Hero FinCorp Raises ₹260 Crore in Pre-IPO Placement, Cuts Fresh Issue Size

Hero FinCorp, the financial services arm of Hero MotoCorp, raised Rs 260 crore in a pre-IPO placement round, leading to a reduction in the fresh issue size from Rs 2,100 crore to Rs 1,840 crore. The total IPO size has now been revised to Rs 3,408 crore, including a Rs 1,568 crore offer-for-sale (OFS) by existing investors such as AHVF II Holdings Singapore II Pte. Ltd, Apis Growth II (Hibiscus) Pte. Ltd, Link Investment Trust, and Otter Ltd. The pre-IPO round involved 12 investors allotting 18.57 lakh shares at Rs 1,400 per share, with major participants including Shahi Exports, RVG Jatropha Plantation, Mohan Exports, and AP Properties. Hero FinCorp received regulatory approval from SEBI in May to proceed with its IPO, which aims to increase the company's capital base to support future lending activities. As a non-banking financial company (NBFC), Hero FinCorp serves retail and MSME customers, managing Rs 51,821 crore in assets as of March 2024 and catering to over 1.18 crore customers. The IPO proceeds will help the company meet funding needs for expanding its loan portfolio primarily focused on retail and MSME segments.