Hero Motors IPO oversubscribed 6.66 times, shares jump 6.5%
Business
Hero Motors made its stock market debut on Wednesday, opening a bit below its IPO price at ₹82, but quickly bouncing up by 6.5% to ₹89.11.
This pushed the company's value to about ₹4,006 crore ($418.95 million).
The IPO itself was a hit, raising ₹1,000 crore and getting oversubscribed 6.66 times overall, mostly thanks to strong interest from retail and non-institutional investors.
Hero Motors proceeds for debt, expansion
The money raised will go toward paying off debt and expanding manufacturing in Uttar Pradesh.
Hero Motors already works with big names like BMW and Ducati, and is led by Pankaj Munjal, whose family also runs Hero MotoCorp (India's largest two-wheeler maker by volumes).
Hero Motors is led by Pankaj Munjal, so there are some pretty close ties behind the scenes.