Private equity firms ChrysCapital, Credit Suisse and parent Hero Group have made investments to fuel expansion over the next 12-18 months
Indian non-banking financial company Hero FinCorp has raised Rs 1,002 crores from private equity firms, ChrysCapital, Credit Suisse, and parent Hero Group to expand its portfolio to retail and corporate customers over the next 12-18 months.
ChrysCapital has invested Rs 570 crore, Hero Group Rs 300 crore and Credit Suisse of Rs 132 crore to support the expansion.
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 non-banking financial company.
"The financial services market in India particularly the NBFCs (Non-Banking financial Companies) have witnessed steep growth in recent times and it still remains largely under-penetrated," Hero group chairman Pawan Munjal told PTI.
Munjal said that company would want to focus on growing the current business and will not be looking at the banking licence going ahead.
"It surely is part of our vision to go into the banking system, but not now," he added.
Hero FinCorp joint managing director and chief executive officer Abhimanyu Munjal said the company plans to grow its asset book size to from the current Rs 8,000 crore to Rs 35,000 crore by 2020.
Hero FinCorp plans to enter into segments like home loans, used two-wheeler loans and plans to introduce disruptive financial technologies into its business.
(WION with inputs from PTI)