Hero FinCorp looks to raise Rs 800 crore from ChrysCap:

Hero FinCorp, the vehiclefinance arm of two-wheeler maker Hero MotoCorpBSE 0.03 %, is looking to raise about $120 million, or Rs 800 crore, from India-focused private equity (PE) firm ChrysCapital, two people aware of the development said.

In September 2016, Hero FinCorp had raised about Rs 1,000 crore in the first round from investors, including ChrysCapital. The PE firm and financial services firm Credit Suisse had invested around Rs 700 crore in the company, while about Rs 300 crore was invested by its parent, Hero Group. “Hero Fin-Corp has sent out feelers to ChrysCapital for the second round of investment. The deal is in an initial stage,” said a person close to the development.

The second round of fund-raising is towards the company’s plans for expansion and buying stake in other NBFCs, another person in the know said. “It makes perfect sense for Hero FinCorp to sell some stake at this point in time. The only problem is valuations; the sellers have quite high expectations,” said another person in the know.

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