Hero Motors IPO Fully Subscribed on Opening Day
India’s auto parts maker Hero Motors’ $104.2 million initial public offering (IPO) was fully subscribed on its first day of bidding on Wednesday, with strong demand from retail investors. By 2:40 PM IST, investors had bid for 95.3 million shares, or 1.08 times the 88.6 million shares on offer, according to exchange data.
The IPO has a price band of ₹79 to ₹84 per share, valuing the company at about $401.16 million at the upper end. Retail investors subscribed to 1.79 times their reserved portion, while the non-institutional portion was subscribed 0.84 times and qualified institutional buyers had bid for 0.01 times their allocation.
Hero Motors, led by Pankaj Munjal, counts BMW and Ducati among its clients. The IPO includes a fresh issue of shares worth up to ₹6 billion and an offer for sale of up to ₹4 billion. The company plans to use the proceeds to reduce debt and expand a manufacturing facility, while IPO activity in India remains strong.
Pic courtesy: google/ images are subject to copyright
