Hero Fincorp Ltd., an associate company of Hero MotoCorp., has filed its preliminary papers with the capital markets regulator SEBI to raise up to Rs 3,668 crore via an initial public offering.
The public offer is a combination of a fresh issue of shares worth Rs 2,100 crore and an offer-for-sale component worth Rs 1,568 crore, according to the draft red herring prospectus.
AHVF II Holdings Singapore II Pte., Apis Growth II (Hibiscus) Pte. and Link Investment Trust and Otter Ltd. will be the investors selling shareholders under the OFS. AHVF II Holdings has about 10.34% stake, while Apis Growth has 1.24% stake in the non-banking financial lender.
JM Financial Ltd., Axis Capital Ltd., BofA Securities India Ltd., HDFC Bank Ltd., HSBC Securities and Capital Markets (India) Pvt., ICICI Securities Ltd., Jefferies India Pvt. and SBI Capital Markets Ltd. are the book-running lead managers for the issue.
Proceeds from the fresh issue will be used to increase the company's capital to meet future funding needs for lending activities. The equity shares of the company are proposed to be listed on the BSE and NSE.
The non-banking financial company offers a diversified suite of financial products primarily to the retail segment and the micro, small and medium enterprises customer segment. The company's retail loans include vehicle, personal and mortgage loans.
It had assets under management of Rs 51,820.8 crore as of March 31, of which retail and MSME loan verticals contributed 65.08% and 20.80%, respectively.
The NBFC operated under the 'Hero' brand, and it benefited from the long-standing corporate heritage, strong track-record and reputation of its parent and promoter, Hero MotoCorp, according to the DRHP.
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