Hero FinCorp Raises Rs 260 Crore in Pre-IPO Round, Reduces Fresh Issue Size to Rs 1,840

Hero FinCorp, the financial services arm of Hero MotoCorp, has secured Rs 260 crore from investors in a pre-IPO placement round held ahead of its upcoming initial public offering. As a result of this early fundraising, the company has revised its fresh issue size to Rs 1,840 crore, down from the previously planned Rs 2,100 crore.

With this adjustment, the total IPO size is now Rs 3,408 crore. This includes a Rs 1,568 crore offer-for-sale by existing shareholders. The original total IPO size was pegged at Rs 3,668 crore.

Among the shareholders participating in the offer-for-sale are AHVF II Holdings Singapore II Pte Ltd, Apis Growth II (Hibiscus) Pte Ltd, Link Investment Trust (through Vikas Srivastava), and Otter Ltd.

The pre-IPO placement took place on June 5, with Hero FinCorp allotting 18.57 lakh shares at Rs 1,400 per share, raising a total of Rs 259.99 crore. The share allotment was finalized on June 13, with participation from 12 investors.

Notable participants in the pre-IPO round included Shahi Exports, investing Rs 69 crore, RVG Jatropha Plantation with Rs 50 crore, Mohan Exports at Rs 25 crore, and AP Properties contributing Rs 22 crore. Other investors included Vivek Chaand Sehgal, Paramount Products, Tiger Laser Pte, Virender Uppal, Laksh Vaaman Sehgal, Renu Sehgal Trust, Yugal Chit Fund, and LC Hercules (Cayman).

Hero FinCorp received approval from the Securities and Exchange Board of India (SEBI) in May to proceed with its IPO. As outlined in its draft papers, the company intends to use the funds raised through the fresh issue to strengthen its capital base and support future loan disbursement.

Hero FinCorp is a non-banking financial company (NBFC) offering loan products to retail and MSME customers. As of March 2024, the company had assets under management worth Rs 51,821 crore, with 65 percent from retail loans and 21 percent from MSME loans. The firm served 1.18 crore customers by the end of March 2024.