Hero MotoCorp shares surged over 3 per cent on Friday, after its auto financing arm Hero FinCorp, raised Rs 1,000 crore to fuel future growth. Hero MotoCorp, India's biggest two-wheeler manufacturer, was the top gainer in the Nifty50 index today.
Hero FinCorp raised Rs 570 crore from Chrys Capital, Rs 132 crore from Credit Suisse and Rs 300 crore from its parent Hero MotoCorp, the company said in a press release.
Hero FinCorp expects credit demand to increase over the next 12-18 months and this fund raising will help it meeting the anticipated credit demand, the Non-Banking Financial Company said.
Hero FinCorp has grown its asset size to Rs 8,000 crore from Rs 300 crore in 2013. The auto finance company expects to boost its asset size to Rs 35,000 crore by 2020.
"The financial services market in India, particularly the NBFCs, has witnessed steep growth in recent years and it still remains largely under penetrated. With Hero FinCorp, we aim to capitalise on this opportunity by providing credit power to the financially excluded customers across the hinterlands of the country," Pawan Munjal, chairman of Hero group said.
Hero MotoCorp shares closed 1.85 per cent higher at Rs 3,588.70 compared to 0.43 per cent gain in the broader Nifty.
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