Hero FinCorp Raises ₹260 Cr in Pre-IPO Round – IPO Size Cut!

What’s Happening? Hero FinCorp (NBFC backed by Hero MotoCorp & Munjal family) raised ₹260 Cr in a pre-IPO funding round this week. This fundraise led to a reduction in IPO fresh issue size from ₹2,100 Cr to ₹1,840 Cr. Who Invested in Pre-IPO Round? Hero FinCorp allotted 18.57 lakh shares at ₹1,400/share to 12 investors on June 13, 2025: Top Investors: ✅ Shahi Exports – ₹69 Cr ✅ RVG Jatropha Plantation – ₹50 Cr ✅ Mohan Exports – ₹25 Cr ✅ AP Properties – ₹22 Cr ✅ Others like Vivek Chaand Sehgal, Tiger Laser, Yugal Chit Fund, Renu Sehgal Trust, etc., invested ₹15 Cr each. 📌 Only two investors (Sehgal family) have indirect connections via Motherson Auto; rest are independent. Revised IPO Structure: • Fresh Issue: ₹1,840 Cr • Offer for Sale (OFS): ₹1,568.13 Cr Total IPO Size Now: ₹3,408.13 Cr (down from ₹3,668.13 Cr) OFS proceeds go to selling shareholders like: • AHVF II Holdings • Apis Growth II • Link Investment Trust • Otter Why is Hero FinCorp Raising Funds? 🔹 To strengthen its Tier-I capital base 🔹 Support future lending growth 🔹 Cater to rising demand in retail, MSME & institutional lending Competitors: Hero FinCorp competes with giants like Bajaj Finance, Cholamandalam, Sundaram Finance, and Poonawalla Fincorp. IPO Approval Status: 🔹 Already got SEBI approval 🔹 Lead managers include JM Financial, Axis Cap, ICICI Sec, Jefferies, SBI Cap, etc. Summary: Hero FinCorp secured ₹260 Cr pre-IPO, reducing IPO size. Top names invested, showing trust. Funds will boost capital for future lending. IPO coming soon—one to watch in NBFC space!