Sept 23 (Reuters) - Shares of Hero Motors rose 6.5% on Wednesday after a subdued market debut, following the Indian auto parts maker's $104.2 million initial public offering.
The stock opened at 82 rupees on the National Stock Exchange, a 2.4% discount to its IPO price of 84 rupees, before recouping losses to trade 6.5% higher at 89.11 rupees by 10:15 a.m. IST. At that price, the company was valued at roughly 40.06 billion rupees ($418.95 million).
Here are the details:
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Hero Motors, which counts BMW and Ducati among its clients, raised 10 billion rupees through the IPO, comprising a fresh issue of shares worth 6 billion rupees and a 4-billion-rupee offer for sale by existing shareholders.
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The IPO was subscribed 6.66 times overall, with qualified institutional buyers bidding for 1.49 times the shares reserved for them, while the non-institutional and retail portions were subscribed 9.86 times and 8.23 times, respectively.
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The company had sought a valuation of about 38.15 billion rupees at the upper end of its IPO price band of 79 rupees to 84 rupees per share.
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Hero Motors makes automotive components and is led by Pankaj Munjal, whose family also runs Hero MotoCorp, India's largest two-wheeler maker by volumes.
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The company plans to use proceeds to reduce debt and purchase equipment to expand a manufacturing facility in the northern Indian state of Uttar Pradesh.
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India's IPO market has regained momentum in the second half of 2026 after geopolitical tensions and market volatility curbed issuance earlier in the year, with a wave of companies tapping the market in recent months.
($1 = 95.6200 Indian rupees)
Reporting by Surbhi Misra in Bengaluru; Editing by Sherry Jacob-Phillips
Source: Reuters