Apollo Global Management, the US-based private equity firm, is investing around Rs 940 crore to buy up to 11 per cent in Hero FinCorp, the lending arm of the Hero group.

The private equity firm will also reportedly have a board seat in Hero Fincorp. This investment comes after Hero MotoCorp recently announced that it will be investing up to Rs 700 crore in Hero FinCorp.

The country’s largest two-wheeler maker had said in a regulatory filing that the investment is subject to the execution of definitive documents and completion of certain conditions customary to a transaction of this nature.

Hero FinCorp is a non-banking financial company (NBFC) and it primarily deals in financing retail and corporate customers through products, including two-wheeler financing, term loans, working capital loans, loan against property, bill discounting and leasing.

The company is in the process of raising up to Rs 2,000 crore through private placement for its business purposes.

It is learnt that both Hero MotoCorp’s investment of Rs 700 crore and the infusion by Apollo Global forms part of this funding round.

Prior to the proposed investment, Hero MotoCorp’s shareholding in Hero FinCorp stood at 41.2 per cent. Hero MotoCorp had said its exact shareholding in the latter after the investment will be determined upon the completion of the funding round by the NBFC.

Hero FinCorp was incorporated in December 1991 as Hero Honda FinLease. It now offers two-wheeler and used car loans apart from personal loans. It also funds SMEs and provides loan against property among others.

The Hero group was recently in the news when Hero Electric, the country’s largest electric two-wheeler firm, joined hands with the Mahindra group to manufacture electric bikes following rising demand for such vehicles in the country.