1 hr ago
Hero Motors revives acquisition plans with IPO-funded technology expansion
Hero Motors makes technology and parts for vehicles.
The company wants to buy other businesses to grow faster.
It is especially interested in controllers, aviation powertrains and advanced machining.
These purchases could give Hero Motors new technology, customers and research abilities.
The company plans to raise ₹1,000 crore through an IPO.
It may use up to ₹150 crore of that money for acquisitions and other strategic plans.
It will also spend ₹200 crore expanding its own powertrain factory.
Company leaders have not named a target or promised when a deal will happen.
Hero Motors is considering acquisitions in controllers, aviation powertrains and high-end machining.
Up to ₹150 crore from its proposed ₹1,000-crore IPO may fund acquisitions and strategic initiatives.
The IPO includes a ₹600-crore fresh issue and a ₹400-crore offer for sale.
The company is also investing ₹200 crore to expand powertrain capacity in Gautam Buddha Nagar.
Industry sources expect a possible transaction after the IPO and before the end of 2026, though no target has been identified.
- Who
- Hero Motors, led by Chairman Pankaj Munjal and Managing Director and CEO Amit Gupta.
- What
- The company is reviving acquisition plans focused on technology, customers and market access.
- Where
- Potential targets may be in global markets; Hero Motors is expanding powertrain capacity in Gautam Buddha Nagar, India.
- When
- The plans were reported on September 10, 2026; an acquisition could occur after the IPO and before the end of 2026, according to industry sources.
- Why
- To obtain capabilities such as controllers, aviation powertrains, high-end machining, established customers and additional research and development capacity.
Key facts
- Proposed IPO size
- ₹1,000 crore
- IPO structure
- ₹600 crore fresh issue and ₹400 crore offer for sale
- Potential acquisition allocation
- Up to ₹150 crore from the fresh issue
- Debt repayment
- ₹190 crore
- Powertrain capacity investment
- ₹200 crore for equipment in Gautam Buddha Nagar
- Earlier investment
- Strategic stake in Hewland Engineering in 2021
- Earlier acquisition
- 100% of Spur Technologies from Hero Cycles in November 2023
Quotes
Amit Gupta
Managing Director and CEO of Hero Motors Ltd
“We are discussing at a board level… where should we move,”
thehindubusinessline.com
Sources
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