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Hero Motors IPO Debuts Below Price on Exchanges
23 Sep
Summary
- Hero Motors shares listed at a discount on NSE and BSE.
- The IPO received strong subscription from various investor categories.
- Company plans to use IPO funds for debt repayment and expansion.
Hero Motors shares commenced trading on September 23 with a weak debut, listing at a discount to their initial public offering (IPO) price. On the NSE, the stock opened at Rs 82, a 2.38 percent decrease from the IPO price of Rs 84. Similarly, it debuted at Rs 82.10 on the BSE, a 2.26 percent discount.
The Rs 1,000-crore IPO, which comprised a fresh issue of Rs 600 crore and an offer-for-sale of Rs 400 crore, attracted significant investor interest. Bids were received for over 58.97 crore shares against the offer size of nearly 8.86 crore shares.
Proceeds from the IPO are earmarked for crucial business objectives. Hero Motors plans to utilize Rs 190 crore for debt repayment and Rs 200 crore for equipment purchase to expand its manufacturing facility in Gautam Buddha Nagar, Uttar Pradesh.
Hero Motors specializes in designing and manufacturing engineered powertrain solutions and operates internationally. The IPO was managed by ICICI Securities, DAM Capital Advisors, and JM Financial.
