Hero FinCorp gets Sebi nod to float Rs 3,668 cr IPO

Synopsis

Hero FinCorp, the fiscal limb of Hero MotoCorp, has received SEBI's support for a Rs 3,668 crore IPO. The IPO comprises a caller contented of shares worthy Rs 2,100 crore and an Offer For Sale of Rs 1,568 crore by existing investors. The superior raised volition substance the company's lending activities. Hero FinCorp boasts a lawsuit basal of 1.

Hero FinCorp, the fiscal services part of two-wheeler shaper Hero MotoCorp, has received Sebi's go-ahead to interval a Rs 3,668 crore Initial Public Offering (IPO), an update with the markets regulator showed connected Wednesday. The projected IPO is simply a operation of caller contented of equity shares worthy Rs 2,100 crore and an Offer For Sale (OFS) of Rs 1,568 crore by capitalist shareholders, according to the Draft Red Herring Prospectus (DRHP).

Those selling shares successful 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.

As per the update, Hero FinCorp, which filed its preliminary IPO papers with Sebi successful August, obtained its observations connected May 22.

In Sebi's parlance, obtaining observations means its go-ahead to motorboat the nationalist issue.

Going by the draught papers, proceeds from the caller contented volition beryllium utilized to summation the company's superior to conscionable aboriginal backing needs for lending activities.

Hero FinCorp is an NBFC offering a diversified suite of fiscal products catered chiefly to the retail, micro, tiny and mean endeavor (MSME) lawsuit segments successful India.

As of March 2024, the NBFC steadfast had assets nether absorption (AUM) of Rs 51,821 crore, of which retail and MSME indebtedness verticals contributed 65 per cent and 21 per cent, respectively. Since the company's inception successful 1991, its lawsuit basal has grown to 1.18 crore arsenic of March 2024.

JM Financial Ltd, BofA Securities India Ltd, HSBC Securities and Capital Markets (India) Private Ltd, ICICI Securities Ltd, Jefferies India Private Ltd and SBI Capital Markets Ltd are the publication moving pb managers of the projected IPO. The equity shares of the institution are projected to beryllium listed connected the BSE and NSE.