The financial services arm of Hero MotoCorp, the biggest two-wheeler manufacturer in India, has approved the ₹4,000 crore initial public offering (IPO). This information was released by the firm on May 29.
A new share offering as well as an offer for sale from current shareholders will both be part of the IPO.
A meeting on May 29, 2024, saw the Board of Directors of Hero FinCorp Limited, a division of Hero MotoCorp Limited, approve moving forward with an IPO, per the company’s registration.
“Hero FinCorp announced in a filing that the Board of Directors, in their meeting on May 29, 2024, approved an Initial Public Offering (IPO) of equity shares with a face value of ₹10 each. This includes a fresh issue of equity shares totaling up to ₹40,000 million and an Offer for Sale by certain existing and eligible shareholders of the Company.”
Hero FinCorp is an organization that offers a range of financial services. Among these services are funding for two-wheelers, loans to small and medium-sized businesses, and loans for education. The lender is available in more than 4,000 Indian cities and villages and roughly 2,000 Hero MotoCorp retail financing touchpoints.
Moneycontrol had earlier in October 2023 said that the target amount of the anticipated IPO would be as high as ₹4,000 crore, citing persons with knowledge of the matter.
According to a Moneycontrol story dated October 17, 2023, Hero FinCorp has chosen a syndicate of up to eight investment banks to manage a huge initial public offering (IPO) of approximately ₹4,000 crore in 2024.
Approximately 35–39% of Hero Fincorp is owned by the promoters, the Munjal family, according to a news article from moneycontrol. The remaining shares are held by private equity investors Apollo Global, ChrysCapital, Credit Suisse, and a few HeroMoto Corp. dealers. About 40% of Hero Fincorp is owned by Hero MotoCorp.
Hero MotoCorp’s shares were trading in the negative on Thursday at ₹5,128.00 per share on the BSE. Technical experts claim that Hero MotoCorp share prices have not moved significantly over the past few weeks. Nevertheless, the prices have exceeded broad-based profit booking, with a time-wise consolidation occurring in the prices. ₹5,500, 5,650, and 5,000 would provide quick support if a move above ₹5,250 were to regain momentum. Hero MotoCorp’s stock is up 26% year-to-date (YTD) and up 13% in May.
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