For investors waiting for IPOs, there is a latest update for one. Two wheeler manufacturer Hero MotoCorp’s Financial Services Division Hero Fincorp is also going to bring IPO. The company has received approval to bring an IPO from Capital Market Regulator SEBI. According to PTI news, this information was given in an update with the market regulator on Wednesday. This IPO of the company will be Rs 3,668 crore.
Companies selling shares in OFS
According to the news, according to Draft Red Herring Prospects (DRHP), new issues of equity shares worth Rs 2,100 crore and have a combination of Rs 1,568 crore offer for sale (OFS) by investor shareholders. The OFS (Open for Sale) has companies selling shares – AHVF II Holdings Singapore II PTE. Limited, Epis Growth II (Hibiscus) PTE. Limited, Link Investment Trust (through Vikas Srivastava) and Oter Limited.
According to the update, Hero Fincorp, who filed his initial IPO papers with SEBI in August, obtained his comments on 22 May. In SEBI language, acquiring comments means its approval to start a public issue.
Where will the raised amount be used
According to draft papers, the income received from the new issue will be used to increase the capital of the company, so that future funding requirements for lending activities can be met. Hero Fincorp is an NBFC, mainly in India, retail, micro, small and medium enterprises (MSME) customer segments provide a diverse suit of financial products. By March 2024, the NBFC firm had assets (AUM) under management of Rs 51,821 crore, with retail and MSME loan vertical contribution to 65 percent and 21 percent respectively.
These are book running lead managers
Since the establishment of the company in 1991, its customer base has increased to 1.18 crores by March 2024. JM Financial Limited, Bofa Securities India Limited, HSBC Securities and Capital Markets (India) Private Limited, ICICI Securities Limited, Jeffers India Private Limited and SBI Capital Markets Limited are the book running lead managers of the proposed IPOs. The company’s equity shares are proposed to be listed in BSE and NSE.
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