Stories
Hero Motors Shares Plunge 10% Amid Profit Booking, Still Up 56% From Listing
- •Hero Motors shares hit the 10 percent lower circuit on Monday due to profit booking, days after its market debut.
- •The stock traded at Rs 127.67 per share on the BSE, marking a 10 percent drop, the session's lowest permissible limit.
- •Despite the fall, Hero Motors shares remain 55.7 percent higher than their listing price of Rs 82 per share.
- •The company's IPO price band was fixed at Rs 79-84 per share, raising Rs 1,000 crore through a fresh issue and an offer-for-sale.
- •Hero Motors plans to use IPO proceeds for debt repayment, capacity expansion in Gautam Buddha Nagar, and funding inorganic growth.
Key Questions Answered
Hero Motors fixed its IPO price band at Rs 79 to Rs 84 per share, with the total issue valued at Rs 1,000 crore. This comprised a fresh issue of shares worth Rs 600 crore and an offer-for-sale component of Rs 400 crore.
Hero Motors shares made a subdued market debut on September 23, opening at a discount on both major stock exchanges. The stock opened at Rs 82 on the NSE, which was a 2.38 percent discount to the IPO issue price of Rs 84, and debuted at Rs 82.10 on the BSE.
Hero Motors stated that it plans to allocate Rs 190 crore from the fresh issue toward the repayment or prepayment of certain borrowings. Another Rs 200 crore is earmarked for purchasing equipment to expand capacity at its facility in Gautam Buddha Nagar, Uttar Pradesh, while the remaining proceeds will fund inorganic growth, strategic initiatives, and general corporate purposes.
