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.
The company, which counts BMW and Ducati among its clients, is seeking a valuation of $401.16 million at the upper end of the Rs 79-84 price band.
Hero Motors received bids for 95.3 million shares worth about Rs 800 crore ($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 Rs 300 crore to anchor investors at Rs 84 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 Rs 600 crore and an offer for sale worth up to Rs 400 crore.
Proceeds will be used for debt reduction and to expand a manufacturing facility. IPO activity remains strong, with listings planned by the top bourse, the National Stock Exchange of India.
Reuters
