Hero Motors IPO opens on September 16; check price band, lot size, issue details and more

Auto components and advanced mobility manufacturer Hero Motors Ltd has fixed the price band for its Rs 1,000 crore Initial Public Offering at Rs 79 to Rs 84 per share. The issue will open for subscription on Wednesday, September 16, and close on Friday, September 18.

The IPO will comprise a fresh issue of equity shares worth Rs 600 crore and an offer-for-sale (OFS) worth Rs 400 crore. At the upper end of the price band, Hero Motors will have a market capitalisation of Rs 3,815 crore, while promoter holding in the company will fall to 61.63 per cent from 85.57 per cent as a result of the OFS.

Each share will have a face value of Rs 10. One lot will comprise 178 shares, and retail investors will have to make a minimum investment of Rs 14,952 and bid in multiples of 178 shares thereafter.

Of the total issue, 35 per cent has been reserved for retail investors and 50 per cent for institutional investors, while the remaining portion will be allotted to non-institutional investors. ICICI Securities, DAM Capital and JM Financial are the book-running lead managers for the issue, while Kfin Technologies is the official registrar.

Allotment of shares to eligible investors will take place on September 21, and the shares will be credited to the demat accounts of shareholders on September 22. Shares of Hero Motors will make their stock market debut on Wednesday, September 23.

Hero Motors also produces high-end transmission systems, drive units and engine components, and counts major international brands such as BMW and Ducati, along with other two-wheeler and electric bicycle manufacturers, among its key clients. The company’s Rs 1,000 crore IPO will be open from September 16 to September 18 in a price band of Rs 79 to Rs 84 per share.