New Delhi, Sept. 15 -- Hero Motors Ltd's electric mobility business is expanding and profits are rising. Its Rs.1,000-crore initial public offering, however raises a question: can a richer product mix accelerate modest sales growth and improve returns from underused facilities?

Hero Motors' Rs.1,000 crore IPO opens on Wednesday and closes on Friday, with a price band of Rs.79-84 a share. It arrives a day ahead of the National Stock Exchange's much-awaited Rs.22,561.5 crore IPO - more than 22 times the size of Hero Motors' offer.

The offer comprises a Rs.600 crore fresh issue and a Rs.400 crore offer for sale by promoters OP Munjal Holdings and Hero Cycles. Fresh proceeds will fund Rs.190 crore of debt repayment and Rs.200 crore of equip...