The Hero Motors IPO is seeing steadfast investor participation. So far, the Rs 1,000 crore issue has been subscribed 3.10 times. The auto major’s offer was booked fully on the very first day of its bidding, seeing active participation in the retail segment.
Hero Motors IPO details
Ahead of its opening, the company had raised Rs 300 crore through its anchor book, which included 15 entities like Societe Generale, ICICI Prudential Mutual Fund, and Kotak Mahindra Mutual Fund.
Of the total float, the Pankaj Munjal-led firm is raising Rs 600 crore through the issuance of 7.14 crore fresh equity shares, while investors will offload 4.76 crore shares aggregating to Rs 400 crore through the offer for sale route. Each share has a face value of Rs 10. Its issue price band is fixed at Rs 79 – 84.
Hero Motors IPO: Subscription snapshot
As of the second day of bidding, the automaker’s IPO has received bids for 27.49 crore shares against its offer of 8.86 crore shares. So far, the issue has been booked 3.10 times, with the retail individual investors segment being subscribed 4.74 times.
The non-institutional investors category, which was not fully subscribed on day one, has been oversubscribed by 3.34 times. However, the Qualified Institutional Buyers (QIBs) portion has so far attracted minimal investor interest, being booked 0.06 times.
📊 Day 1 Live Snapshot (at 4:00 PM IST)
The table below represents how the Hero Motors IPO is stacking up against the general bidding interest:
| Category | Subscription Status | Shares Offered | Bids Received |
| Qualified Institutional Buyers (QIBs) | 0.06x (6%) | 2,53,16,456 | 16,09,832 |
| Non Institutional Investors | 3.34x (334%) | 1,89,87,342 | 6,34,87,616 |
| Retail Individual Investors (RIIs) | 4.74x (474%) | 4,43,03,798 | 20,98,58,796 |
| Total | 3.10x (310%) | 8,86,07,596 | 27,49,56,244 |
Hero Motors IPO: GMP sees sharp decline
Over the past sessions, the automaker’s grey market premium has fallen sharply in the unlisted markets. As per the latest update, Hero Motors’ GMP is Rs 7, suggesting a listing price of Rs 91, based on the upper end of the price band.
This reflects gains of 8% per share and a profit of Rs 1,246 per lot. However, it is important to note that GMP is an unregulated method to estimate the listing price and is highly vulnerable to market manipulation.
Hero Motors IPO: Subscription timeline
The IPO, which opened for public subscription on September 16, will wrap up its bidding window on September 18. Its share allotment process is expected to be completed by September 21, and bidders are likely to be credited with shares and refunds by September 22.
Hero Motors is expected to list on the NSE and BSE on September 23.
About the Hero Motors IPO
The automaker’s issue is being handled by ICICI Securities, DAM Capital Advisors, and JM Financial, while KFin Technologies is the registrar to the issue. Investors can bid in lots of 178 shares and thereafter.
Through the fresh proceeds, the company aims to repay its debt and fund its new machinery and strategic initiatives.