As many as 2.4 crore Hero Motors shares changed hands in the block deal, equivalent to around 5.3% of the company’s total outstanding equity.
The shares changed hands at an average price of ₹117 apiece, taking the total transaction value to around ₹281 crore.
Hero Motors had made a subdued debut on the stock exchanges on Wednesday, September 23, listing below its IPO issue price.
The stock opened at ₹82 on the National Stock Exchange, compared with its issue price of ₹84, a discount of 2.38%. On the Bombay Stock Exchange, it opened at ₹82.10, a discount of 2.26%.
The stock, however, gained sharply during its debut session and closed at ₹98.40 on the NSE and ₹98.51 on the BSE.
The ₹1,000 crore IPO of Hero Motors was subscribed 6.66 times during the three day bidding period. The non institutional investor portion was subscribed 9.86 times, while the retail portion was subscribed 8.23 times. The qualified institutional buyer portion was subscribed 1.49 times.
The company had set the IPO price band at ₹79 to ₹84 per share. The issue comprised a fresh issue of ₹600 crore and an offer for sale of ₹400 crore. Hero Motors had also raised ₹300 crore from anchor investors ahead of the IPO.Of the fresh issue proceeds, ₹190 crore was earmarked for repayment, prepayment and redemption of certain borrowings, while the company also planned to use funds towards capital expenditure and general corporate purposes.
Hero Motors is an automotive technology company focused on the design, development, manufacturing and supply of powertrain solutions. Its products cater to automotive original equipment manufacturers across the US, Europe, India and the ASEAN region.
Its portfolio includes solutions for two wheelers, electric bicycles, off road vehicles, electric and hybrid cars and heavy duty vehicles. Its customers include BMW, Ducati, Enviolo, Formula Motorsport, Hummingbird EV and HWA.
At the upper end of the IPO price band, Hero Motors was valued at around 92.6 times one year forward price to earnings and 34.3 times EV to EBITDA, implying a market capitalisation of around ₹3,815 crore.