Autocomp maker Hero Motors’ Rs.1,000-Cr IPO gets 6.66x subscription

The INR 1,000-Cr initial public offering (IPO) of Noida-headquartered Hero Motors has been subscribed 6.66 times. The issue comprises a fresh issuance of equity shares, aggregating INR 600 crore, and an Offer-for-Sale (OFS) of shares worth INR 400 crore.Non-institutional investors subscribed 9.86 times, and retail investors booked 8.23 times their quota. The portion reserved for qualified institutional buyers (QIB) was subscribed 1.49 times. The company garnered nearly INR 300 crore from anchor investors before the IPO.The company is an automotive component manufacturer. Of the fresh issue proceeds, INR 190 crore will be used for the repayment of certain outstanding borrowings, while INR 200 crore will be used for purchasing equipment required for capacity expansion at the company's facility in Gautam Buddha Nagar, Uttar Pradesh. The remaining IPO funds will be used for acquisitions and other strategic initiatives.