Hero Motors shares hit 20% upper circuit after listing at 2% discount on NSE

It listed at ₹82 apiece on the National Stock Exchange (NSE). This reflects a discount of 2.38% per share against the IPO issue price of ₹84.

On the BSE, the stock is listed at ₹82.10 per unit, down 2.26% from the issue price.

Later, the scrip rose 20% to ₹98.40 per unit on NSE, hitting its upper circuit. Its market capitalisation stands at ₹4,469.48 crore.

The initial public offering was subscribed 6.66 times. It mobilised bids for 58,97,26,638 shares against 8,86,07,596 shares on offer, as per the BSE data.

The category for non-institutional investors (NIIs) was subscribed 9.86 times, while the quota for retail individual investors was booked 8.23 times. The portion reserved for qualified institutional buyers, or QIBs, got 1.49 times the subscription.

The mainboard issue comprised a fresh issuance of 7.14 crore equity shares, aggregating to ₹600 crore, and an offer-for-sale (OFS) component of shares valued at ₹400 crore by promoters OP Munjal Holdings and Hero Cycles.

Of the fresh issue proceeds, ₹190 crore will be utilised for debt clearance, while ₹200 crore will be used for purchasing equipment required for capacity expansion at the firm's facility in Uttar Pradesh.

A part will also be used for inorganic growth through unidentified acquisitions and other strategic initiatives, besides corporate general purposes.

Hero Motors is an automotive technology company engaged in designing, developing, manufacturing and supplying engineered powertrain solutions to automotive original equipment manufacturers (OEMs) in the US, Europe, India and the Association of Southeast Asian Nations (ASEAN) region.

The company caters to several global firms, including BMW AG, Ducati Motor Holding SPA, Enviolo International Inc, Formula Motorsport Ltd and Hummingbird EV.

The company's shares are expected to debut on the stock market on September 23.

Before the IPO, the company fetched nearly ₹300 crore from anchor investors, including ICICI Prudential Life Insurance Company Ltd, Edelweiss Life Insurance Company Ltd, Societe Generale, 3P India Equity Fund 1M, ASAS Global Fund Incorporated VCC Sub Fund, ICICI Prudential Mutual Fund, JM Financial Mutual Fund, Bank of India Mutual Fund and Kotak Mahindra Mutual Fund, among others.

Hero Motors designs, develops, makes and supplies powertrain systems and components to automotive original equipment manufacturers.