Hero FinCorp's pre-IPO round 2: Vattikuti Ventures invests Rs 50 crore, fresh issue size reduced to Rs 1,790 crore

Hero FinCorp IPO

Hero FinCorp, the parent Hero MotorCorp-owned NBFC, has raised Rs 50 crore from the venture capital firm Vattikuti Ventures, through the second pre-IPO round this week.

The company has allotted 3.57 lakh shares to Vattikuti Ventures LLC, owned by American-Indian entrepreneur and philanthropist Raj Vattikuti, at a price of Rs 1,400 per share, which amounted to Rs 50 crore.

"...an additional allotment of 3.57 lakh equity shares in relation to pre-IPO placement to the subscriber (Vattikuti Ventures) was made pursuant to the resolution of committee of directors dated July 8, 2025," Hero FinCorp said in a notice to investors on July 10.

Accordingly, the fresh issue size of the Hero FinCorp IPO will be reduced by Rs 50 crore, and the revised fresh issue size will be up to Rs 1,790 crore.

At a price of Rs 1,400 per share, the subsidiary of Hero MotoCorp is valued at Rs 25,014 crore.

Earlier in the first pre-IPO round, Hero Fincorp raised Rs 260 crore by allotting 18.57 lakh shares to 12 investors including Paramount Products, Shahi Exports, A P Properties, Yugul Chit Fund, Tiger Laser, and Virender Uppal.

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With this, the company has mobilised Rs 310 crore through two pre-IPO rounds, out of the Rs 420 crore it intends to raise through pre-IPO placement.

Hero FinCorp that offers retail, MSME and CIF (corporate and institutional finance) loans, and competes with listed peers like Bajaj Finance, Cholamandalam Investment & Finance Company, Poonawalla Fincorp, and Sundaram Finance has filed draft papers to raise funds up to Rs 3,668.1-crore via IPO on July 31 this year.

The IPO will be a combination of revised fresh issue of Rs 1,790 crore worth shares, and an offer-for-sale of shares worth Rs 1,568.1 crore by investors.

Investors AHVF II Holdings Singapore, Apis Growth, Link Investment Trust (through Vikas Srivastava), and Otter will be the selling shareholders in the offer-for-sale.

Hero FinCorp plans to utilise fresh issue proceeds for augmenting its Tier – I capital base to meet future capital requirements towards onward lending, arising out of the growth of business.

JM Financial, Axis Capital, BofA Securities India, HDFC Bank, HSBC Securities and Capital Markets (India), ICICI Securities, Jefferies India, and SBI Capital Markets will handle the Hero FinCorp IPO.