Hero Motors IPO Sees Significant Interest
The initial public offering (IPO) of Hero Motors, an automotive parts maker, continued its impressive performance on the second day of bidding. As of 11:50 am on September 17, the IPO received 2.26 times subscription, according to NSE data.
Subscription Details
The Rs 1,000‑crore IPO received bids for 20,02,22,054 shares against 8,86,07,596 shares on offer. Retail investors led the demand with 3.57 times subscription, while the non‑institutional investor (NII) category was subscribed 2.20 times.
IPO Details
The three‑day IPO will remain open until September 18. Hero Motors has fixed the price band at Rs 79‑84 per share. The company is raising Rs 600 crore through a fresh issue, while its promoters, O P Munjal Holdings and Hero Cycles, are offering shares worth Rs 400 crore through an offer for sale (OFS).
Use of Proceeds
Hero Motors plans to use Rs 190 crore from the fresh issue towards repayment or pre‑payment of debt. Another Rs 200 crore has been earmarked for purchasing equipment required for capacity expansion at its Gautam Buddha Nagar facility in Uttar Pradesh. The remaining proceeds will be used for funding inorganic growth through acquisitions and general corporate purposes.
Management and Listing
The IPO is being managed by ICICI Securities, DAM Capital Advisors and JM Financial, with KFin Technologies as registrar. Shares are slated to list on the NSE and BSE, with a tentative listing date of September 23.
About Hero Motors
Hero Motors designs and manufactures engineered power‑train solutions for automotive original equipment manufacturers (OEMs) across India, the US, Europe and the ASEAN region. Its customer base includes BMW AG, Ducati Motor Holding, Enviolo International, Formula Motorsport and HWA AG.