Hero FinCorp Gets SEBI Nod for Rs 3,668 Crore IPO
Hero FinCorp, one of India’s leading non-banking financial companies (NBFCs), has received approval from the Securities and Exchange Board of India (SEBI) to launch its much-awaited Initial Public Offering (IPO) worth Rs 3,668 crore. The regulatory green light comes after months of planning and signals a major step forward in the company’s capital market journey.
The IPO will comprise a fresh issue of equity shares worth Rs 2,100 crore, along with an offer for sale (OFS) of Rs 1,568 crore by existing shareholders. Key investors participating in the OFS include AHVF II Holdings Singapore II Pte. Ltd, Apis Growth II (Hibiscus) Pte. Ltd, Link Investment Trust (via Vikas Srivastava), and Otter Ltd.
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Founded in 1991, Hero FinCorp has built a strong presence in India’s lending ecosystem, catering primarily to retail and MSME customers. As of March 2024, the company reported an impressive Assets Under Management (AUM) of Rs 51,821 crore, with retail loans contributing 65% and MSME loans accounting for 21%.
The company’s distribution network is among the most extensive in the industry, with over 4,200 dealer touchpoints spread across 2,000+ cities and 18,603 pin codes, ensuring deep penetration into India’s urban and rural markets.
The fresh proceeds from the IPO will be used to boost capital adequacy, expand the loan book, and diversify product offerings. Hero FinCorp also plans to invest in digital transformation, aiming to enhance customer experience and improve operational efficiency. Strengthening the balance sheet and reducing debt dependence are also key priorities.
The equity shares are proposed to be listed on both the BSE and NSE, with a stellar team of financial institutions including JM Financial, BofA Securities, HSBC, ICICI Securities, Jefferies India, and SBI Capital Markets acting as the book-running lead managers.
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This IPO is poised to be one of the largest NBFC public issues in recent years, underscoring Hero FinCorp’s market credibility, financial strength, and investor confidence. The offering comes at a time when India’s credit ecosystem is witnessing strong demand for retail and MSME financing, making Hero FinCorp’s proposition all the more relevant.
With its trusted brand lineage, widespread presence, and a robust loan portfolio, Hero FinCorp is well-positioned to capitalise on future growth opportunities and deliver long-term value to stakeholders.
Disclaimer: This post is for general informational purposes only. It does not constitute financial advice. Please consult a qualified professional before making financial decisions.
