The board of Hero FinCorp, the financial services arm of two-wheeler maker Hero MotoCorp, has approved the Rs 4,000-crore initial public offering (IPO), a company statement said on Thursday. The IPO will be a combination of fresh issue of shares and an offer for sale by existing shareholders.
“The board of directors of the company in their meeting held on May 29 has considered and approved the IPO of the equity shares of face value of ₹10 each comprising of a fresh issue of equity shares aggregating up to ₹40,000 million and an offer for sale of equity shares by certain existing and eligible shareholders of the company,” Hero FinCorp said in a filing.
A diversified financial services company, Hero FinCorp offers two-wheeler financing, advances for buying homes in the affordable housing segment, loans for education, and lends to the small and medium enterprise sector. The company has presence in over 4,000 cities and towns across India and nearly 2,000 retail financing touch points within Hero MotoCorp’s network.Hero MotoCorp owns around 40% stake in Hero Fincorp, promoters Munjal family hold around 35-39%, while the balance is held by private equity investors like Apollo Global, ChrysCapital, Credit Suisse and some dealers of HeroMotoCorp.