Hero FinCorp, the non-banking financial services division of the eponymous two-wheeler manufacturer, has raised Rs 260 crore in a pre-IPO placement.The round was executed on June 5 where Hero FinCorp entered into investment agreements with 12 investors, allotting 18.57 lakh shares at Rs 1,400 apiece on June 13, the company said in a public announcement on Saturday. The placement ahead of the the IPO values the NBFC at Rs 23,174 croreThe Munjal-backed firm allotted shares worth Rs 69 crore to Shahi Exports and worth Rs 50 crore to RVG Jatropha Plantation. Mohan Exports and AP Properties were also allotted equity worth Rs 25 crore and Rs 22 crore respectively.Additional participants in the round were Vivek Chaand Sehgal, Paramount Products, Tiger Laser Pte, Virender Uppal, Laksh Vaaman Sehgal, Renu Sehgal Trust, Yugal Chit Fund, and Lugard-affiliated LC Hercules (Cayman).Except for Vivek and Laksh Sehgal, who are directors Motherson Auto Ltd., a group company, none of the allottees are related to the financier.The fundraise led to a reduction in fresh issue size to Rs 1,840 crore from the earlier planned Rs 2,100 crore, Hero FinCorp said. "We further undertake to update the disclosure in the RHP and Prospectus to include details of the pre-IPO placement undertaken, along with a summary of the investment agreement," the announcement read.The total IPO size now stands at Rs 3,408 crore, which includes a Rs 1,568 crore stake sale by existing investors.Those selling shares in the OFS include Yahoo-owner Apollo Management, London-based private equity firm Apis Partners, Delhi-based Link Investment Trust, and Chrys Capital-backed Otter Ltd.Hero FinCorp IPO: SEBI Approves Rs 3,668 Crore FundraiseHero FinCorp received the Securities and Exchange Board of India's approval to float its IPO in late May.As per the draft papers, proceeds from the fresh issue will be used to increase the company's capital to meet future funding needs for lending activities.The non-banking financial company offers a diversified suite of financial products primarily to the retail segment and the micro, small and medium enterprises customer segment. The company's retail loans include vehicle, personal and mortgage loans.It had assets under management of Rs 51,820.8 crore as of March 2024, of which retail and MSME loan verticals contributed 65.08% and 20.80%, respectively.The NBFC operates under the 'Hero' brand, and it benefited from the long-standing corporate heritage, strong track-record and reputation of its parent and promoter, Hero MotoCorp, according to the DRHP.Since its inception in 1991, the firm's customer base has grown to 1.18 crore as of March 2024.. Read more on IPOs by NDTV Profit.