Hero FinCorp raises ₹260 crore in pre-IPO round from investors

Hero FinCorp, the financial services arm of Hero MotoCorp, has completed its pre-ipo placement round. The NBFC has raised ₹260 crore, which has reduced the previously planned fresh issue size to ₹1,840 crore from ₹2,100 crore. 

The total offer size now stands at ₹3,408 crore, including ₹1,568 crore offer for sale from existing shareholders, namely AHVF II Holdings Singapore II Pte. Ltd., Apis Growth II (Hibiscus) Pte. Ltd., Link Investment Trust (through Vikas Srivastava), and others. 

Investor Participation and Share Issuance

In the pre-ipo round, the company allotted 18.57 lakh shares at ₹1,400 per share to 12 investors. Shahi Exports allotted shares worth ₹69 crore, followed by RVG Jatropha Plantation (₹50 crore), Mohan Exports (₹ 25 crore), and AP Properties (₹22 crore).

IPO Details and SEBI Approval

On May 22, Hero Fincorp got SEBI approval to float an IPO. According to the DRHP, the company intends to use the funds to augment its Tier I Capital base to meet future capital requirements and lending activities. 

Talking about financial position, the NBFC’s total revenue from operations increased by 29.51% to ₹8,290.90 crore in Fiscal 2024 from ₹6,401.59 crore in Fiscal 2023.

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