Opens in 5 daysMainboardAutomobile Two & Three Wheelers
Hero Motors IPO
Hero Motors IPO is a mainboard IPO raising ₹1,000 Cr at ₹79 – ₹84 a share. The smallest application you can make is 178 shares, costing ₹14,952 at the top of the band. Bidding opens on 16 Sept 2026.
Bidding has not opened yet, so there is nothing to subscribe to.
populated partly populated we hold nothing here — the tab says why
What the prospectus says could go wrong
Read from the 582-page prospectus. Indian prospectuses list hundreds of risk factors, most of them generic boilerplate. These are the 13 specific to this company; 645 generic ones were skipped. Every one is quoted verbatim with its page, so you can check it against the document.
Severeconcentrationpage 29
Top customer concentration — 72.89% from top 10, 35.57% from top one
In Fiscals 2026, 2025 and 2024 our revenue from operations from top 10 customers was ₹ 8,661.40 million, ₹ 8,501.96 million and ₹ 8,191.86 million, representing 72.89%, 78.03% and 76.96% of our revenue from operations, respectively ... Top One Customer 4,227.44 35.57% ... Our top 10 customers include River Mobility Private Limited, Hero MotoCorp Limited, BMW-AG, enviolo, HMC E Valley, Makino Auto Industries Private Limited and Ducati
Severeregulatorypage 31
Shared 'Hero' trademark use contingent on family retaining 26% stake
we share the trademark and name 'Hero' with other entities within the Munjal group ... our Promoter, Pankaj Munjal's family has the right to use the trademark and name 'Hero' in relation to the business undertaken by our Company only as long as minimum 26% of our shareholding is owned by Pankaj Munjal's family
Severeregulatorypage 50
Unable to locate corporate and secretarial records dating back to 1998
We have been unable to locate the following secretarial records: (i) shareholders' resolution and Form 23 for allotment of 12,713,905 Equity Shares... (ii) Form 21 and Form 23 filed for allotment of 35,000,000 Equity Shares... offer documents and terms of issue for preferential issue/private placement... board resolution for the issuance of 495,000,000 Preference Shares
Severeoperationalpage 58
Severe under-utilisation at HYM, Spur and Thailand facilities
capacity utilization of our HYM facility was 14.56% and 5.90% while Spur facility was 50.29% and 45.43%% in Fiscal 2026 and 2025 on account of subdued demand for the products it manufacturers for the customers
Severepromoterpage 65
Promoters acquired Equity Shares at near-zero cost vs Offer Price
The average cost of acquisition of Equity Shares for our Promoters and Selling Shareholders may be lower than the Offer Price... O P Munjal Holdings... 273,123,055... 0.03... Pankaj Munjal... 0.04
Highlitigationpage 31
UP Pollution Control Board criminal complaint against Company and Directors
the Uttar Pradesh Pollution Control Board has filed a criminal complaint dated October 23, 2018 before the Special Court of Judicial Magistrate (Water and Air Pollution Control), Lucknow against our Company, our Directors, Pankaj Munjal and Pratibha Goyal, and certain erstwhile directors of our Company
Highconcentrationpage 37
Heavy revenue concentration on UK Material Subsidiary Hewland
We derive a certain portion of our revenue from operations from our Material Subsidiary, Hewland Engineering Limited (HEL)...Our Company acquired 32% equity stake in HEL in September 2022...and we acquired a majority stake by acquiring 19% equity stake in February 2023...contributed 11.35% to 14.73% of consolidated revenue
Highfinancialpage 39
Large contingent guarantees of ₹1,574.62mn for four Subsidiaries
As of July 31, 2026, our Company has provided ₹ 1,574.62 million of guarantee and standby letters of credit to finance long term loan and working capital facilities for four of our Subsidiaries, namely Hero Motors Thai Limited, Hewland Engineering Limited, STPL and Hero Edu
Highoperationalpage 39
Aggressive acquisition and JV strategy with material integration risk
We have in the past acquired a strategic stake of 32.00% in HEL in Fiscal 2023 and an additional 19.00% stake...joint venture with Yamaha...HYM Drive Systems...acquired Spur Technologies Private Limited...Munjal STP Industries Private Limited (51%)...Any future acquisitions or joint developments may expose us to new operational, regulatory, market and geographic risks
Highpromoterpage 41
Significant related-party land purchase from promoter-linked Hero Cycles
Purchase of Mangli land by our Company situated in Ludhiana, Punjab from Hero Cycles Limited, in which our Directors Pankaj Munjal and Abhishek Munjal are directors...₹ 205.38 million paid to Hero Cycles Limited...Certain portion of the Mangli land is yet to be sold by HCL to our Company and a sum of 22.82 million is yet to be paid
Pankaj Munjal, Promoter and Director of our Company, is currently involved in litigation in relation to the manner of usage and assignment of "HERO" formative marks and the "H" Monogram
Highfinancialpage 45
High indebtedness with 41.87% of borrowings payable on demand
our outstanding long-term debt was ₹ 987.69 million and short-term debt was ₹ 3,020.20 million while our debt-to-equity ratio was 0.83... our total outstanding borrowings payable on demand was ₹ 1,787.74 million which represented 41.87% our total outstanding borrowings
Highfinancialpage 34
Multiple loss-making Subsidiaries with ₹1,258.77mn invested
Our Company as of March 31, 2026, has invested ₹ 1,258.77 million into our Subsidiaries ... Hero Motors Thai Limited (66.71) ... HYM Drive Systems Private Limited (49.11) ... Hewland Engineering Ltd (37.42)
Extracted from the issuer’s own prospectus and ranked by how specific and material each risk is to this company. Severity is our assessment of the disclosure, not a prediction — and nothing here is a recommendation to apply to this issue.
What’s in court
The issuer’s own summary of outstanding legal proceedings — SEBI requires this table in every prospectus. Counts and amounts are as disclosed; the disclosed aggregate at stake is ₹0.2 Cr.
Against
Criminal
Tax
Other material
Amount at stake
The company
2
1
18
₹0.2 Cr
Directors
1
0
1
₹0.0 Cr
Promoters
1
0
3
₹0.0 Cr
Subsidiaries
0
1
0
₹0.0 Cr
case₹1.9 Crpage 487
PSPCL penalty of ₹18.76 million imposed on Hero Cycles Limited (property subsequently transferred to Company) for alleged unauthorised use of electricity; PSPCL appeal pending before Punjab & Haryana High Court
case₹0.1 Crpage 487
CPCB show cause notice (Dec 30, 2024) to Company alleging non-compliance of Plastic Waste Management Rules, 2016, with environmental compensation of ₹1.17 million for Fiscals 2023 & 2024; Company replied on Jan 16, 2025
casepage 484
UPPCB criminal complaint (Oct 23, 2018) against Company and Directors Pankaj Munjal & Pratibha Goyal under Section 43 of Water Act for alleged discharge of untreated effluent; Section 482 CrPC quashing petitions pending before Allahabad High Court
casepage 488
Vijay Kumar Munjal vs Pankaj Munjal (Promoter) — Section 34 Arbitration & Conciliation Act petition before Delhi HC challenging arbitral award dated Dec 18, 2018 concerning HERO trademark / IP Agreements
casepage 488
Hero Ecotech Limited vs Pankaj Munjal (Promoter), Hero Cycle Limited and others — Section 37 Arbitration Act application before Patna HC seeking reference of HERO trademark title suit to arbitration
Original amounts were stated in ₹ million; converted to ₹ crore (1 crore = 10 million, so ₹ million ÷ 10 = ₹ crore). Counts combine 'by' and 'against' rows. 'Other' bucket aggregates Statutory/Regulatory proceedings + Material Civil Litigations (Disciplinary column is marked NA for non-promoters and explicitly Nil for Promoters). No quantified aggregate amount was disclosed for Directors, Promoters, KMP or Senior Management. Group Companies: no separate proceedings disclosed other than those already listed under Promoters' material civil litigation (per page 490). Materiality Threshold adopted by Board: ₹15.16 million (5% of avg absolute PAT for Fiscals 2026/2025/2024).. Outstanding means unresolved — a listed case is an exposure, not a verdict.
Source documents
What the issuer and the exchanges published. Everything else on this tab is read out of these.
