Hero FinCorp approves Fundraise of Rs.4000 Crore via IPO
Hero FinCorp, a subsidiary of India’s largest two-wheeler maker Hero MotoCorp, has approved the fundraising via an IPO. Hero FinCorp will raise funds via an Initial Public Offering (IPO) which includes a fresh issue of shares amounting to Rs.4000 Crore. It also considers offers for sale by certain existing and eligible shareholders.
In a stock exchange filing, the Company said, “The Company’s Board of Directors has approved the proposal of an IPO (Initial Public Offering) of the equity shares, in the meeting which was held on May 29, 2024. The Face value of shares is Rs.10 each and comprises the fresh issue of Equity Shares which will go up to Rs.4,000 crore and also provides an Offer for Sale of Equity Shares by certain company’s existing and eligible shareholders.”
Earlier in Oct 2023, it was reported that Hero FinCorp has selected a group of 8 investment banks to launch this biggest IPO of Rs.4000 crore in 2024.
Hero FinCorp is a heterogeneous financial services company that provides two-wheeler financing, education loans, finance affordable housing loans and lends to the SME sector. This lending company have it presence in 4,000 urban and rural areas across India and within the network of Hero MotoCorp, it reached to 2,000 retail financing touchpoints.
40% stakes of Hero Fincorp are owned by Hero MotoCorp and the Munjal family (its promoters) holds 35-39% of shares. The rest % of the shares are acquired by private equity investors like Apollo Global, Credit Suisse, ChrysCapital and some dealers of HeroMoto Corp.
