Hero FinCorp Raises ₹260 Crore from Investors in Pre-IPO Placement Round, Reduces Fresh Issue Size to ₹1,840 Crore.

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 Size

Hero 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/