Hero Motors Shares Jump 17% After Weak Listing As Stock Rises
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Hero Motors shares climbed 17.14% to ₹98.40 after opening at ₹82 on the NSE, below the ₹84 IPO price. The stock saw strong trading activity after the ₹1,000 crore issue received 6.66 times subscription during its three-day offer.
Newly listed IPO Hero Motors shares jumped 17.14% to ₹98.40 on Wednesday, recovering sharply after the stock made a weak debut on the exchanges. The shares had listed at ₹82 on the NSE, below the IPO price of ₹84, before gaining momentum in early trade.
On the BSE, the shares opened at ₹82.10 and moved up to ₹94.55. The stock had touched an intraday low of ₹80.50 on the exchange before recovering. Trading activity was also high, with more than 73 lakh shares changing hands on the BSE by around 10:15 am.
The move came a day after Hero Motors completed its ₹1,000 crore IPO. The issue was subscribed 6.66 times, with investors bidding for 58.97 crore shares against 8.86 crore shares on offer.
Demand was strongest among non-institutional investors, whose portion was subscribed 9.86 times. The retail portion received bids for 8.23 times the shares on offer, while the qualified institutional buyer category was subscribed 1.49 times.
Hero Motors had fixed the IPO price band at ₹79 to ₹84 per share. The issue included a fresh issue of ₹600 crore and an offer for sale of ₹400 crore. Ahead of the IPO, the company had raised around ₹300 crore from anchor investors at ₹84 per share.
The company makes powertrain systems and components for automotive manufacturers. Its products are used in two-wheelers, electric and hybrid vehicles, performance cars, off-road vehicles and heavy-duty applications.
Hero Motors operates through two main segments, Powertrain Solutions and Alloys & Metallics. Powertrain Solutions accounted for 53.67% of revenue in FY26, with Alloys & Metallics contributing the rest. The company had six manufacturing facilities across India, the UK and Thailand as of March 31, 2026.
Its customer base includes global automotive names such as BMW, Ducati, Enviolo and HWA, along with other manufacturers across conventional and electric mobility.
The company also reported an improvement in its financial performance in FY26. Consolidated sales rose to ₹1,188.35 crore from ₹1,096.76 crore a year earlier, while net profit increased to ₹41.17 crore from ₹32.80 crore. EBITDA rose to ₹149.74 crore from ₹114 crore during the year.
Operating cash flow also improved, rising to ₹144.04 crore in FY26 from ₹48.34 crore in FY25.
Hero Motors plans to use part of the IPO proceeds to reduce debt and fund capacity expansion. The company has earmarked ₹190 crore for repayment or prepayment of certain borrowings and ₹200 crore for equipment at its manufacturing facility in Gautam Buddha Nagar, Uttar Pradesh.
The planned investment is expected to be deployed in phases through FY29. The company is also setting up manufacturing facilities in Ludhiana and Bengaluru as it expands its powertrain business across conventional and electric vehicle applications.
For now, the stock's early trading has taken it well above its ₹84 IPO price after starting below the issue price. The shares were trading around ₹95 during morning trade, putting the stock firmly in focus on its first day on the exchanges.
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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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