Hero Motors

The Ticker Tales take

Hero Motors has been in the auto-components trade since 2001, designing and making transmission systems, gears and precision-engineered parts for two-wheeler, e-bike and electric-vehicle makers in India and overseas. The ₹1,000 crore issue is a roughly 60:40 split — ₹600 crore of fresh money going into the company and ₹400 crore to existing owners cashing out — priced at ₹79–84 a share. Day two closed with the book 3.58 times covered, led by retail at 5.34 times and big-ticket investors at 4.14 times, with institutions barely present at 0.07 times — they usually bid on the last day, so the final hours matter. The grey market premium had fallen away sharply, from ₹13 to ₹5, about 6% over the ₹84 issue price, and we cooled our call to a cautious Subscribe expecting a modest 6% pop. It listed on 23 September at ₹82 on NSE, down 2.4%, and ₹82.10 on BSE, down 2.3% — a soft, flat-to-negative open that undershot even our modest estimate. Buyers came in through the day, though, and it closed at ₹98.40 on NSE, up 17.1%, and ₹98.51 on BSE, up 17.3%. The call direction held by the close, but the size was well off — the weak open would have looked like a miss to anyone who sold early.