The stock began trading at ₹82 per share, marginally lower than its IPO price of ₹84.
Ahead of the stock’s listing today, the Grey Market Rates were also pointing to a listing at a discount of ₹2 to ₹3 below issue price.
The ₹1,000 crore IPO of Hero Motors was subscribed 6.66 times the total shares on offer during the three days of bidding. Subscription was led by the non-institutional and retail investors.
The portion reserved for non-institutional investors was subscribed 9.9 times, while the retail investors portion was subscribed 8.2 times the number of shares reserved for them.
Hero Motors is an automotive technology company that is engaged in the design, development, manufacturing and supply of engineering powertrain solutions. It caters to automotive OEMs in the US, Europe, India and the ASEAN region.
Its offerings find application in two-wheelers, e-bikes, off-road vehicles, electric and hybrid cars, heavy duty vehicles. The company’s customers include the likes of BMW, Ducati, Enviolo, Formula Motorsport, Hummingbird EV, HWA.
The company had sold shares between ₹79 to ₹84 per share. The IPO was a combination of a fresh issue of shares as well as an Offer For Sale.
Ahead of the IPO, the company had already raised ₹300 crore from anchor investors. ₹190 crore of the fresh issue proceeds will be used for repayment, pre-payment and redemption of existing debt, while ₹200 crore will be for capex, and general corporate purposes.
At the upper end of the price band, Hero Motors was valued at 92.6 times one-year forward price-to-earnings and an EV/EBITDA multiple of 34.3 times, implying a market capitalization of ₹3,815 crore.