20 March 2025
The Securities and Exchange Board of India (SEBI) has held back the IPO papers of Hero FinCorp for nearly eight months and those of HDB Financial Services, a HDFC Bank subsidiary, for four months, the report cited sources as saying.
The market regulator delayed the as the share sales by these two large non-banking financial firms may inadvertently violate rules related to the sale of pre-IPO shares, the report said.
Moneycontrol couldn't verify the report independently.
Under the Companies Act, unlisted companies cannot add more than 200 shareholders in a financial year. These firms cannot also sell shares via private placement to more than 50 persons at a time. If shares are issued through private placement to public shareholders within six months, then it is considered a public issue.
A Hero Fincorp spokesperson also denied rule violation. The company has not raised funds beyond the allowed threshold of 200 investors at a time, the report cited the spokesperson as saying.
ChrysCapital-backed Hero Fincorp filed its draft documents on July 31 to raise Rs 3,668 crore. The IPO includes a primary fundraise of Rs 2,100 crore, which the lender plans to use for the augmentation of its Tier–I Capital base to meet its capital requirements towards onward lending.
The Securities and Exchange Board of India (SEBI) has held back the IPO papers of Hero FinCorp for nearly eight months and those of HDB Financial Services, a HDFC Bank subsidiary, for four months, the report cited sources as saying.
The market regulator delayed the as the share sales by these two large non-banking financial firms may inadvertently violate rules related to the sale of pre-IPO shares, the report said.
Moneycontrol couldn't verify the report independently.
Under the Companies Act, unlisted companies cannot add more than 200 shareholders in a financial year. These firms cannot also sell shares via private placement to more than 50 persons at a time. If shares are issued through private placement to public shareholders within six months, then it is considered a public issue.
A Hero Fincorp spokesperson also denied rule violation. The company has not raised funds beyond the allowed threshold of 200 investors at a time, the report cited the spokesperson as saying.
ChrysCapital-backed Hero Fincorp filed its draft documents on July 31 to raise Rs 3,668 crore. The IPO includes a primary fundraise of Rs 2,100 crore, which the lender plans to use for the augmentation of its Tier–I Capital base to meet its capital requirements towards onward lending.
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