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India's Hero Motors IPO fully Subscribed on Opening Day

Sept 16 (Reuters) - Indian auto parts maker Hero Motors' $104.2 million IPO was fully subscribed on the ​first day of bidding on Wednesday, exchange data ‌showed, led by demand from retail investors.

Here are the details:

  • The company, which counts BMW and Ducati among its clients, is seeking ​a valuation of $401.16 million at the upper end ​of the 79 rupees to 84 rupees price ⁠band

  • Hero Motors received bids for 95.3 million shares worth ​about 8 billion rupees ($83.36 million) as of 2:40 PM ​IST, or 1.08 times the 88.6 million shares on offer, exchange data showed

  • The firm is led by Pankaj Munjal, whose family also ​runs India's largest two-wheeler maker by volumes, Hero MotoCorp

  • Qualified ​institutional buyers bid for 0.01 times the shares reserved for them, ‌while ⁠non-institutional and retail portions were subscribed 0.84 times and 1.79 times, respectively

  • Hero Motors allocated shares worth 3 billion rupees to anchor investors at 84 rupees apiece, the upper end ​of the ​IPO price band, ⁠ahead of the IPO opening

  • The IPO comprises a fresh issue of shares worth up ​to 6 billion rupees and an offer ​for ⁠sale worth up to 4 billion rupees

  • Proceeds will be used for debt reduction and expand a manufacturing facility

  • IPO activity remains ⁠strong with ​listings planned by top bourse National ​Stock Exchange of India

($1 = 95.9650 Indian rupees)

Reporting by Anushka Rajvedi and Surbhi ​Misra in Bengaluru; Editing by Subhranshu Sahu and Mrigank Dhaniwala

Source: Reuters


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