Hero FinCorp Raises ₹260 Crore In Pre-IPO Round, Cuts Fresh Issue Size To ₹1,840 Crore
New Delhi: Hero FinCorp, the financial services arm of Hero MotoCorp, has raised Rs 260 crore from investors ahead of its initial public offering (IPO). This early fundraising took place through a pre-IPO placement round.
Because of this fresh fund infusion, Hero FinCorp has decided to reduce the size of its fresh issue to Rs 1,840 crore from Rs 2,100 crore planned earlier. The total IPO size now stands at Rs 3,408 crore. This also includes an offer-for-sale (OFS) worth Rs 1,568 crore by existing shareholders. Earlier, the total IPO size was set at Rs 3,668 crore.
Investors selling their shares in the OFS include AHVF II Holdings Singapore II Pte. Ltd, Apis Growth II (Hibiscus) Pte. Ltd, Link Investment Trust (via Vikas Srivastava), and Otter Ltd.
Hero FinCorp’s pre-IPO round was conducted on June 5. The company allotted 18.57 lakh shares at Rs 1,400 per share, collecting a total of Rs 259.99 crore on June 13. In total, 12 investors took part in this round.
Some of the major investors include Shahi Exports (Rs 69 crore), RVG Jatropha Plantation (Rs 50 crore), Mohan Exports (Rs 25 crore), and AP Properties (Rs 22 crore). Other investors include Vivek Chaand Sehgal, Paramount Products, Tiger Laser Pte, Virender Uppal, Laksh Vaaman Sehgal, Renu Sehgal Trust, Yugal Chit Fund, and LC Hercules (Cayman).
Hero FinCorp had already received approval from market regulator SEBI in May to go ahead with its IPO plans.
As per its draft papers, the money raised through the fresh issue will be used to increase the company’s capital base. This will help it meet future loan funding needs.
Hero FinCorp is a non-banking financial company (NBFC). It offers loans to retail and MSME customers. As of March 2024, it had total assets under management (AUM) of Rs 51,821 crore. Around 65 percent of this came from retail loans and 21 percent from MSMEs. The company had 1.18 crore customers as of March 2024.
Hero FinCorp raised Rs 260 crore in a pre-IPO round, cutting its fresh issue size to Rs 1,840 crore. The total IPO size is now Rs 3,408 crore. Funds will support future lending. The company focuses on retail and MSME loans.
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