Hero Motors Shares Fall 10% After 3-Day Listing Rally, Stock Still Up 56% From Debut Price
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Hero Motors shares saw a sharp reversal after gaining 20% in each of the first three sessions following their market debut. Monday’s fall came after the stock had moved significantly above its IPO issue price of ₹84, bringing its post-listing trading performance into focus.
Hero Motors shares fell 10% to ₹127.67 on Monday, September 28, hitting the lower circuit on the BSE after a sharp three-session rally following the company’s stock market debut. The shares opened at ₹142.30 before falling to ₹127.67, their lowest permissible level for the session. At Monday’s low, the stock was still 55.7% above its NSE debut price of ₹82.
The correction came after Hero Motors shares had risen 20% in each of the three trading sessions following their September 23 listing. The stock had closed at ₹141.85 on Friday, September 25, meaning Monday’s lower circuit marked a sharp reversal after the newly listed stock’s rapid rise.
Hero Motors had made a muted debut on the NSE at ₹82, a 2.38% discount to its IPO issue price of ₹84, while it opened at ₹82.10 on the BSE. The stock subsequently moved above its issue price and recorded three straight sessions of 20% gains.
Hero Motors Share Price Today
Hero Motors shares opened at ₹142.30 on Monday before coming under selling pressure and falling to ₹127.67 on the BSE. The 10% decline placed the stock at the lower circuit.
The move followed a strong post-listing run. Hero Motors closed at ₹98.40 on its debut session after recovering from its discounted listing, before gaining 20% in each of the next two sessions. By September 25, the stock had reached ₹141.85.
The three-day rally had taken the stock well above its ₹84 IPO price before Monday’s correction. Even after the 10% fall, Hero Motors remained significantly above both its IPO issue price and its NSE listing price.
Why Are Hero Motors Shares Falling Today
Monday’s decline came after the sharp rise recorded immediately after the listing, with the stock falling amid profit booking, according to market reports.
The stock’s post-listing performance followed strong demand for the IPO. Hero Motors’ ₹1,000 crore public issue was subscribed 6.66 times overall, according to NSE data. The retail portion was subscribed 8.23 times, while the non-institutional investor portion saw 9.86 times subscription.
The IPO comprised a ₹600 crore fresh issue and a ₹400 crore offer for sale. The company proposed using ₹190 crore of the fresh issue proceeds towards repayment or prepayment of borrowings and ₹200 crore towards equipment for capacity expansion at its Gautam Buddha Nagar facility. The remaining proceeds were earmarked for potential acquisitions, strategic initiatives and general corporate purposes.
Hero Motors IPO And Business Details
Hero Motors is an automotive technology company that develops and manufactures engineered powertrain solutions for automotive original equipment manufacturers. Its products cater to electric and non-electric applications across two-wheelers, e-bikes, performance and off-road vehicles, electric and hybrid cars and heavy-duty applications.
The company’s IPO opened on September 16 and closed on September 18, with a price band of ₹79-84 per share and a lot size of 178 shares. The shares were listed on the NSE and BSE on September 23.
The IPO raised ₹1,000 crore through a combination of fresh shares and an offer for sale. Hero Motors’ post-listing trading has so far been marked by a sharp turnaround from its discounted debut, followed by a rapid rally and Monday’s lower-circuit correction.
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This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Rochelle Britto has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
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