Hero FinCorp, the non-banking finance company backed by Hero MotoCorp, has raised Rs 260 crore in a pre-IPO funding round, adjusting its upcoming public offering. The funding was secured through private placement agreements signed with 12 investors on June 5, and shares were officially allotted on June 13 at Rs 1,400 per share.
The company originally planned a fresh issue of Rs 2,100 crore but has now reduced this to Rs 1,840 crore, thanks to the pre-IPO raise. Including the offer-for-sale (OFS) of Rs 1,568.13 crore by existing shareholders, the total IPO size now stands at Rs 3,408.13 crore.
Top Investor Participation
Major contributors to the funding round included Shahi Exports, which invested Rs 69 crore, and RVG Jatropha Plantation with Rs 50 crore. Other backers like Mohan Exports, AP Properties, and well-known individuals such as Vivek Chaand Sehgal and Virender Uppal also participated, subscribing to Rs 15 crore each.
Hero FinCorp clarified that most of these new investors are not affiliated with its management, promoter group, or any related entities. Only Vivek and Laksh Vaaman Sehgal are linked to group company Motherson Auto.
Founded in 1991
Hero FinCorp serves retail, MSME, and institutional clients across India. As of March 2024, its assets under management (AUM) stood at Rs 51,821 crore. Retail and MSME customers contribute nearly 86% of this AUM.
The funds raised from the IPO’s fresh issue will help strengthen the company’s Tier I capital base and support future business growth and lending activities. The OFS portion will provide exit opportunities for financial investors including Apis Growth II, AHVF II Holdings Singapore II, and Link Investment Trust.
IPO Details
Hero FinCorp received its IPO approval from SEBI recently. The IPO will be managed by leading investment banks such as JM Financial, Axis Capital, BofA Securities India, ICICI Securities, and SBI Capital Markets.
Hero FinCorp competes in the NBFC space with major players like Bajaj Finance, Poonawalla Fincorp, Sundaram Finance, and Cholamandalam Finance, aiming to strengthen its market position with the upcoming public issue.
