Hero FinCorp Secures SEBI Approval for Rs 3,668 Crore IPO
Hero FinCorp, a financial services arm of Hero MotoCorp, has obtained SEBI's approval for an Rs 3,668 crore IPO, which includes a fresh equity issue of Rs 2,100 crore and an Offer For Sale of Rs 1,568 crore. The proceeds will bolster future funding for lending activities.
- Country:
- India
Hero FinCorp, the financial services division under Hero MotoCorp, has secured approval from the Securities and Exchange Board of India (Sebi) to launch a Rs 3,668 crore Initial Public Offering (IPO). This move, detailed in the markets regulator's update on Wednesday, marks a significant step for the company.
The IPO is structured as a combination of a fresh equity issuance worth Rs 2,100 crore and an Offer For Sale (OFS) amounting to Rs 1,568 crore by investor shareholders. The Draft Red Herring Prospectus (DRHP) outlines that entities such as AHVF II Holdings Singapore II Pte. Ltd and Apis Growth II (Hibiscus) Pte. Ltd are offering shares in the OFS.
An official filing from August indicated Hero FinCorp's intent to proceed, with formal observations received on May 22. The fundraising aims to augment the company's capital base to address future funding requirements for its lending operations. With a rich product portfolio, Hero FinCorp targets retail and MSME segments, managing assets worth Rs 51,821 crore as of March 2024.
(With inputs from agencies.)
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