Hero FinCorp to Launch ₹4,000 Crore IPO in 2024 with Jefferies, HDFC, and Others as Advisors

Hero FinCorp, the financial services arm of India’s leading two-wheeler giant Hero MotoCorp, has shortlisted eight investment banks to launch a mega initial public offer in 2024. The targeted size of the proposed IPO is around ₹4,000 crore, according to a report by news website Moneycontrol. The size of the proposed IPO may vary later depending on market conditions and share sale strategies of the investors, according to the report.

“This is a big listing in the works. JM Financial, Bofa Securities, Jefferies, ICICI Securities, HSBC Securities, UBS, SBI Capital, and HDFC have been selected as the advisors,” official sources told Moneycontrol. The proposed issue will be a combination of primary and secondary issuance of shares which would mop up growth capital and provide an exit for some of the investors, sources told the news website.

Hero Fincorp is one of the country’s fastest-growing non-banking financial company (NBFC) and claims that it disburses a loan once every 30 seconds. Hero MotoCorp owns around 40 per cent stake in Hero Fincorp, the promoters – the Munjal family own around 35-39 per cent, while the remaining stake is in the hands of private equity investors such as Credit Suisse, Apollo Global, and a few dealers of Hero MotoCorp.

On Tuesday, October 17, shares of Hero MotoCorp settled 0.37 per cent higher at ₹3,171.80 apiece on the BSE. The stock has risen 25 per cent in the last one year and 16 per cent in 2023 year-to-date. The auto stock has given positive returns in seven of the 10 months of the current calendar year and negative in 3 – August (-9 per cent), March (-3 per cent), and February (-12.5 per cent). It rose the most in July, up 10 per cent. The stock has gained 4 per cent in October so far following an almost 5 per cent in September.