Hero Motors Shares Jump 20% After ₹281 Crore Block Deal, Can The Rally Hold?
Mumbai: Hero Motors shares climbed 20 percent on Thursday and were locked at the upper circuit, extending gains after a weak debut. The latest surge followed a block deal in its shares. About two crore 40 lakh shares changed hands at an average price of one hundred seventeen rupees each. The transaction was valued at roughly Rs 281 crore and represented about five point three percent of the…
Hero Motors' shares experienced a significant surge of 20% on Thursday, reaching the upper circuit, following a block deal in its shares. Approximately 2.4 million shares were traded at an average price of ₹117 each, resulting in a transaction value of around ₹281 crore, accounting for about 5.3% of the company's outstanding shares.
The company listed on Wednesday below its initial public offering (IPO) price of ₹84 per share, opening at ₹82 on the National Stock Exchange (NSE) and ₹82.10 on the Bombay Stock Exchange (BSE). Despite a weak debut, the shares recovered, closing at ₹98.40 on the NSE and ₹98.51 on the BSE. The company's IPO drew bids for six times the available shares, with non-institutional demand reaching nine times, retail eight times, and institutional demand one and a half times.
Hero Motors, a manufacturer of powertrain solutions for various vehicle types, raised ₹300 crore from anchor investors and earmarked ₹190 crore for debt repayment or redemption during the fresh issue. The remaining proceeds were allocated to capital expenditure and general purposes, with the company's products finding customers among global brands such as BMW and Ducati.
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