Hero MotoCorp said the board of its associate company Hero FinCorp Ltd has approved plans for an initial public offering (IPO), comprising a fresh issue of shares aggregating up to Rs 4,000 crore and an offer of sale by existing shareholders.
Hero FinCorp is a non-banking finance company (NBFC), incorporated in 1991, providing financial services, including two-wheeler financing and credit to Hero MotoCorp’s vendors and suppliers. Over the years, it has added several new products and customers to its portfolio, like small and medium enterprises, commercial loans and loans against property.
“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 Rs 10 each comprising of a fresh issue of equity shares aggregating up to Rs 40,000 million and an offer for sale of equity shares by certain existing and eligible shareholders of the company,” Hero MotoCorp said in an exchange filing.
According to Hero FinCorp’s 2022-23 annual report, Hero MotoCorp held a 41.19 percent stake in the company, followed by a 20.34 percent stake by Bahadur Chand Investment Pvt Ltd. Abhimanyu Munjal is the managing director and CEO of the company.