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Hero FinCorp raises Rs 260 crore in pre-IPO funding round
- Hero FinCorp, the NBFC arm of Hero MotoCorp, raised Rs 260 crore in pre-IPO funding to reduce the fresh equity issue size.
- The company allotted 18.57 lakh shares at Rs 1,400 each to 12 investors, lowering the IPO's fresh equity component to Rs 1,840 crore.
- The total IPO size now stands at Rs 3,408.13 crore, including a Rs 1,568.13 crore offer-for-sale by existing shareholders.
- Major investors in the pre-IPO placement were Shahi Exports and RVG Jatropha Plantation.
- Investors also included Mohan Exports, AP Properties, Vivek Chaand Sehgal, Paramount Products, Tiger Laser Pte, and Virender Uppal.
- New allottees, except for specific individuals, are not connected with Hero FinCorp or related entities.
- Hero FinCorp, established in 1991, serves retail, MSME, and institutional borrowers with an AUM of Rs 51,821 crore as of March 2024.
- Proceeds from the fresh issue will enhance the company's Tier I capital base for expansion and lending needs.
- The OFS portion will allow exits for financial investors including AHVF II Holdings Singapore II Pte and others.
- Competing with listed NBFCs, Hero FinCorp aims to strengthen its position with the IPO funding.
- SEBI approved the IPO, managed by a consortium of lead managers like JM Financial, Axis Capital, and others.
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