New Delhi [India], May 30 : The Board of Hero FinCorp, a non-banking financial company and an associate of Hero MotoCorp, has approved an Initial Public Offering (IPO) for a fresh issue and offer for sale, the company informed the exchange in a filing.
The company says that IPO will raise around Rs 4000 crore through equity offering and with a face value of Rs 10 for each share. This move is subject to market conditions, approvals, and regulatory clearances. The Board of Directors of Hero FinCorp sanctioned the IPO during a meeting held on May 29th.
"This is to inform you that the Board of Directors of Hero FinCorp Limited ("Hero FinCorp"), an associate company of Hero MotoCorp Limited ("Company"), has provided its approval to undertake an initial public offering route" said the company.
It further added "The Board of Directors of the Company, in their meeting, has considered and approved the Initial Public Offering (IPO) of the equity shares of a face value of Rs 10 each comprising a fresh issue of Equity Shares aggregating up to Rs 40,000 million"
The funds generated from this IPO are likely to be used to support the company's growth initiatives, strengthen its balance sheet, and enhance its market position.
Hero FinCorp, provides a range of financial services including loans for two-wheelers, used cars, and personal loans. The company aims to strengthen its financial base through IPO and expand its service offerings.
The exact timing of the IPO and further details will depend on the prevailing market conditions and the requisite regulatory approvals.
Investors and market watchers will be keenly observing the developments as Hero FinCorp set to enter in the stock markets.
The shares of the Heromoto Corp were trading at Rs 5,148 at the time of filing this report.
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