Hero Motors shares hit 10% lower circuit; stock still up 56% from listing price

The latest market report highlights that Hero Motors shares hit the 10 percent softer circuit in Monday's market session amid earnings booking, days after the firm's market debut.

Shares of the firm were quoted at Rs 127.67 per share on the BSE, down 10 percent, the lowest permissible trading limit for the session.

Despite the decline, the stock was still up 55.7 percent from its stock-exchange debut price of Rs 82 per share.

The stock opened at Rs 82 on the NSE, marking a 2.38 percent discount to the IPO price of Rs 84 per share. On the BSE, Hero Motors shares debuted at Rs 82.10, translating into a 2.26 percent discount to the offering price on September 23.

Hero Motors had set the IPO price range at Rs 79-84 per share. The Rs 1,000-crore offering comprised a fresh offering of shares worth Rs 600 crore and an offer-for-sale (OFS) component of Rs 400 crore.

Hero Motors stated it plans to use Rs 190 crore from the fresh offering towards repayment or prepayment of certain borrowings.

Another Rs 200 crore has been earmarked for purchasing equipment for capacity expansion at its facility in Gautam Buddha Nagar, Uttar Pradesh.

The remaining proceeds will be used to fund inorganic expansion through unidentified acquisitions and strategic initiatives, besides general corporate purposes.