Hero FinCorp, the non-banking financial arm of the Hero Group, is moving strategically towards its much-anticipated initial public offering (IPO). In a recent development, the company secured ₹50 crore from Vattikuti Ventures in its second pre-initial public offering (IPO) round. Alongside, the company has revised its fresh issue size in the IPO from ₹1,840 crore to ₹1,790 crore, reflecting the impact of this latest capital infusion.
Raising Through Pre-IPO Rounds
Vattikuti Ventures LLC, a US-based investment firm led by philanthropist Raj Vattikuti, has made a notable investment in Hero FinCorp.
In this round, Hero FinCorp allotted 3.57 lakh equity shares at a price of ₹1,400 per share to Vattikuti Ventures, amounting to Rs 50 crore. For Rs 1,400 per share, the subsidiary of Hero MotoCorp is valued at Rs 25,014 crore. An additional allotment of 3.57 lakh equity shares with pre-IPO placement to the subscriber (Vattikuti Ventures) was made according to the resolution of the committee of directors dated July 8, 2025,” Hero FinCorp said in a notice to investors on July 10.
With this second round, Hero FinCorp continues to attract credible global investors, a strong indicator of its sound fundamentals and strategic outlook.
IPO Structure and Revised Fresh Issue Size
Post the ₹50 crore placement, Hero FinCorp has reduced its fresh issue size to ₹1,790 crore. However, the overall IPO size remains unchanged at ₹3,668.1 crore, which includes:
- ₹1,790 crore as fresh issue.
- ₹1,878.1 crore as an offer-for-sale (OFS) by existing shareholders.
The funds raised from the fresh issue will be used to strengthen Hero FinCorp’s lending portfolio, enabling it to scale operations across both retail and SME segments.
Top investment banks, including JM Financial and Axis Capital, are managing the IPO process.
About Hero Fincorp
Hero FinCorp is one of India’s leading non-banking financial companies (NBFCs), competing with players such as Bajaj Finance and Sundaram Finance. Backed by the Hero Group, the company has a diversified lending portfolio that spans consumer loans, SME financing, and commercial lending.
Its strong brand lineage, expanding customer base, and tech-enabled lending practices position it as a formidable player in the Indian financial services landscape.
The IPO will give the company wider public visibility and access to long-term capital markets. Market analysts believe that the successful completion of pre-IPO rounds with institutional participation improves the overall credibility of the offering.
