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  1. Hero FinCorp targets ₹3,668 crore IPO to boost lending and growth potential

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Hero FinCorp targets ₹3,668 crore IPO to boost lending and growth potential

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2 min read | Updated on August 01, 2024, 11:55 IST

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SUMMARY

Hero FinCorp, the financial arm of Hero MotoCorp, has filed for an Initial Public Offering (IPO) to raise ₹3,668 crore. The offering includes a fresh equity issue of ₹2,100 crore and an Offer for Sale (OFS) of ₹1,568 crore by existing investors, as per the Draft Red Herring Prospectus filed with SEBI. The proceeds from the fresh issue will bolster the company's capital for future lending.

Stock list

Those selling shares in the OFS are -- AHVF II Holdings Singapore II Pte. Ltd, Apis Growth II (Hibiscus) Pte. Ltd, Link Investment Trust (through Vikas Srivastava) and Otter Ltd.

Those selling shares in the OFS are -- AHVF II Holdings Singapore II Pte. Ltd, Apis Growth II (Hibiscus) Pte. Ltd, Link Investment Trust (through Vikas Srivastava) and Otter Ltd.

Hero FinCorp, the financial services division of two-wheeler manufacturer Hero MotoCorp, has filed preliminary papers with capital markets regulator SEBI to raise ₹3,668 crore through an Initial Public Offering (IPO).

The proposed IPO is a combination of a fresh issue of equity shares worth ₹2,100 crore and an Offer For Sale (OFS) of ₹1,568 crore by investor shareholders, according to the Draft Red Herring Prospectus (DRHP) filed on Wednesday.

Those selling shares in the OFS are -- AHVF II Holdings Singapore II Pte. Ltd, Apis Growth II (Hibiscus) Pte. Ltd, Link Investment Trust (through Vikas Srivastava) and Otter Ltd.

Proceeds from the fresh issue will be used to increase the company's capital to meet future funding needs for lending activities.

Hero FinCorp is a NBFC offering a diversified suite of financial products catered primarily to the retail, micro, small and medium enterprise (MSME) customer segments in India.

As of March 2024, the NBFC firm had assets under management (AUM) of ₹51,821 crore, of which retail and MSME loan verticals contributed 65% and 21%, respectively. Since the company's inception in 1991, its customer base has grown to 1.18 crore as of March 2024.

JM Financial Ltd, BofA Securities India Ltd, HSBC Securities and Capital Markets (India) Private Ltd, ICICI Securities Ltd, Jefferies India Private Ltd and SBI Capital Markets Ltd are the book running lead managers of the proposed IPO. The equity shares of the company are proposed to be listed on the BSE and NSE.

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