Hero Fincorp looks to raise Rs 3,668 crore via IPO

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.

Hero Fincorp on August 1 said that it has filed draft prospectus with market regulator SEBI for Rs 3,688 crore initial public offering (IPO).

The offers contains fresh issue of shares worth Rs 2,100 crore. The financial services division of two-wheeler manufacturer, Hero MotoCorp, will also raise Rs 1,568 crore through an Offer For Sale (OFS), according to the Draft Red Herring Prospectus (DRHP).

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 future capital for onward lending, according to the company.

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 Rs 51,821 crore, of which retail and MSME loan verticals contributed 65 percent and 21 per cent, 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.