Hero Fincorp Unlisted Shares
Hero FinCorp Files Draft Papers To Raise Rs 3,668 Crore Via IPO
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Hero Fincorp Files DRHP with SEBI for IPO to Raise Rs 3,668 Crore.
Expert Analysis:
IPO Details:
Hero Fincorp Ltd. an associate company of Hero MotoCorp., has filed its preliminary papers with SEBI to raise Rs 3,668 crore Via IPO.
The IPO includes a fresh issue of Rs 2,100 crore and an offer-for-sale of Rs 1,568 crore, according to the DRHP.
Selling Shareholders in OFS:
AHVF II Holdings Singapore II Pte., Apis Growth II (Hibiscus) Pte., Link Investment Trust, and Otter Ltd. will be the investors selling shareholders under the OFS.
AHVF II Holdings holds about 10.34% stake, while Apis Growth holds 1.24% stake in the non-banking financial lender.
IPO Use: Proceeds from the fresh issue will be used to increase the company's capital to meet future funding, with equity shares of the company to be listed on BSE and NSE.
Financial Product Offerings: The non-banking financial company provides a range of financial products primarily to retail and micro, small, and medium enterprises (MSME) segments, including vehicle, personal, and mortgage loans.
Assets Under Management (AUM):
As of FY24, Assets Under Management (AUM) stand at Rs 51,820.8 crore.
which retail and MSME loan verticals contributed 65.08% and 20.80%, respectively.
Brand and Corporate Heritage: The NBFC operates under the 'Hero' brand, benefiting from the long-standing corporate heritage, strong track record, and reputation of its parent company, Hero MotoCorp, as noted in the DRHP.
IPO Objective:
Hero Fincorp's IPO seeks to raise Rs 3,668 crore to strengthen its capital for future lending.
IPO Breakdown:
The offering includes a fresh issue of Rs 2,100 crore and an offer-for-sale of Rs 1,568 crore.
AUM and Focus:
With AUM of Rs 51,820.8 crore, our focus on retail and MSME loans accounts for 85.88% of the totalAUM.
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