New Delhi : Hero FinCorp today raised Rs 1,002 crore from private equity firms ChrysCapital, Credit Suisse and also from its parent Hero Group to fuel expansion over the next 12-18 months.
ChrysCapital has invested Rs 570 crore, Hero Group made an additional investment of Rs 300 crore and Credit Suisse of another Rs 132 crore.
Post investment, ChrysCapital will have 11 per cent stake in Hero FinCorp while Credit Suisse will hold around 2.5 per cent stake in the NBFC.
“The financial services market in India particularly the NBFCs have witnessed steep growth in recent times and it still remains largely under penetrated,” Hero Group Chairman Pawan Munjal told reporters here.
When asked if the company would look at banking licence going ahead, Munjal said the company would first focus on growing the current business.
“It surely is part of our vision to go into the banking system, but not now,” he added.
Hero FinCorp Joint Managing Director and CEO Abhimanyu Munjal said the company plans to grow its asset book size to Rs 35,000 crore by 2020.
The company’s asset size currently stands at Rs 8,000 crore.
“The fresh investment that we have received are going to significantly contribute towards our expansion plan,” Abhimanyu Munjal said.
By 2020, the company plans to enter new product segments like home loans, used two-wheeler loans while further augmenting existing businesses with special focus on used car business and SME lending.
The company also plans to introduce disruptive financial technologies into its business through partnerships with financial technology startups.
It also plans to double touch points in the country to 4,000 by 2020.
Hero MotoCorp and Munjal family have a combined holding of 79 per cent in Hero Fin Corp. Hero MotoCorp alone has a stake of 41 per cent in the NBFC firm.
Hero MotoCorp stock closed 1.86 per cent down at Rs 3,522.60 on BSE today.