The initial public offering (IPO) of Hero Motors is set to make its stock market debut on Wednesday, Sept 23. Ahead of its listing on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), the latest grey market premium (GMP) indicates an implied listing price below the IPO issue price.
Hero Motors IPO Expected Listing Price
Hero Motors IPO GMP stood at Rs -3 as of 9:30 a.m. on Sept. 23, implying a listing price of Rs 81, or Rs 3 below the IPO issue price of Rs 84. This translates to a 3.57% discount to the issue price.
Note: GMP is entirely unofficial, based on speculative unlisted market demand, and does not guarantee the actual listing price.
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Hero Motors IPO Final Subscription Status
The initial public offering (IPO) of Hero Motors was subscribed 6.66 times on the third and final day of bidding on Sept. 18, according to NSE data.
The category-wise subscription breakdown was as follows:
- Qualified Institutional Buyers (QIB): 1.49 times
- Non-Institutional Investors (NII): 9.86 times
- Retail Investors: 8.23 times
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Hero Motors IPO Allotment And Listing Date
The share allotment for Hero Motors IPO was finalised on Sept. 21. Shares of Hero Motors are scheduled to list on the NSE and BSE today, Sept. 23.
Hero Motors IPO Details
Hero Motors IPO is a book build issue of Rs 1,000 crore. The issue is a combination of fresh issue of 7.14 crore shares aggregating to Rs 600 crore and offer for sale of 4.76 crore shares worth Rs 400 crore.
The final issue price for the IPO is set at Rs 84 per share.
Retail investors were required to bid for a minimum lot size of 178 shares, translating to a minimum investment of Rs 14,952 at the upper end of the price band.
ICICI Securities Ltd. is the book running lead manager and Kfin Technologies Ltd. is the registrar of the issue.
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Hero Motors IPO: Use Of Proceeds
The company proposes to utilise the net proceeds from the issue towards the following objects:
- Repayment/prepayment/redemption, in full or in part, of certain outstanding borrowings availed by the company (Rs 190 crore)
- Capital expenditure of Company through purchase of equipment for expansion in capacity of Gautam Buddha Nagar, Uttar Pradesh facility (Rs 200 crore)
- Funding inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes (Rs 171.99 crore)
- The remaining amount will be used for issue expenses (Rs 60.25 crore)
About Hero Motors Ltd.
Incorporated in April 1998, Hero Motors Ltd. is an automotive technology company engaged in designing, developing, manufacturing and supplying engineered powertrain solutions to automotive original equipment manufacturers (OEMs) across the United States, Europe, India and ASEAN region.
The company provides integrated solutions for both electric and non-electric powertrains, serving two-wheelers, performance automotive, e-bikes, off-road vehicles, electric and hybrid cars, heavy-duty vehicles and eVTOL applications.
Hero Motors offers system-level and component-level solutions covering designing, prototyping, validation, development and delivery of powertrain systems. It is recognised for its expertise in continuously variable transmissions (CVT), EV transmissions, electric motors, integrated drive units and gear sets.
Disclaimer: Investments in IPOs are subject to market risks. Investors should read the red herring prospectus carefully and consult a financial adviser before making investment decisions.
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