Hero Motors Unlisted Shares

Hero Motors Ltd.
INE012G01022
Listing Status: DRHP Filed

About Hero Motors Unlisted Shares
Overview of Hero Motors Unlisted Shares
Global Leader in Automotive Components and Solutions
Hero Motors Ltd. is a leading Indian manufacturer of automotive components, recognised globally for its innovation-driven approach and cost-effective technological solutions.
- As the automotive flagship of the Hero Group—one of the world’s largest two-wheeler and bicycle manufacturers—the company consistently delivers advanced, high-quality products to leading OEMs across various mobility segments in the United States, Europe, India and the Association of Southeast Asian Nations (“ ASEAN ”) region.
- HML specialises in advanced drivetrain technologies and mobility solutions.
- The company is recognised for its expertise in the development and production of continuously variable transmissions (CVT), Electric vehicle (EV) transmission systems, electric motors, integrated drive units (IDUs), and gear sets.
- According to a CRISIL report, Hero Motors holds a first-mover advantage in the global e-bike powertrain market and is the only company in India manufacturing and exporting CVT hubs to global e-bike OEMs.
- It also remains India’s only producer of integrated electric powertrain products for e-bikes.
Key Highlights:
- 1,000+ employees
- 6 manufacturing units
- 1.2 million sq. ft. of covered production area
- 2 state-of-the-art R&D centres
Business Segments
Hero Motors’ operations are structured into two key business segments:
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Powertrain Solutions, and
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Alloys & Metallics (A&M).
The Powertrain segment is further divided based on application:
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Gears & Transmissions (G&T): Serving a broad range of automotive and mobility applications.
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Bike Powertrain (BPT): Catering to the micro-mobility market, including e-bikes, scooters, and other lightweight electric vehicles used in urban areas.
The Alloys & Metallics segment focuses on sheet metal and tubular assemblies for automotive OEMs.
Product Category | Products | End Use Segments |
Gears & Transmissions | Shafts, bearings, chain sprockets, seals, engine gears, transmission gears, gearbox assemblies | Cars, two-wheelers, three-wheelers, ATVs, Motorsport, Performance Automotive and Aerospace |
Bike powertrains | Continuous Variable transmission (CVT), Electronic Drive Unit (EDU), Electric drive motors | E-bikes, Electric two-wheelers and Electric three-wheelers |
Alloys & Metallics | Chaincases, swing arms, mainstands, rims, Engine guards, handlebars, safeguards | Two-wheelers and bicycles/e-bikes |
Gears and transmission units:
Product Applications
- Two-wheelers (motorcycles and scooters)
- Performance automotive (high-torque ICE vehicles)
- E-bikes and micro-mobility
- Off-road and speciality vehicles
- Electric and hybrid cars
- Heavy-duty vehicles
- eVTOL (electric vertical take-off and landing aircraft)
- Aerospace and other advanced mobility platforms
Key Global Customers
- BMW AG – premium automotive
- Ducati Motor Holding S.P.A. – performance motorcycles
- Enviolo International Inc. – CVT technology partner (e-bikes)
- Formula Motorsport Ltd – motorsport segment
- Hummingbird EV Inc. – electric mobility
- HWA AG – motorsports and high-performance vehicles
Strategic Growth Milestones
2001: Commenced operations with the A&M segment, focusing on sheet metal component manufacturing, machining of casting products and other sheet metal components
2018: Partnership with Enviolo (US): To access patented Continuous Variable Planetary (CVP) technology and scale its CVT offerings.
2019: Secured contracts from European two-wheeler OEMs for full gearbox systems and entered the micro-mobility sector.
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2021: Formed a joint venture with Yamaha Motors Japan to manufacture electric motors under the ‘HYM’ brand.
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2022: Acquired a strategic stake in Hewland, a UK-based firm specialising in high-performance gearbox and transmission systems, followed by a majority stake in 2023. This acquisition enhanced Hero Motors’ design, validation, and prototyping capabilities and provided a UK manufacturing base for the EV segment.
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2023:
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Launched a transmission manufacturing plant in Thailand to expand gearbox supply across the ASEAN region.
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Acquired STPL, a manufacturer of high-end components for premium bikes and e-bikes.
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Ventured into the Electric Drive Unit (EDU) segment under the ‘ESYNC’ brand, delivering integrated propulsion systems for micro-mobility applications.
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Manufacturing Footprint
- The company operates three advanced manufacturing facilities in India and Thailand, strategically positioned to capitalise on regional advantages.
- Hero Motors combines operational efficiency with global quality standards, leveraging collaborations with international technology leaders such as Hewland.
- Its production systems are powered by cutting-edge German and Japanese technologies, and supported by a robust design and R&D ecosystem.
Innovation & R&D
Hero Motors has significantly enhanced its in-house innovation and design capabilities. Dedicated technology centres have been established in:
- Southam, United Kingdom – focused on automotive systems, and
- Gautam Buddha Nagar, Uttar Pradesh, India – focused on micro-mobility applications.
These centres support advanced prototyping, testing, and co-development with OEM clients, enabling the company to move beyond traditional "build-to-print" manufacturing and offer end-to-end design and development solutions.
Management
Pankaj Munjal – Chairman
- Over 35 years of experience in the automotive and bicycle industries; leads the Hero Motors Company (HMC) group.
- Heads group companies including Hero Cycles, ZF Hero Chassis Systems, and Munjal Kiriu Industries.
- Educated at The Lawrence School, Sanawar; trained in Automotive Manufacturing at Kettering University; completed executive programs at London Business School and Harvard University.
Amit Gupta – Managing Director & CEO
- Associated with the HMC group since 2004; leads the Company’s strategy and operations.
- Chartered Accountant; PGDM from ISB and Advanced Management Program from Harvard Business School.
- Recognised by ICAI as ‘CA Business Leader – Mid Corporates (Manufacturing & Infrastructure)’ in 2023.
Insights of Hero Motors Unlisted Shares
Financial Highlights
All values in INR - Crs.
Particulars | 2024 | 2023 | 2022 |
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Revenue from Operations | 1,064.39 | 1,054.62 | 914.19 |
Revenue Growth (%) | 0.93% | 15.36% | - |
Gross Profit | 419.37 | 336.07 | 281.38 |
Gross Margin (%) | 39.40% | 31.87% | 30.78% |
Adjusted EBITDA | 122.27 | 110.70 | 102.19 |
Adjusted EBITDA Margin (%) | 11.49% | 10.50% | 11.18% |
Restated Profit for the Year | 17.04 | 40.51 | 99.02 |
Restated Profit Margin (%) | 1.60% | 3.84% | 10.83% |
Return on Equity (ROE) (%) | 4.54% | 12.01% | 61.61% |
Return on Capital Employed (ROCE) (%) | 22.59% | 26.16% | 29.38% |
Net Debt to Adjusted EBITDA (times) | 1.76 | 1.59 | 2.07 |
Fixed Asset Turnover Ratio | 2.40 | 3.20 | 4.69 |
Asset Turnover Ratio | 1.00 | 1.06 | 1.30 |
Revenue Segmentation
Based on Business Segments
Segment | FY24 | % of Revenue | FY23 | % of Revenue | FY22 | % of Revenue |
Powertrain Solutions | 520.23 | 48.88% | 460.19 | 43.64% | 327.6 | 35.83% |
Alloys & Metallics (A&M) | 544.16 | 51.12% | 594.44 | 56.36% | 586.59 | 64.17% |
Total Revenue | 1,064.39 | 100.00% | 1,054.62 | 100.00% | 914.19 | 100.00% |
Based on Geography
Geography | Fiscal 2024 | % of Revenue | Fiscal 2023 | % of Revenue | Fiscal 2022 | % of Revenue |
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India | 624.99 | 58.72% | 659.75 | 62.56% | 641.85 | 70.21% |
Europe(1) | 312.17 | 29.33% | 342.41 | 32.47% | 268.26 | 29.34% |
United States | 81.98 | 7.70% | 39.08 | 3.71% | 2.78 | 0.30% |
Others(2) | 45.26 | 4.25% | 13.38 | 1.27% | 1.30 | 0.15% |
Total | 1,064.39 | 100.00% | 1,054.62 | 100.00% | 914.19 | 100.00% |
Industry Overview
Indian 2-wheeler industry trends:
- Electrification Boost: From FY2019 to FY2024, electric two-wheeler (E2W) sales grew at a CAGR of 101.7%, helping offset a decline in ICE vehicle sales (CAGR -3.7%).
- Scooter Segment Growth: Scooters expanded their share in total two-wheeler sales from 31.7% in FY2019 to 34.2% in FY2024, driven by increased urban and rural demand, especially among women and multiple-vehicle households.
- E-Scooter Penetration: EVs accounted for 14.7% of scooter sales in FY2024, rising from just 0.4% in FY2019, aided by government incentives, increased ICE costs, and new model launches.
- Premiumisation Trend: Premium vehicles (≥125cc) grew significantly — from 41% to 52% in motorcycle sales and 21% to 47% in scooter sales between FY2019 and FY2024, fueled by young buyers and tech-rich features.
- Future Outlook: The industry is projected to grow at a 6–8% CAGR, reaching 25–27 million units by FY2029, with scooters (especially e-scooters) growing faster at 8–10% CAGR, while motorcycles grow at 5–7% CAGR.
Gears and transmissions industry trends:
- 2023 Market Size: Overall Gears & Transmissions market estimated at ₹3,150–3,250 billion.
- 2024 Market Growth: Expected to grow by 1–3% YoY, with a projected market size of ₹3,200–3,300 billion.
- CAGR (2023–2029): Projected to grow at a rate of 4.5–6.5% annually.
- Market Scope: Includes gear components (engine, transmission gears, shafts, gear-set assemblies) and gearbox assemblies for various vehicle types (motorcycles, passenger cars, e-3Ws, ATVs).
Market sizing for gear components (CY23E – CY29P):
IPO Plans
Hero Motors Limited filed a Draft Red Herring Prospectus (DRHP) with SEBI in August 2024 for a ₹900 crore Initial Public Offering (IPO), but subsequently withdrew the application in October 2024. Here are the key highlights:
- IPO Structure: The proposed IPO comprised a fresh issue of equity shares worth ₹500 crore and an offer for sale (OFS) of shares totaling ₹400 crore by existing promoters, including OP Munjal Holdings (₹250 crore), Bhagyoday Investments (₹75 crore), and Hero Cycles (₹75 crore).
- Intended Use of Proceeds: The funds from the fresh issue were planned for repaying certain borrowings, capital expenditure for expanding the Noida facility, funding working capital requirements, and general corporate purposes.
- Withdrawal of DRHP: On October 5, 2024, Hero Motors withdrew its DRHP. While specific reasons were not disclosed, the withdrawal was confirmed by SEBI's processing status.
- Promoter Shareholding: Prior to the proposed IPO, promoters held 91.65% of the company. The OFS was intended to reduce promoter shareholding and provide an exit opportunity for existing investors.
Financial Charts of Hero Motors Unlisted Shares
Balance Sheet of Hero Motors Unlisted Shares
Profit and Loss of Hero Motors Unlisted Shares
Ancillary of Hero Motors Unlisted Shares
Ratio Analysis
Peers
Industry Benchmarking
Segment Revenue
Subsidaries
Security Allotment
Corporate Governance
Team Management Details
FAQs of Hero Motors Unlisted Shares
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How to buy Hero Motors Ltd.?
Below are three ways through which you can purchase Hero Motors Ltd.:
- We at Altius Investech have many actively traded scripts and are market makers of unlisted shares. To check out all the unlisted shares traded. (Click on link). To submit a request to buy Hero Motors Ltd., please click on the trade button at the top of this page
- Additionally, you can download our app from your play store or app store, register on our application, and engage in active trading there.
Download the Altius App here https://onelink.to/hf4m72 - You can also reach out to us at : +91 8240614850 / +91 8240861716
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How to sell Hero Motors Ltd.?
Below are three ways through which you can sell Hero Motors Ltd.:
- We at Altius Investech have many actively traded scripts and are market makers of unlisted shares. To check out all the unlisted shares traded. (Click on link). To submit a request to sell Hero Motors Ltd., please click on the trade button at the top of this page
- Additionally, you can download our app from your play store or app store, register on our application, and engage in active trading there.
Download the Altius App here https://onelink.to/hf4m72 - You can also reach out to us at : +91 8240614850 / +91 8240861716
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What is the price of Hero Motors Ltd.?
We provide a two way quote on all the shares we deal in. Your buy price for Hero Motors Ltd. is ₹212 and your sell price for Hero Motors Ltd. is ₹190. The price is based on our estimates and market conditions.
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What is the lock-in period of Hero Motors Ltd.?
The lock-in period for Hero Motors Ltd. varies depending on the category of investors:
- For retail Investors, HNIs, or Body Corporates, the lock-in period is 6 months from the date of the listing of Hero Motors Ltd.
- For Venture Capital Funds or Foreign Venture Capital Investors, there is a lock-in period of 6 months from the date of acquisition of Hero Motors Ltd.
- For AIF-II (Alternative Investment Funds - Category II), there is no lock-in period
August 2021 saw the introduction of this regulation by SEBI. The purpose of the regulation change, which lowered the lock-in period from a year to six months, was to incentivize additional investments in firms getting ready for initial public offerings, or IPOs. Since its introduction, a number of Portfolio Management Services (PMS) have advised their clients to purchase Pre-IPO shares in order to take advantage of the advantages associated with early-stage investments. This reduction in the lock-in period is considered as a significant step forward.
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How is the Hero Motors Ltd. price calculated?
Fundamental & Comparative valuation models and the forces of demand and supply in the market for unlisted shares dictate the price. These prices are based on our estimates and transaction history of Hero Motors Ltd.. The price is also determined from the most recent funding round for Hero Motors Ltd.. This provides us with a benchmark valuation, offering a clear indication of the company's current market value as perceived by investors and industry experts.
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What are the lot sizes of Hero Motors Ltd.?
We can generally arrange lot sizes starting with an investment of INR 20,000. To confirm the lot sizes of Hero Motors Ltd. with us kindly click here.
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What are the financials of Hero Motors Ltd.?
The financials of Hero Motors Ltd. which includes the P/L of Hero Motors Ltd. and the Balance Sheet of Hero Motors Ltd. is in the financials section (Click on link).
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Where can I find the annual report of Hero Motors Ltd.?
The annual report of Hero Motors Ltd. is available in the annual report section (Click on link).
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Is buying Hero Motors Ltd. legal in India?
Yes, buying and selling unlisted shares in India is indeed 100% legal. This activity is regulated and governed under the guidelines provided by the Securities and Exchange Board of India (SEBI). Investors and traders must adhere to these regulations and guidelines to ensure compliance with legal and financial standards. It's important for participants in the unlisted share market to be aware of and understand these regulations to engage in transactions legally and securely.
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Short-term Capital Gain taxes to be paid on Hero Motors Ltd.?
When you sell unlisted shares within a period of two years from the date of acquisition, any profit earned from the sale is classified as Short-term Capital Gain (STCG). This gain is then added to your total income for that financial year. The tax on this short-term capital gain is calculated based on your applicable individual income tax slab rates. Therefore, the rate at which you will pay tax on the STCG from unlisted shares depends on your total income, including this gain, and the tax slab it falls under as per the prevailing income tax laws in India. It's important for investors to consider these tax implications when engaging in transactions involving unlisted shares.
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Long-term Capital Gain taxes to be paid on Hero Motors Ltd. and how are They Taxed?
Long-term Capital Gains (LTCG) on unlisted shares in India refer to the profits earned from the sale of unlisted shares that have been held for more than two years. The key aspects of LTCG on unlisted shares include:
- Tax Rate: LTCG on unlisted shares is taxed at a rate of 20%.
- Indexation Benefit: This is a significant advantage for investors. Indexation allows for adjusting the purchase price of the shares for inflation, which can reduce the taxable gain.
- Importance for Investors: Understanding LTCG is crucial, especially for High Net-worth Individuals (HNIs) and retail investors, as it impacts their investment strategy and tax planning. Knowing these details helps in making informed investment decisions.
- Calculation: LTCG is calculated by subtracting the indexed cost of acquisition (the purchase price adjusted for inflation) from the sale price of the shares. The profit thus calculated is subject to a 20% tax.
- Applicability: LTCG tax is applicable to profits from the sale of unlisted shares held for more than two years.
- Relevance: This tax is particularly relevant to investors in the unlisted share market, including those considering selling their holdings after a period of more than two years.
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Applicability of Taxes on Hero Motors Ltd. once it is listed?
When shares initially bought in the unlisted market become listed, the taxation rules change significantly if these shares are sold through a stock exchange. Here's what investors need to know:
Transition to Listed Market Tax Rates: Once unlisted shares are listed on the stock exchange and subsequently sold, the tax rates applicable to listed securities come into effect. This shift means that the favourable tax treatments for listed shares, as per the prevailing tax laws, will apply.
Taxation Based on Holding Period: The crucial factor in determining the type of capital gains tax (Long-term or Short-term) is the holding period of the shares. Importantly, this period is calculated from the original purchase date when the shares were unlisted.
Long-term vs. Short-term Capital Gains: If the shares are sold after being held for more than one year from the date of purchase (including the period when they were unlisted), they are subject to Long-term Capital Gains (LTCG) tax.
Conversely, if sold within one-year, Short-term Capital Gains (STCG) tax rates apply.
Significance for Investors: This information is vital for investors in the unlisted market, as it impacts their tax planning and decision-making process. Understanding these nuances ensures that investors can strategically plan the sale of their shares post-listing to optimize tax implications.
Advice for Investors: It's advisable for investors to keep a record of their purchase dates and monitor the listing dates closely. Additionally, staying updated with the latest tax regulations or consulting with a financial advisor is recommended for accurate tax calculations and compliance. -
How does Altius Investech source Hero Motors Ltd.?
At Altius Investech, our approach to sourcing Boat Unlisted Share (Imagine Marketing) involves a strategic and direct method. Primarily, we acquire these shares from the below key groups:
Employees of the Company: Employee stock option plans (ESOPs) or other compensation packages frequently include shares for firm employees. For a various reasons, such as including portfolio diversification or financial considerations, some of these employees may eventually choose to sell their shares. We engage with these employees, providing them a platform to sell their shares.
Initial Investors: These are the angel or early-stage investors who provided capital to the business in its early stages. These original investors may look to sell all or part of their ownership position in the company as it develops and flourishes. This might be done for various reasons such as in order to maximise their investment, reallocate resources, or make other calculated financial decisions.
Funding rounds and VC funds: Altius Investech sources the shares from private placement rounds in which private companies seek to obtain capital from the market. Through our platform, venture capital funds can liquidate their shares and we receive the inventory from them when they decide to sell a portion of their ownership through block trades.
By establishing connections with these groups, Altius Investech guarantees our clients a steady and dependable supply of Boat Unlisted Share (Imagine Marketing). This process not only makes it easier for employees and initial investors in liquidating their assets, but it also gives our clients access to shares that aren't often found on the open market. Our platform effectively facilitates a win-win situation for both buyers and sellers. -
How to trust Altius Investech before buying Hero Motors Ltd. from its platform?
Altius Investech stands at being India's fastest growing and leading marketplace for buying and selling unlisted shares. We believe in enabling access to alternative sources of investments at lower entry barriers to private equity investments.
With more than 25 years of experience, Altius Investech has carved a niche in the financial market by serving more than 8000 clients. The incredible journey is further highlighted by the vast number of transactions that Altius Investech has facilitated transactions that have already exceeded 300 crores.
For investors Altius Investech curates investment opportunities in companies at reasonable valuations which are on the verge of an IPO leading to massive value unlocking. Investments are backed by thorough research and sound investment thesis, with a time bound exit plan.
For ESOP Shareholder and existing Investors, we assist them to liquidate their shares even if they are not publicly traded by creating a platform where we find the right buyers and sellers for the best prices.
Altius Investech have been featured in top media news outlets like Economic Times, Financial Express, Money control. Check out about us on these - leading publications (Click on link) Our journey over these years has not just been about numbers; it's been about building trust and reliability.
We at Altius Investech are dedicated to upholding the greatest levels of ethics and transparency, making sure that your investment experience is not only profitable but also safe and reliable.
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