Hero FinCorp Raises ₹260 Crore in Pre-IPO Placement Round

Hero FinCorp Secures ₹260 Crore in Pre-IPO Round, Readjusts Public Offer Size

NBFC Giant Shows Strong Investor Confidence Ahead of Highly Anticipated Market Debut

Hero FinCorp, the financial services arm of two-wheeler major Hero MotoCorp, has successfully raised approximately ₹260 crore in a pre-IPO placement round. The funding demonstrates robust investor interest in the non-banking financial company (NBFC) as it gears up for its public listing, which has already received approval from the market regulator, SEBI.

Following this fund infusion, the company has revised the structure of its upcoming Initial Public Offering (IPO).

💰 Pre-IPO Placement Details:

• Total Funds Raised: ~₹260 Crore (₹259.99 Crore)
• Shares Allotted: 18.57 lakh equity shares
• Price Per Share: ₹1,400
• Transaction Date: Investment agreements were executed on June 5, 2025, and shares were allotted on June 13, 2025.
• Company Valuation (Pre-IPO): The placement values Hero FinCorp at approximately ₹23,174 crore.

🤝 Key Investors in the Round:

The placement saw participation from a diverse group of 12 investors, indicating broad-based confidence. Notable participants include:

• Shahi Exports: ₹69 crore
• RVG Jatropha Plantation: ₹50 crore
• Mohan Exports: ₹25 crore
• AP Properties: ₹22 crore
• Other Investors: Vivek Chaand Sehgal, Paramount Products, Tiger Laser Pte, Virender Uppal, Laksh Vaaman Sehgal, Renu Sehgal Trust, Yugal Chit Fund, and LC Hercules (Cayman).

📊 Revised IPO Structure:

The successful pre-IPO placement has led to a strategic adjustment in the IPO size.

• New Total IPO Size: ₹3,408 Crore (down from ₹3,668 Crore)
• Fresh Issue: ₹1,840 Crore (reduced from ₹2,100 Crore)
• Offer for Sale (OFS): ₹1,568 Crore (remains unchanged)

The funds from the fresh issue will be utilized to augment the company's capital base to meet future lending requirements and drive business growth.

📈 What This Means for the Upcoming IPO:

• Strong Signal: A successful pre-IPO round at a firm valuation is a positive indicator for the market, often boosting sentiment for the main public offering.
• Capital Adequacy: The early capital infusion strengthens the company's financial position even before the IPO proceeds are realized.
• Shareholders in OFS: Existing investors participating in the Offer for Sale include AHVF II Holdings Singapore II Pte. Ltd, Apis Growth II (Hibiscus) Pte. Ltd, Otter Ltd, and Link Investment Trust.

🏢 About Hero FinCorp:

• Business Focus: A diversified NBFC catering primarily to retail customers and MSMEs in India. Its loan book includes vehicle loans, personal loans, and business loans.
• Market Position: As of March 2024, the company managed assets worth ₹51,821 crore, with a customer base of 1.18 crore.
• Regulatory Status: Hero FinCorp received approval from the Securities and Exchange Board of India (SEBI) for its IPO in May 2025.