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Hero Fincorp to raise Rs 2k crore for growth

Hero Fincorp could raise ₹2,000 crore equity funding from existing and new investors to create a capital buffer for its business, according to people familiar with the matter.
As part of the funding plan that is under deliberation,
and members of the Munjal family through their investment companies could bring in ₹1,100-1,200 crore of equity funding with new investors bringing in the remaining amount. The Munjal family are the promoters of Hero MotoCorp and also have substantial shareholding in Hero Fincorp, which is registered as a non-bank finance company.
The firm final raised fairness funding in 2019-20 when present traders pumped in Rs 1,074 crore. That spherical valued the corporate at round $1.3 billion.
Hero Fincorp was initially often known as Hero Finlease. The firm has been in existence for virtually three many years. It was initially engaged in financing suppliers of Hero Honda. The firm assumed its present kind after the restructuring of Hero Honda Motors in 2011, which led to the exit of Honda as the corporate’s three way partnership accomplice.
Hero Motocorp owns around 40% stake. Family investment companies and members of the Munjal family in their individual capacity own 30-35% stake. The other shareholders include ChrysCapital, Credit Suisse and Apis Partners as well as dealers of Hero Motocorp.

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