Hero Motors Share Price Rises 20% For Third Session, Stock Gains 69% From ₹84 IPO Price

Hero Motors share price extended its post-listing rally on Friday, September 25, rising as much as 20% to a record high of ₹141.85 on the NSE. The stock opened at ₹130, up 10% from Thursday’s close of ₹118.21, before hitting the upper price band during the session.

Friday marked the third consecutive session of gains for the auto components maker Hero Motors after the stock made a weak debut on September 23. From its IPO price of ₹84, the stock has now gained nearly 69%, despite initially listing below the issue price. The shares had closed at ₹98.40 on the first trading day before rising another 20% on September 24.

The sharp post-listing move has also come alongside heavy trading activity, with around 2.4 crore shares changing hands in a block deal on September 24 at an average price of ₹117, involving shares worth about ₹281 crore.

Hero Motors share price hits ₹141.85

The move has sharply changed the stock's performance since listing. Hero Motors had opened at ₹82 on the NSE on September 23, a 2.38% discount to its ₹84 IPO price. On the BSE, it debuted at ₹82.10, down 2.26% from the issue price.

The stock nevertheless reversed the initial weakness during its debut session and ended at ₹98.40 on the NSE. It then gained another 20% on September 24 before extending the rally for a third session on Friday.

Hero Motors block deal

Trading activity has also increased sharply as the stock has moved higher. A block deal involving around 2.4 crore Hero Motors shares took place on September 24 at an average price of ₹117, taking the transaction value to approximately ₹281 crore. The shares involved were equivalent to around 5.3% of the company's outstanding equity.

The block transaction came as Hero Motors shares were already trading strongly after their discounted listing. The stock closed Thursday at ₹118.21, slightly above the average block-deal price.

On September 24, Hero Motors was among the strongest movers in the market, with the stock hitting its 20% upper circuit at ₹118.08 in NSE data. Trading volume was also substantial, with around 1,476 lakh shares changing hands during the session.

Hero Motors IPO and listing details

Hero Motors raised ₹1,000 crore through its initial public offering, comprising a fresh issue of ₹600 crore and an offer for sale worth ₹400 crore by promoters. The IPO price band was fixed at ₹79-₹84 per share, with the final issue price set at ₹84.

The issue received bids for 58.97 crore shares against 8.86 crore shares on offer, resulting in an overall subscription of 6.66 times. The non-institutional investor portion was subscribed 9.86 times, while the retail portion was subscribed 8.23 times and the qualified institutional buyer category 1.49 times.

Of the ₹600 crore fresh issue, Hero Motors had proposed using ₹190 crore towards repayment, prepayment and redemption of certain borrowings. The company also planned to deploy funds towards capital expenditure and general corporate purposes.

Hero Motors develops and manufactures powertrain solutions and components for automotive original equipment manufacturers across India, Europe, the US and ASEAN markets. Its products cover electric and non-electric applications, including two-wheelers, e-bikes, performance vehicles, off-road vehicles, electric and hybrid cars and heavy-duty vehicles.

Hero Motors shares: What changed after listing?

The stock's three-session performance has been markedly different from its debut. Hero Motors initially listed below the IPO price, but buying interest pushed the shares sharply higher later that day. The gains accelerated over the following two sessions.

The sustained price movement and elevated volumes will remain key market data points as the newly listed stock enters its next phase of trading.

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