Hero FinCorp IPO: The ₹4,000 crore IPO has been approved by Hero FinCorp, the financial services division of India’s largest two-wheeler manufacturer, Hero MotoCorp, according to a May 29 company release.
The IPO will consist of both a fresh issue of shares and an offer for sale made by existing shareholders.
According to the company’s filing, the Board of Directors of Hero FinCorp Limited, a subsidiary of Hero MotoCorp Limited, gave their consent to pursue an initial public offering route during a meeting on May 29, 2024.
“This is to inform you that the Board of Directors of the Company in their meeting held on May 29, 2024, has considered and approved the Initial Public Offering (IPO) of the equity shares of face value of ₹10 each comprising of a fresh issue of equity shares aggregating up to ₹40,000 million and an Offer for Sale of Equity Shares by certain existing and eligible shareholders of the Company,” said Hero FinCorp in a filing.
Hero FinCorp is a financial services organisation that provides a variety of services. Some of these services include loans for education, loans to small and medium-sized businesses, and financing for two-wheelers. The lender is present at about 2,000 retail finance touchpoints within Hero MotoCorp’s network, as well as over 4,000 cities and towns throughout India.
Moneycontrol had earlier in October 2023 stated, citing sources with knowledge of the development, that the projected IPO’s target size may be as much as ₹4,000 crore.
Hero FinCorp has selected a syndicate of up to eight investment banks to lead a massive IPO of about ₹4,000 crore in 2024, according to a Moneycontrol report dated October 17, 2023.
The promoters, the Munjal family, own around 35–39% of Hero Fincorp, according to moneycontrol’s news report. Private equity investors Apollo Global, ChrysCapital, Credit Suisse, and some HeroMoto Corp. dealers hold the remaining share. Hero MotoCorp controls approximately 40% of Hero Fincorp.
On Thursday’s session, Hero MotoCorp’s share price was trading in the red zone at ₹5,128.00 apiece on BSE. According to technical analysts, Hero MotoCorp share prices have not seen any major movement in the last couple of weeks; however, compared to broad based profit booking, the prices have outperformed, with prices witnessing a time-wise consolidation. A move beyond ₹5,250 would resume momentum towards ₹5,500, 5,650, and 5,000 as immediate support. Hero MotoCorp’s stock has risen 13% in May and is up 26% YTD.