Hero FinCorp, the financial services arm of Hero MotoCorp, has filed its Draft Red Herring Prospectus (DRHP) with SEBI for its initial public offering (IPO).
Hero FinCorp filed its Draft Red Herring Prospectus (DRHP) for its IPO, aiming to raise ₹3,668 crore. The IPO will include a fresh issue of ₹2,100 crore and an offer for sale (OFS) of ₹1,568 crore by existing shareholders.
Hero FinCorp Key Details of the IPO:
- IPO Size: ₹3,668 crore (marginally scaled down from the initially planned ₹4,000 crore)
- Fresh Issue: ₹2,100 crore
- Offer for Sale (OFS): ₹1,568 crore by investor shareholders including AHVF II Holdings, Apis Growth, Link Investment Trust, and Otter.
- Purpose of Funds: The funds raised from the fresh issue will be utilized to augment the company’s capital base and to meet future capital requirements, primarily for onward lending activities.
Hero FinCorp is a leading non-banking financial company (NBFC) in India, and a subsidiary of Hero MotoCorp. They offer a diverse range of financial products and services to both retail and corporate customers, specializing in retail and MSME financing.
Hero FinCorp major Products and Services:
- Retail Financing: Two-wheeler loans, used car loans, personal loans, and loans against property.
- SME Financing: Loans for working capital, business expansion, and equipment financing.
- Corporate Lending: Structured finance solutions for large corporations.
Hero FinCorp has been investing heavily in technology to enhance customer experience and improve operational efficiency. They have launched a mobile app for loan servicing and have introduced several digital initiatives to streamline the loan application process.
Additional Information: The IPO date, price band, and lot size are yet to be announced. Hero MotoCorp currently holds a 39.56% stake in Hero FinCorp, while the promoter Munjal family holds about 35%.