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Hero Fincorp announced on August 1 that it has filed a draft prospectus with market regulator SEBI for a Rs 3,668 crore initial public offering (IPO). The offering includes a new issue of shares worth Rs 2,100 crore and an Offer for Sale (OFS) totaling Rs 1,568 crore.The financial services division of two-wheeler manufacturer Hero MotoCorp will use proceeds from the fresh issue to increase the company’s future capital for onward lending, according to the Draft Red Herring Prospectus (DRHP).
The Offer for Sale (OFS) companies is AHVF II Holdings Singapore II Pte. Ltd, Apis Growth II (Hibiscus) Pte. Ltd, Link Investment Trust, and Otter Ltd. Hero FinCorp is a non-banking financial company (NBFC) offering a diversified suite of financial products primarily to the retail, micro, small, and medium enterprise (MSME) customer segments in India. As of March 2024, the NBFC firm had assets under management (AUM) of Rs 51,821 crore, with retail and MSME loan verticals contributing 65 percent and 21 percent, respectively. Since starting in 1991, the company has expanded its customer base 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 serving as the book running lead managers for the proposed IPO. The company’s equity shares are scheduled to be listed on both the BSE and NSE.