Hero Fincorp Ltd. filed DRHP with SEBI for Rs 3,668 Cr IPO

Hero FinCorp, the financial services division of two-wheeler manufacturer Hero MotoCorp, has filed preliminary papers with the capital markets regulator SEBI to raise Rs 3,668 Cr through an Initial Public Offering (IPO).

The proposed IPO includes a fresh issue of equity shares worth Rs 2,100 Cr and an Offer For Sale (OFS) of Rs 1,568 Cr by investor shareholders, as mentioned in the Draft Red Herring Prospectus (DRHP) filed on Wednesday.

The shareholders selling shares in the OFS are AHVF II Holdings Singapore II Pte. Ltd, Apis Growth II (Hibiscus) Pte. Ltd, Link Investment Trust (through Vikas Srivastava), and Otter Ltd.

The proceeds from the fresh issue will be utilized to increase the company's capital to meet future funding needs for lending activities.

Hero FinCorp is a Non-Banking Financial Company (NBFC) offering a diversified suite of financial products primarily catering 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 Cr, with retail and MSME loan verticals contributing 65 percent and 21 percent, respectively. The company's customer base has grown to 1.18 crore as of March 2024 since its inception in 1991 and it posted a topline of Rs 8,291 Cr and a bottom line of Rs. 637 Cr.