Hero Motors shares made a subdued debut on the stock exchanges on Wednesday, September 23, opening below their initial public offering (IPO) price despite strong investor participation during the subscription period.
The stock opened at Rs. 82 on the National Stock Exchange (NSE), marking a 2.38% discount to its final IPO price of Rs. 84 per share. On the Bombay Stock Exchange (BSE), the shares opened at Rs. 82.10, down 2.26% from the issue price.
The listing was broadly in line with grey market indications before the market debut. However, grey market premium (GMP) data remains unofficial and does not guarantee the actual listing price or future stock performance.
The Rs. 1,000-crore Hero Motors IPO attracted bids for 58.97 crore shares against 8.86 crore shares on offer. The issue was subscribed 6.66 times overall.
The non-institutional investor category recorded the highest subscription at 9.86 times. Retail investors subscribed 8.23 times, while qualified institutional buyers received bids equivalent to 1.49 times the shares reserved for the category.
The IPO opened for subscription on September 16 and closed on September 18. The company had set the price band at Rs. 79-84 per share, with the final issue price fixed at the upper end of the band.
The IPO comprised a fresh issue worth Rs. 600 crore and an offer-for-sale component of Rs. 400 crore. The selling shareholders included O P Munjal Holdings and Hero Cycles.
Hero Motors plans to use part of the fresh proceeds to repay or prepay borrowings. It also earmarked funds for purchasing equipment to expand capacity at its Gautam Buddha Nagar facility in Uttar Pradesh. The remaining proceeds will support acquisitions, strategic initiatives, and general corporate purposes.
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