring Prospectus (RHP) and announcement of issue dates.
The equity shares are proposed to be listed on recognised stock exchanges in India, subject to regulatory clearances.
As per the DRHP, the proposed IPO is expected to comprise the following components:
| Particulars | Details |
|---|---|
Issue Type |
Combination of Fresh Issue of Equity Shares and Offer for Sale (OFS) |
Fresh Issue |
Capital raised to be utilised by the company |
Offer for Sale |
Partial exit by existing shareholders |
Face Value |
To be disclosed in RHP |
Issue Size |
To be finalised post price discovery |
Proposed Listing |
NSE and BSE |
Price Band |
To be announced in RHP |
Issue Process |
Book-built issue |
These details reflect indicative disclosures available at the DRHP stage and are subject to change based on SEBI observations and final approvals.
Hero Motors operates in the automotive manufacturing sector, focusing on the design, manufacturing, and distribution of two-wheelers and three-wheelers across consumer and commercial transportation segments in India.
The company manufactures motorcycles, scooters, mopeds, and three-wheelers designed for diverse use cases including personal mobility, commercial delivery, and industrial applications. Hero Motors operates manufacturing facilities equipped with advanced production technology, assembly lines, and quality control systems.
Its business model is supported by:
An extensive dealer and distribution network across India
In-house research and development capabilities
Compliance with automotive safety, emission, and regulatory standards
Hero Motors’ market positioning is driven by rising demand for affordable personal mobility, growth in commercial delivery services, and increasing transportation needs in semi-urban and rural regions.
According to the DRHP, the proceeds from the fresh issue are proposed to be utilised towards the following broad objectives:
| Objective | Purpose / Use of Proceeds |
|---|---|
Capital Expenditure |
Expansion of manufacturing facilities, production equipment, assembly lines, and testing infrastructure |
Research & Development |
Development of new two-wheeler and three-wheeler models, engine and powertrain technology, and exploration of alternative fuel and EV platforms |
Working Capital |
Inventory management, raw material procurement, and operational expenses |
Debt Repayment |
Partial repayment to optimise capital structure |
General Corporate Purposes |
Administrative and strategic requirements |
The offer for sale component will provide liquidity to existing shareholders while maintaining operational continuity.
The DRHP provides an overview of Hero Motors’ financial performance, reflecting its operational scale in the automotive manufacturing sector.
| Fiscal Year / Period | Revenue | EBITDA | Profit After Tax |
|---|---|---|---|
FY24 |
As per DRHP |
As per DRHP |
As per DRHP |
FY25 |
As per DRHP |
As per DRHP |
As per DRHP |
H1 FY26 |
As per DRHP |
As per DRHP |
As per DRHP |
*Detailed year-wise financial statements, including audited figures, are available in the DRHP and should be referred to for complete financial information.
The table below summarises the current status of the IPO process based on publicly available information:
| Milestone / Stage | Date (or Status) | Details |
|---|---|---|
DRHP filed with SEBI |
July 2025 |
Draft Red Herring Prospectus submitted for regulatory review |
SEBI observations /approval |
September 2025 |
SEBI has granted regulatory approval for the IPO to proceed. |
Red Herring Prospectus (RHP) |
To be filed |
RHP and price band will be announced after regulatory approval |
IPO Opening Date |
To be announced |
Final dates awaited |
IPO Closing Date |
To be announced |
Will be declared in RHP |
Allotment Date |
To be announced |
Post IPO closure |
Listing on NSE/BSE |
To be announced |
Post allotment and listing formalities |
Note: Investors should refer to official filings for final IPO dates to learn more about Hero Motors IPO listing details and price, and listing timelines.
This content is for informational purposes only and the same should not be construed as investment advice. Bajaj Finserv Direct Limited shall not be liable or responsible for any investment decision that you may take based on this content.
Sources
LiveMint — IPO News and Updates, https://www.livemint.com/market/ipo
Economic Times — IPO News: Latest IPO News, Upcoming IPO, https://economictimes.indiatimes.com/markets/ipo
Financial Express — IPO News, https://www.financialexpress.com/market/ipo-news/
NDTV Profit — IPOs, https://www.ndtvprofit.com/ipos
Business Today — IPO Corner: Latest IPO News & Analysis, https://www.businesstoday.in/markets/ipo-corner
Hero Motors filed its Draft Red Herring Prospectus with the Securities and Exchange Board of India in July 2025, formally initiating the regulatory process for its initial public offering to raise capital from public markets.
The Hero Motors IPO has moved past regulatory review and has received SEBI approval. Next steps include filing the final Red Herring Prospectus with the price band and announcing IPO subscription dates.
The Hero Motors IPO comprises a fresh issue of equity shares along with an offer for sale by existing shareholders, with the final issue size and pricing details to be disclosed in the Red Herring Prospectus.
Subject to regulatory approvals, Hero Motors plans to list its equity shares on both the National Stock Exchange and the Bombay Stock Exchange, enabling investor participation and liquidity in the secondary market.
Hero Motors intends to utilise proceeds from the fresh issue for expanding manufacturing capacity, investing in research and development, meeting working capital requirements, repaying partial debt, and supporting general corporate purposes.
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