Hero FinCorp Secures ₹260 Crore in Pre-IPO Round; Reduces Fresh Issue Size

Hero FinCorp, the financial services arm of Hero MotoCorp, has raised ₹260 crore via a pre-IPO placement. This move has led the company to trim its fresh issue component from ₹2,100 crore to ₹1,840 crore, as per news reports.

Pre-IPO Fundraise and IPO Size Revision

As a result, the total IPO size now stands at ₹3,408 crore, including an offer-for-sale (OFS) worth ₹1,568 crore by existing shareholders. The earlier planned IPO size was ₹3,668 crore.

This fund infusion reflects strong investor interest ahead of the company’s public listing and supports its strategy to optimise capital raising.

Regulatory Milestone

Hero FinCorp received the go-ahead from the Securities and Exchange Board of India (SEBI) on May 22, 2025. This marks a key regulatory milestone in the company’s IPO journey.

The company had filed its Draft Red Herring Prospectus (DRHP) with SEBI in August 2024. Following the receipt of regulatory observations typically the final step before launch the IPO process is now in its final stages.

Business Overview

Founded in 1991, Hero FinCorp operates as a Non-Banking Financial Company (NBFC), offering a diverse suite of financial products and services to individuals, micro-enterprises, and small and medium enterprises (SMEs) across India.

As of March 2024, the company reported assets under management (AUM) of ₹51,821 crore. Its loan portfolio is primarily driven by retail loans (65% of AUM) and MSME loans (21%). Over the years, Hero FinCorp has established a wide customer base of approximately 1.18 crore borrowers, highlighting its significant market reach and growing presence in the financial sector.

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Conclusion

Hero FinCorp’s pre-IPO fundraise and regulatory clearance from SEBI indicate steady progress toward its upcoming public listing. With a strong presence in the retail and MSME lending space, the company’s revised IPO structure reflects both investor interest and strategic financial planning.

As the IPO launch approaches, market participants will be watching closely for further developments, including pricing and subscription details.

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