Hero FinCorp, the financial services subsidiary of Hero MotoCorp, is preparing to launch its IPO, potentially becoming the largest NBFC IPO in India.
Hero MotoCorp, one of India's largest automotive companies, is poised to introduce its first IPO in a long time through its financial services arm, Hero FinCorp. This move marks the Hero group's second foray into the public market.
Draft Filing Expected Next Month
According to an ET report, preparations are underway to file the Draft Red Herring Prospectus (DRHP) with SEBI next month. The Hero FinCorp board approved the IPO proposal this week, accelerating the preparations for the draft filing. The IPO is expected to raise over ₹5,000 crore.
IPO Size and Details
Hero FinCorp, a non-banking financial service company, offers a range of financial solutions, including vehicle financing, personal loans, and business loans. The company aims to raise between ₹5,300 crore and ₹5,500 crore through the proposed IPO. If successful, this would be the largest NBFC IPO in India to date.
The IPO will likely include both a fresh issue of shares and an offer for sale (OFS). The fresh issue is expected to be around ₹4,000 crore, while existing investors may sell up to ₹1,500 crore worth of shares through the OFS.
Key Stakeholders
Hero MotoCorp has appointed ICICI Securities, Bank of America Securities, Jefferies, JM Financial, HSBC Securities, UBS, SBI Capital, and HDFC Bank as bankers for the IPO. Currently, Hero MotoCorp holds the largest stake in Hero FinCorp at 41%, followed by the Munjal family with 38%. The remaining shares are held by investors like Credit Suisse, Apollo Global, and some Hero MotoCorp dealers.
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