Hero FinCorp has received the Securities and Exchange Board of India’s (SEBI) approval to launch its highly anticipated ₹3,668 crore Initial Public Offering (IPO). This regulatory nod follows months of preparation and marks a significant milestone for the company as it prepares to enter the public markets. The Hero FinCorp IPO will consist of two main components: a fresh issue of shares worth ₹2,100 crore and an offer for sale (OFS) by existing shareholders amounting to ₹1,568 crore. Major 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.
Hero FinCorp, established in 1991, has grown into a leading NBFC with a diverse portfolio of financial products tailored primarily for retail and micro, small, and medium enterprise (MSME) customers. As of March 2024, the company reported assets under management (AUM) of ₹51,821 crore, with retail loans accounting for 65% and MSME loans contributing 21% of the total AUM. The company’s extensive reach is evident in its network of over 4,200 dealer touchpoints spanning more than 2,000 Indian cities and covering 18,603 pin codes, making it one of the most accessible NBFCs in the country.
The upcoming IPO is expected to provide a significant boost to Hero FinCorp’s capital adequacy, enabling the company to pursue its ambitious growth strategies, including the expansion of its loan book and the diversification of its product offerings. The company also aims to enhance its digital capabilities and strengthen its balance sheet, reducing reliance on debt and improving operational flexibility. The equity shares of Hero FinCorp are proposed to be listed on both the BSE and NSE, with a consortium of leading 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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With this SEBI approval, Hero FinCorp is set to make a strong debut in the Indian capital markets, leveraging its established brand, extensive reach, and diversified loan portfolio to attract investors and fuel its next phase of growth. The IPO is set to be one of the largest NBFC public issues in recent times, reflecting the company’s scale, credibility, and growth potential in the dynamic Indian financial services landscape.
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