Hero Motors shares bounce back after weak market entry

Hero Motors shares made a weak market debut by listing at a discount of 2 per cent to the initial public offering price. The stock opened 2.26 per cent lower at 82.10 rupees on the BSE and 2.38 per cent lower at 82 rupees on the NSE. Before the listing, the grey market premium had already pointed to a discounted start based on an upper price band of 84 rupees. Despite the soft start, the stock later jumped 20 per cent to hit the upper circuit, rising 22 per cent from its lowest point of the day. Shivani Nyati, who is the Head of Wealth at Swastika Investmart, noted that the valuation at roughly 69 to 74 times price-to-earnings is much higher than the peer average of 50.2 times. She gave a neutral view on the stock and advised investors to wait for better price levels or stability before buying. The overall public issue was subscribed 6.66 times, drawing bids for 58.97 crore shares against 8.86 crore shares on offer. Looking at the categories, qualified institutional buyers subscribed 1.49 times, non-institutional investors subscribed 9.86 times, and retail individual investors subscribed 8.23 times. The bidding took place from September 16 to September 18, 2026. The issue included a fresh issue of shares worth up to 600 crore rupees and an offer of up to 400 crore rupees by O P Munjal Holdings and Hero Cycle. The price band was set between 79 and 84 rupees per share with a lot size of 178 shares. Before opening to the public, the company raised 244.98 crore rupees from 16 anchor investors on August 15, 2026, by allotting 2.91 crore shares at 84 rupees each. ICICI Securities served as the book running lead manager, while Kfin Technologies acted as the registrar.