Shares of Hero MotoCorp Ltd will be in focus during the trading session on Thursday as its associate company, Hero Fincorp, is gearing up for an initial public offering (IPO). The company informed about the same through an exchange filing with the bourses after market hours on Wednesday.
The board of directors of Hero FinCorp Ltd (Hero FinCorp), an associate company of Hero MotoCorp Ltd, at its meeting held on May 29, 2024 has provided its approval to undertake an initial public offering (IPO) route, said the exchange filing with the bourses.
"The IPO will be undertaken by way of fresh issue and an offer-for-sale (OFS) by certain existing and eligible shareholders, subject to market conditions, receipt of applicable approvals, regulatory clearances and other considerations," the filing from Hero MotoCorp said.
Shares of Hero MotoCorp settled at Rs 5141.50 on Wednesday, falling nearly a per cent. The blue-chip two-wheeler maker's market capitalization stood at little more than Rs 1.02 lakh crore as of previous close.
According to the intimation by Hero Fincorp, the non-banking financial arm of the Hero Group is eyeing its primary stake sale which includes a fresh share component of Rs 4,000, while the size of offer-for-sale component has not been disclosed yet.
Being a non-banking financial company, Hero Fincorp Ltd primarily deals in financing retail and corporate customers through products including two-wheeler financing, term loans, working capital loans, loans against property, bill discounting, leasing, and other financial services.