Hero FinCorp, the financial services arm of two-wheeler giant Hero MotoCorp, has submitted initial documents to the Securities and Exchange Board of India (SEBI) for a proposed initial public offering (IPO) aiming to raise ₹3,668 crore.


The IPO will include a fresh equity issuance of ₹2,100 crore and an offer for sale (OFS) of ₹1,568 crore by existing shareholders, according to the draft red herring prospectus (DRHP) filed on Wednesday. The OFS will see shares sold by AHVF II Holdings Singapore II Pte. Ltd, Apis Growth II (Hibiscus) Pte. Ltd, Link Investment Trust (represented by Vikas Srivastava), and Otter Ltd.


The fresh capital raised will bolster Hero FinCorp’s resources to support future lending activities. The non-banking financial company (NBFC) primarily serves retail, micro, small, and medium enterprises (MSMEs) across India.


As of March 2024, Hero FinCorp's assets under management (AUM) stood at ₹51,821 crore, with retail and MSME loans contributing 65% and 21%, respectively. Since its founding in 1991, the company has expanded its customer base to 1.18 crore.


JM Financial Ltd, BofA Securities India Ltd, HSBC Securities and Capital Markets (India) Private Ltd, ICICI Securities Ltd, Jefferies India Private Ltd, and SBI Capital Markets Ltd are the lead managers for the IPO. The shares will be listed on both the BSE and NSE.