Hero Motors IPO subscribed 3.36 times on day 2

New Delhi, Sep 17 (PTI) The initial public offer of auto components maker Hero Motors Ltd was subscribed 3.36 times on the second day of the share sale on Thursday.

The Rs 1,000-crore IPO received bids for 29,80,84,496 shares against 8,86,07,596 shares on offer, as per NSE data.

The category for retail investors was subscribed 5.02 times, and the portion for non-institutional investors attracted 3.90 times subscription. The quota for qualified institutional buyers (QIBs) was subscribed 7 per cent.

The initial public offering of Hero Motors Ltd was fully subscribed on the first day of bidding on Wednesday.

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, 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.

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.

The remaining proceeds 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 global customers 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 SUM BAL BAL