Hero MotoCorp and Munjal family-owned non-banking finance company Hero FinCorp has received Rs 260 crore in a pre-IPO round this week. This fund raising resulted into the reduction of fresh issue size to Rs 1,840 crore from Rs 2,100 crore planned earlier.
Post the pre-IPO placement, the initial public offering will comprise of fresh issuance of equity shares worth Rs 1,840 crore, and an offer-for-sale of Rs 1,568.13 crore by investors. Hence, the revised IPO size stands at Rs 3,408.13 crore, reducing from Rs 3,668.13 crore earlier which included planned pre-IPO placement worth Rs 420 crore.
As a part of pre-IPO round, the NBFC has executed investment agreements with 12 investors on June 5, and allotted 18.57 lakh shares to said investors on June 13, 2025, at a price of Rs 1,400 per share, which amounted to Rs 259.99 crore.
Shahi Exports and RVG Jatropha Plantation are the largest investors amongst them, acquiring Rs 69 crore, and Rs 50 crore worth shares of Hero FinCorp, respectively. Further, Mohan Exports are allotted Rs 25 crore worth shares, and AP Properties Rs 22 crore shares by the company.
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The firm has allotted Rs 15 crore worth shares each to Vivek Chaand Sehgal, Paramount Products, Tiger Laser Pte, and Virender Uppal. Laksh Vaaman Sehgal, Renu Sehgal Trust, Yugal Chit Fund and LC Hercules (Cayman) are other investors in the company through pre-IPO round.
New Delhi-based Hero FinCorp in the notice published in daily business newspapers on June 14 said except Vivek Chaand Sehgal, and Laksh Vaaman Sehgal, who are directors on the board of one of our group companies i.e. Motherson Auto, none of the allottees (of pre-IPO round) connected with the company, subsidiary, promoters, promoter group, directors, key managerial personnel, group companies and the directors or key managerial personnel of the subsidiary or the group company.
The company that offers retail, MSME (micro, small and medium enterprise), and corporate and institutional finance (CIF) loans will 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 the business.
The offer-for-sale money will go to selling shareholders like AHVF II Holdings Singapore II Pte, Apis Growth II (Hibiscus) Pte, Link Investment Trust (through Vikas Srivastava), and Otter.
Last month, Hero FinCorp that competes with listed entities like Bajaj Finance, Cholamandalam Investment & Finance Company, Poonawalla Fincorp, and Sundaram Finance has already received approval for its IPO from the capital markets regulator SEBI.
JM Financial, Axis Capital, BofA Securities India, HDFC Bank, HSBC Securities and Capital Markets (India), ICICI Securities, Jefferies India, and SBI Capital Markets, as book running lead managers, will handle the Hero FinCorp IPO.
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