Hero FinCorp, the financial services vertical of Hero MotoCorp, has filed its draft papers with SEBI. The company will raise Rs 3,668 crore through an initial public offering.

The IPO comprises the fresh issuance of equity shares worth Rs 2,100 crore and an offer-for-sale of shares to the tune of Rs 1,568 crore by investor shareholders.

Under the OFS, AHVF II Holdings, Apis Growth II, Link Investment Trust, and Otter Ltd. will sell shares. Money realised from the fresh issue would be used to capitalise the company for future lending activities.

Hero FinCorp is an NBFC providing a range of financial products to retail and MSME customers.

It had assets under management of Rs 51,821 crore as of March this year, with 65% coming from retail loans and 21% from MSME loans. The customer base has increased to 1.18 crore as of March 2024 from its inception in 1991.

The book-running lead managers for the IPO are JM Financial, Axis Capital, BofA Securities India, HDFC Bank, HSBC Securities and Capital Markets, ICICI Securities, Jefferies India, and SBI Capital Markets.

Link Intime India is the registrar for the IPO. The equity shares are proposed to be listed on both the BSE and NSE.

Hero MotoCorp owns 41% of Hero FinCorp. Promoters, the Munjal family, own about 38%. Private equity investors like Credit Suisse, Apollo Global, and a few dealers of Hero MotoCorp have a residual stake.

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