New Delhi, Sep 18 (PTI) The initial public offering of auto components maker Hero Motors Ltd was subscribed 6.66 times on the final day of bidding on Friday.
The Rs 1,000-crore IPO received bids for 58,97,26,638 shares against 8,86,07,596 shares on offer, as per the NSE data.
The category for non-institutional investors was subscribed 9.86 times, while the quota for retail investors was booked 8.23 times. The portion reserved for Qualified Institutional Buyers (QIBs) was subscribed 1.49 times.
Hero Motors Ltd on Tuesday garnered nearly Rs 300 crore from anchor investors.
The company has fixed a price band of Rs 79-84 per equity share for its IPO.
The mainboard issue comprises a fresh issuance of equity shares, aggregating up to Rs 600 crore, and
an Offer-for-Sale (OFS) of shares worth up to Rs 400 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.
The remaining IPO funds will be used for inorganic growth through unidentified acquisitions and other strategic initiatives, besides general corporate purposes.
Hero Motors is an automotive technology company engaged in designing, developing, manufacturing and supplying engineered powertrain solutions to automotive original equipment manufacturers (OEMs) in the US, Europe, India and the Association of Southeast Asian Nations (ASEAN) region.
The company caters to several global firms, including BMW AG, Ducati Motor Holding SPA, Enviolo International Inc, Formula Motorsport Ltd and Hummingbird EV.
The company’s shares are expected to debut on the stock market on September 23. PTI SUM SHM
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