Hero Motors Sets IPO Price Band at Rs 79-84 for Rs 1,000-Crore Issue: Key Dates and Details Revealed!

Hero Motors, an established auto components manufacturer, has set the price band for its Rs 1,000-crore IPO at Rs 79 to Rs 84 per share. This pricing values the company at Rs 3,815 crore at the upper end of the band. The public offer is scheduled to open for subscription from September 16, closing on September 18. The IPO consists of a fresh issue of shares worth Rs 600 crore and an offer for sale (OFS) amounting to Rs 400 crore, with retail investors allocated 35% of the issue and institutional investors 50%.

Sentiment in the grey market appears cautiously optimistic as potential investors await more details leading up to the subscription opening. The estimated listing gains based on the current price band suggest a moderate to bullish outlook. Retail investors will need to invest a minimum of Rs 14,952 at the upper price point, reflecting a lot size of 178 shares. The company’s market capitalization post-issue will float around Rs 3,815 crore, with a diluted Price-to-Earnings (P/E) ratio ranging from 69.30x at the lower end to 73.68x at the higher end of the pricing spectrum.

The listing of Hero Motors represents a key event for Indian investors, particularly those interested in the growing auto component segment. With its robust clientele, including international names like BMW and Ducati, the company is well-positioned for future growth. Furthermore, the IPO proceeds are set to address debt and enhance manufacturing capabilities, making it a potential value addition for investment portfolios seeking exposure in the auto industry.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova IPO team.)