Hero Fincorp aims to raise Rs 3,668 Crore through IPO

Hero FinCorp, the financial services division of two-wheeler manufacturer Hero MotoCorp, has filed preliminary papers with the Securities and Exchange Board of India (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.

The selling shareholders 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 non-banking financial company (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 had assets under management (AUM) of ₹51,821 crore, of which retail and MSME loan verticals contributed 65% and 21%, respectively.

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 for the proposed IPO. The equity shares are proposed to be listed on the BSE and NSE.

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