On Thursday, May 30, Hero MotoCorp Limited, the largest two-wheeler manufacturer in India, announced through an exchange filing that its financial services arm, Hero FinCorp Limited, has received approval from its Board of Directors to proceed with an Initial Public Offering (IPO).

The proposed IPO will feature two main components. The first component is a fresh issue, where Hero FinCorp will issue new shares to raise capital from investors. The second component is an offer for sale, allowing existing shareholders to sell part of their stakes in the company to interested buyers.

According to the regulatory filing, the IPO will include a fresh issuance of equity shares, each with a face value of Rs 10. The total value of these newly issued shares is projected to be Rs 40,000 million.

Hero FinCorp aims to utilize the funds raised through the fresh issue to bolster its capital base, support business expansion, and enhance its lending capacity. This strategic move is expected to strengthen the company’s financial position and enable it to meet growing demand in the financial services sector.

Market analysts predict that Hero FinCorp’s IPO could garner significant interest due to the company's strong market presence and robust financial performance. Additionally, the IPO is anticipated to boost investor confidence in the broader financial services market in India.

With this approval, Hero FinCorp will now proceed with regulatory filings and other preparatory steps necessary to launch the IPO. The timeline for the IPO launch will be disclosed in subsequent communications, subject to market conditions and regulatory approvals.

This IPO marks a significant milestone for Hero FinCorp as it seeks to leverage public markets to fuel its growth and expand its footprint in the competitive financial services industry.