New Delhi: Hero FinCorp, the financial arm of two-wheeler maker Hero MotoCorp, has submitted initial documents to Sebi to collect Rs 3,668 crore via an IPO. The suggested initial public offering includes a new offering of Rs 2,100 crore in equity shares and an Rs 1,568 crore Offer For Sale (OFS) by existing shareholder investors, as outlined in the Draft Red Herring Prospectus (DRHP) submitted on Wednesday. The individuals selling shares in the OFS are AHVF II Holdings Singapore II Pte. Apis Growth II (Hibiscus) Pte Ltd. Link Investment Trust, Ltd along with Vikas Srivastava and Otter Ltd.
The new funding will be utilized to boost the company's capital in order to address future funding requirements for loan activities. Hero FinCorp, a Non-Banking Financial Company, provides a wide range of financial products tailored mainly for retail, micro, small, and medium enterprise customers in India.
In March 2024, the NBFC company's assets under management (AUM) totaled Rs 51,821 crore, with retail and MSME loan sectors accounting for 65 pc and 21 pc of the total, respectively. Since its establishment in 1991, the company's clientele has increased to 1.18 crore by 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 lead managers of the upcoming IPO. The company's equity shares will be listed on both the BSE and NSE.
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