SEBI Approves Hero FinCorp Rs 3,668 Crore IPO

Hero FinCorp, the non-banking financial arm of Hero MotoCorp, has received approval from the Securities and Exchange Board of India (SEBI) for its Rs 3,668 crore initial public offering (IPO), consisting of a Rs 2,100 crore fresh equity issue and a Rs 1,568 crore offer-for-sale by existing investors. The fresh issue proceeds will be used to strengthen the company’s capital base and support its lending activities targeting retail customers and MSMEs across India. Key investors selling stakes in the offer-for-sale include AHVF II Holdings Singapore II Pte, Apis Growth II (Hibiscus) Pte, Link Investment Trust, and Otter, with backing from Apollo Global Management, ChrysCapital, and Apis Partners. Despite a decline in consolidated net profit in the financial year ended March 2025, Hero FinCorp remains a significant player in financing two-wheelers, personal loans, SME, and commercial loans, leveraging its wide presence and association with Hero MotoCorp. The IPO is managed by prominent financial institutions including JM Financial, BofA Securities India, HSBC Securities, ICICI Securities, Jefferies India, and SBI Capital Markets, and is expected to attract strong interest amid India's recovering NBFC sector and rising credit demand. Post-listing, Hero MotoCorp will continue to hold a significant stake, while the offer-for-sale enables early investors to monetize their holdings.