Hero FinCorp Limited’s Board of Directors approved a plan on May 29, 2024, to make its shares available to the public for the first time. The Company plans to issue shares and raise Rs 4,000 crore through this Initial Public Offering (IPO). It will also allow existing shareholders to sell some of their shares.

Hero FinCorp is the financial services arm of Hero MotoCorp, a two-wheeler maker in India. This move is a testament to the Company’s strong market position and potential.

Hero FinCorp is a diversified financial services company that offers two-wheeler financing, home loans in the affordable housing segment, education loans, and small and medium enterprise sector loans.

The Company operates in over 4,000 cities and towns across India and has nearly 2,000 retail financing touchpoints within Hero MotoCorp’s network.

Hero MotoCorp owns a 40% stake in Hero FinCorp, while the promoters and the Munjal family hold 35-39%. Private equity investors like Apollo Global, ChrysCapital, Credit Suisse, and some dealers of Hero MotoCorp hold the remaining stake.

The Board of Directors of Hero FinCorp has approved the Initial Public Offering (IPO) of equity shares with a face value of Rs 10 each, comprising a fresh issue of Equity Shares aggregating up to Rs 40,000 million and an Offer for Sale of Equity Shares by certain existing and eligible shareholders of the Company.

This is subject to market conditions, receipt of applicable approvals, regulatory clearances, and other considerations.