Hero FinCorp has raised ₹260 crore in a pre-IPO round. The non-banking finance company, backed by Hero MotoCorp and the Munjal family, made this announcement on June 14, 2025. The funding is a strong vote of confidence from large investors in Hero FinCorp’s future.
Hero FinCorp Cuts Fresh Issue Size After Pre-IPO Success
Originally, Hero FinCorp was planning to raise ₹2,100 crore through its fresh issue. But after securing ₹260 crore in its pre-IPO round, it has cut its fresh issue size to ₹1,840 crore. So now, the total IPO comprises ₹1,840 crore in fresh shares and ₹1,568.13 crore in an offer-for-sale (OFS) by existing stakeholders. That brings the total IPO size to ₹3,408.13 crore, down from ₹3,668.13 crore previously.
Top Investors Showing Faith in Hero FinCorp
Some big players came forward in this pre-IPO round. Shahi Exports and RVG Jatropha Plantation were the largest investors, putting in ₹69 crore and ₹50 crore, respectively. Furthermore, Mohan Exports put in ₹25 crore, and AP Properties added ₹22 crore.
Other contributors, each investing ₹15 crore, include Vivek Chaand Sehgal, Paramount Products, Tiger Laser Pte, and Virender Uppal. Laksh Vaaman Sehgal, Renu Sehgal Trust, Yugal Chit Fund, and LC Hercules (Cayman) were also a part of this round.
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Hero FinCorp’s Plans After Fundraising
The main aim of Hero FinCorp’s fundraise is to increase its Tier-1 capital base. That means more financial muscle to grow its retail, MSME, and corporate and institutional finance segments. The company plans to use this fund to expand its operations and meet future capital requirements.
Meanwhile, the selling shareholders in the OFS, including Apis Growth II, Link Investment Trust, and Otter, will pocket their profits from their holdings.
Hero FinCorp Among Top Players in NBFC Market
Hero FinCorp is a key player in the non-banking finance sector alongside companies like Bajaj Finance, Cholamandalam, Poonawalla Fincorp, and Sundaram Finance. It offers a range of products — from vehicle loans and MSME funding to large corporate and institutional financing.
This fundraise shows strong confidence from investors and underscores Hero FinCorp’s ability to grow in a competitive market.
The company has already gotten approval from SEBI for its IPO. JM Financial, Axis Capital, BofA Securities, HDFC Bank, HSBC Securities, ICICI Securities, Jefferies India, and SBI Capital Markets are the lead managers for this public issue.
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