Hero Motors IPO: Five Risks Before the Rs 1,000-Crore Issue

Hero Motors wants to sell shares to the public in an IPO worth Rs 1,000 crore.

The company will use a portion of the IPO to raise new money, while its promoters will sell some existing shares.

Investors should know that much of Hero Motors’ revenue comes from a small group of customers.

Losing an important customer could therefore hurt the company’s sales and cash flow.

Several subsidiaries reported losses in FY26.

The company also has regulatory, civil, and tax proceedings pending.

One promoter entity is under an insolvency process, and another promoter group member faces an insolvency case.

Hero Motors also depends on a limited number of suppliers and does not have definitive agreements with all of them.

Investors must weigh these risks before deciding whether to apply.