BENGAlURU: Shares of Hero Motors rose 6.5% yesterday after a subdued market debut, following the Indian auto parts maker’s US$104.2 million (RM424 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 10.15am IST.
At that price, the company was valued at roughly 40.06 billion rupees (RM1.7 billion).
Hero Motors, which counts BMW and Ducati among its clients, raised 10 billion rupees through the IPO. The offering comprised a fresh issue of shares worth 6 billion rupees and a 4-billion-rupee offer for sale by existing shareholders.
The IPO was subscribed 6.66 times overall. Qualified institutional buyers bid 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.
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.
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.
The company plans to use the proceeds to reduce debt and purchase equipment to expand a manufacturing facility in the northern Indian state of Uttar Pradesh.
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. – Reuters
