AInvest Newsletter
Daily stocks & crypto headlines, free to your inbox
Hero FinCorp Raises ₹260 Crore from Investors in Pre-IPO Placement Round, Reduces Fresh Issue Size to ₹1,840 Crore.
ByAinvest
Sunday, Jun 15, 2025 12:25 am ET1min read
Hero FinCorp, a financial services division of Hero MotoCorp, has raised ₹260 crore in a pre-IPO placement round, reducing the fresh issue size to ₹1,840 crore from ₹2,100 crore. The total IPO size now stands at ₹3,408 crore, including a ₹1,568 crore offer-for-sale by existing investors. Proceeds from the fresh issue will be used to increase the company's capital to meet future funding needs for lending activities.
Title: Hero FinCorp Secures ₹260 Crore in Pre-IPO Round, Reduces Fresh Issue SizeHero FinCorp, a financial services division of Hero MotoCorp, has successfully raised ₹260 crore in a pre-IPO placement round. This significant funding round has resulted in a reduction of the fresh issue size from ₹2,100 crore to ₹1,840 crore. The total IPO size now stands at ₹3,408 crore, which includes a ₹1,568 crore offer-for-sale by existing investors [1].
The pre-IPO placement, executed on June 5, involved the issuance of 18.57 lakh shares at a price of ₹1,400 per share, amounting to ₹259.99 crore. Among the investors, Shahi Exports and RVG Jatropha Plantation were the largest, acquiring shares worth ₹69 crore and ₹50 crore, respectively. Other notable investors include Mohan Exports, AP Properties, Vivek Chaand Sehgal, and Paramount Products [1].
The funds raised in the pre-IPO round will be utilized to augment Hero FinCorp's Tier-I capital base, which is crucial for meeting future capital requirements towards onward lending. The company's offer-for-sale money will go to selling shareholders like AHVF II Holdings Singapore II Pte, Apis Growth II (Hibiscus) Pte, Link Investment Trust (through Vikas Srivastava), and Otter [2].
The pre-IPO placement is a strategic move ahead of Hero FinCorp's long-pending IPO, which received SEBI approval on May 22, 2025. The IPO will comprise a fresh issuance of ₹2,100 crore and an offer-for-sale of ₹1,568.13 crore, making the revised IPO size ₹3,408.13 crore [2].
Despite facing regulatory scrutiny and asset quality issues, Hero FinCorp's ability to raise ₹259.99 crore in a volatile credit environment is a positive sign for its long-term business prospects. However, the road to public market success will depend on the company's ability to manage asset quality and improve profitability in the coming quarters [2].
References:
[1] https://www.moneycontrol.com/news/business/ipo/nbfc-hero-fincorp-gets-rs-260-crore-in-pre-ipo-round-reduces-fresh-issue-size-13121533.html
[2] https://ipocentral.in/hero-fincorp-pre-ipo-placement-seals-260-cr/
Ainvest News articles are AI-generated using advanced large language model (LLM) technology designed to analyze and synthesize publicly available data and news. While AI tools assist in producing initial drafts and insights, all AI generated content published on Ainvest is subject to comprehensive human editorial review before publication. A designated human editor reviews, verifies, and approves each article for factual accuracy, coherence, and compliance with AInvest Fintech Inc’s editorial and disclosure standards.
Despite these review procedures, the information provided may still contain inaccuracies, incomplete data, or time sensitive references due to the inherent limitations of AI generated analysis and evolving changes. The material is provided strictly for informational and educational purposes and does not constitute personalized investment, legal, or financial advice. Readers should independently verify all facts, figures, and statements before making any decision based on this content.
AInvest Fintech Inc. its affiliates, and partners accept no liability or responsibility for any direct or consequential losses arising from reliance on this content. All articles and analyses are subject to revision, update, or removal without prior notice to maintain accuracy and integrity in our publications.
Comments
No comments yet