Hero Motors shares hit 5% lower circuit; stock still up 42% from IPO price | Check key support level
Hero Motors shares hit a 5% lower circuit on Thursday, 22 October, despite remaining around 42% above their IPO price of ₹84. The stock opened at ₹118.90 apiece on the BSE and touched an intraday high of ₹119.30 before slipping to a low of ₹116.60.
Gaurav Arora, Head of Research at SAHI, said Hero Motors has corrected sharply from its October highs and is now approaching a crucial support level of ₹112.
According to Arora, the stock's price structure indicates a deeper retracement within the broader trend. However, a break below ₹112 could trigger further downside. He added that the stock's ability to hold this support level will be crucial in determining whether it stabilises or extends its decline in the coming sessions.
On 13 October, the company reported a 115.6% year-on-year jump in net profit to ₹10.2 crore for the quarter ended September 2026, compared with ₹4.73 crore in the corresponding quarter last year. Revenue from operations increased 24.9% to ₹319.3 crore from ₹255.7 crore.
Operating performance also strengthened, with earnings before interest, tax, depreciation and amortisation (EBITDA) surging 92% year-on-year to ₹35.9 crore from ₹18.7 crore. The EBITDA margin expanded to 11.3% from 7.3% a year earlier, marking an improvement of around 400 basis points.
Alongside its quarterly results, Hero Motors announced plans to acquire an additional 39% stake in its UK-based subsidiary, Hewland Engineering Ltd (HEL), for approximately £0.60 million in cash.
The proposed transaction involves the purchase of 8,039 equity shares from existing shareholders William Hewland and Siobhan Hewland. Following the acquisition, Hero Motors' stake in the company will increase from 51% to 90%.
The transaction is expected to be completed within approximately six months and does not require government or regulatory approvals.
Hero Motors specialises in designing, developing and manufacturing powertrain solutions for automotive original equipment manufacturers (OEMs). Its product portfolio serves two-wheelers, electric bicycles, off-road vehicles, electric and hybrid cars, and heavy-duty vehicles. The company operates across India, Europe, the US and ASEAN markets, serving customers including BMW, Ducati, Enviolo, Formula Motorsport, Hummingbird EV and HWA.
Hero Motors made its stock market debut on 23 September 2026, with shares listing at a discount to the IPO price before staging a sharp recovery.
On the BSE, the stock opened at ₹82.10, down 2.26% from the issue price of ₹84, but subsequently rebounded to close at ₹98.51, up 17.27% over the IPO price. On the NSE, shares debuted at ₹82, a discount of 2.38%, before ending at ₹98.40, marking a gain of 17.14% over the issue price.
At the time, the company's market capitalisation stood at ₹4,474.48 crore.
The company's ₹1,000-crore initial public offering (IPO) was subscribed 6.66 times on the final day of bidding. The issue comprised a fresh share sale worth ₹600 crore and an offer for sale (OFS) of ₹400 crore.
Of the fresh issue proceeds, ₹190 crore was earmarked for repaying or prepaying outstanding borrowings, while ₹200 crore was allocated towards purchasing equipment for capacity expansion at its facility in Gautam Buddha Nagar, Uttar Pradesh. The remaining proceeds were intended for potential acquisitions, strategic initiatives and general corporate purposes.
Dhanya Nagasundaram works as a Content Producer at LiveMint, specializing in news related to financial markets, stocks, and business. With over eight years of experience in journalism and content creation, she has honed her skills in data-driven reporting and market analysis. Her focus is on monitoring stock trends, initial public offerings (IPOs), corporate news, policy shifts, and larger economic trends that affect investors and market players. <br><br> At LiveMint, Dhanya consistently writes and produces articles that make complex financial topics accessible to readers. She keeps a close eye on equity markets, commodities, and macroeconomic indicators, assisting audiences in comprehending how global and domestic events influence investment perspectives. Her stories frequently underscore emerging trends within sectors, the IPO market, company earnings results, and market strategies pertinent to both retail and institutional investors. <br><br> Before her tenure at LiveMint, Dhanya accumulated a wealth of professional experience at various companies, including MintGenie, Informist, Cogenics, Chary Publications, KPMG, and the Royal Bank of Scotland. These positions allowed her to establish a solid foundation in financial research, reporting, and content creation. <br><br> Throughout her career, she has explored numerous subjects such as trading strategies, commodities, IPOs, wealth generation, corporate profits, and macroeconomic indicators. Her background in both financial journalism and corporate settings has given her the ability to tackle stories with analytical rigor while ensuring clarity for her audience. Through her contributions, Dhanya strives to deliver insightful, trustworthy, and investor-centric financial content.
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HomeMarketsStock MarketsHero Motors shares hit 5% lower circuit; stock still up 42% from IPO price | Check key support level
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