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Hero Motors Shares Jump 20% After ₹281 Crore Block Deal
Hero Motors is a company that makes powertrain products for different types of vehicles.
Its shares rose by 20% on Thursday.
This happened after a large trade involving about 2.4 crore shares.
The trade was worth around ₹281 crore.
The shares had initially started trading below their IPO price of ₹84.
They later recovered and moved more than 40% above the IPO price.
The company’s IPO received bids for 6.66 times the number of shares offered.
Hero Motors plans to use some of the money raised to repay debt and fund new spending.
Hero Motors shares rose 20% on Thursday and hit the upper circuit after a large block deal.
Around 2.4 crore shares changed hands at an average price of ₹117, valuing the transaction at about ₹281 crore.
The block deal represented approximately 5.3% of Hero Motors’ outstanding shares.
The stock debuted below its ₹84 IPO price, opening at ₹82 on the NSE and ₹82.10 on the BSE.
Hero Motors’ ₹1,000 crore IPO was subscribed 6.66 times, with proceeds partly earmarked for debt repayment and capital expenditure.
- Who
- Hero Motors and investors involved in a large block transaction.
- What
- Hero Motors shares rose 20% after about 2.4 crore shares changed hands in a ₹281 crore block deal.
- Where
- The shares traded on the National Stock Exchange and the BSE in Mumbai.
- When
- The surge occurred on Thursday, after the company’s stock-market debut on Wednesday.
- Why
- The rise followed the large block deal as the stock continued recovering after its weak IPO debut.
Key facts
- Block deal value
- Approximately ₹281 crore
- Shares traded
- About 2.4 crore shares
- Average transaction price
- ₹117 per share
- Block deal size
- Approximately 5.3% of outstanding shares
- IPO size
- ₹1,000 crore
- IPO subscription
- 6.66 times the shares available
- Fresh issue use
- ₹190 crore earmarked to repay or redeem borrowings
Sources
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