7 hrs ago
Hero Motors IPO Ends 6.66x Subscribed With Flat GMP
Hero Motors offered shares to the public in an IPO.
The IPO closed on September 18.
Investors placed bids for more than six times the number of shares available.
Retail and non-institutional investors showed especially strong interest.
The company set the share price between Rs 79 and Rs 84.
Its grey market premium was flat, suggesting no expected gain or loss at the upper price.
One brokerage recommended subscribing for the long term.
The shares are expected to be listed on September 23.
Hero Motors’ Rs 1,000 crore IPO was subscribed 6.66 times on September 18.
The issue attracted 16.26 lakh applications and bids worth Rs 4,904.79 crore.
Non-institutional investors subscribed 9.86 times, while retail investors subscribed 8.23 times.
The price band was Rs 79–84 per share, with Rs 600 crore from fresh shares and Rs 400 crore through an offer for sale.
The grey market premium remained flat, implying an indicative listing price of Rs 84, while listing is expected on September 23.
- Who
- Hero Motors and investors, including qualified institutions, non-institutional investors and retail individuals.
- What
- Hero Motors’ Rs 1,000 crore IPO was subscribed 6.66 times on its final bidding day.
- Where
- The shares are expected to list on the NSE and BSE.
- When
- Bidding closed on September 18; allotment is expected by September 21, refunds and share credits by September 22, and listing on September 23.
- Why
- The issue drew investor demand, particularly from non-institutional and retail investors.
Positive Long-Term View
Valuation And Market-Caution View
Investment outlook
Positive Long-Term View
Anand Rathi Research Team rated the issue “Subscribe for Long Term.”
Valuation And Market-Caution View
At the upper price band, the company was valued at a P/E of 92.6x and an EV/EBITDA of 34.38x based on FY26 earnings, indicating a high valuation.
Expected listing performance
Positive Long-Term View
Strong subscription demand, especially from retail and non-institutional investors, reflected healthy interest in the IPO.
Valuation And Market-Caution View
The flat grey market premium indicated an expected listing price of Rs 84, implying no profit or loss per lot; the article also cautioned that GMP is not an actual listing-price guarantee.
Key facts
- Issue size
- Rs 1,000 crore
- Price band
- Rs 79 to Rs 84 per share
- Overall subscription
- 6.66 times
- Total applications
- 16.26 lakh
- Total bids
- Rs 4,904.79 crore
- Grey market premium
- Flat; indicative listing price of Rs 84
- Expected listing date
- September 23 on the NSE and BSE
Quotes
Anand Rathi Research Team
Brokerage research team providing commentary on the IPO valuation
“At the upper price band company is valuing at P/E of 92.6x and EV/EBITDA of 34.38x with to its FY26 earnings and market cap of Rs.3,815.4 crore post issue of equity shares.”
financialexpress.com
Sources
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