Mumbai: Hero Motors shares staged a sharp recovery after making a muted stock market debut, initially listing over 2 per cent below its ₹84 IPO issue price.
The stock opened at ₹82.10 on the BSE, a discount of 2.26 per cent to the issue price. On the NSE, Hero Motors debuted at ₹82, down 2.38 per cent.
The stock later climbed to ₹98.51 on the BSE. The shares traded 17.27 per cent above the issue price, reversing their early weakness.
Hero Motors commanded a market capitalisation of ₹4,433.14 crore.
IPO Subscribed 6.66 Times
The ₹1,000-crore Hero Motors IPO received 6.66 times subscription on the final day. The company had fixed a price band of ₹79–₹84 per share.
The mainboard offer comprised a fresh issue of shares worth up to ₹600 crore and an offer for sale aggregating ₹400 crore.
How Hero Motors Will Use IPO Funds
From the fresh issue proceeds, Hero Motors will use ₹190 crore to repay or prepay outstanding borrowings.
Another ₹200 crore will finance equipment purchases for capacity expansion at the company’s facility in Gautam Buddha Nagar, Uttar Pradesh.
The remaining funds will support inorganic growth through acquisitions, strategic initiatives and general corporate purposes. Proceeds from the OFS will go to the selling shareholders.
Hero Motors Business Profile
Hero Motors is an automotive technology company designing, developing, manufacturing and supplying engineered powertrain solutions to original equipment manufacturers.
Its customer base spans the United States, Europe, India and the ASEAN region. The company serves global automotive and mobility businesses, including BMW, Ducati Motor Holding, Enviolo International, Formula Motorsport and Hummingbird EV.
The stock’s intraday rebound indicated renewed investor demand after its discounted opening. However, investors should assess its financial performance, execution risks and valuation before making decisions based on listing-day movements.
