Hero Motors IPO fully subscribed on day one
The initial public offer of auto parts maker Hero Motors Ltd was fully subscribed on the first day of bidding on Wednesday. The Rs 1,000-crore IPO received bids for 9,75,33,498 shares against 8,86,07,596 shares on offer, registering 1.10 times subscription, according to NSE data till 14:42 hours. The retail investors’ category was subscribed 1.83 times, while the quota for non-institutional investors received 86 per cent subscription. The portion for qualified institutional buyers (QIBs) was subscribed 1 per cent. Hero Motors Ltd on Tuesday garnered nearly `300 crore from anchor investors.
The company has fixed a price band of Rs 79-84 per equity share for its Rs 1,000-crore IPO, which will remain open for subscription till September 18. The IPO comprises a fresh issue of equity shares aggregating up to Rs 600 crore and an offer-for-sale (OFS) of shares worth up to Rs 400 crore by promoters.
Under the OFS, OP Munjal Holdings will divest shares worth Rs 395 crore, while Hero Cycles Ltd will sell shares worth Rs 5 crore. Of the fresh issue proceeds, Rs 190 crore will be used for repayment or prepayment of certain outstanding borrowings, while Rs 200 crore will be utilised for purchasing equipment required for capacity expansion at the company’s facility in Gautam Buddha Nagar, Uttar Pradesh.
