People familiar with the matter said Apollo Global Management has agreed to invest roughly Rs. 1940 crore ($125 million) in Hero FinCorp, the Hero Group's lending arm.

In total, 2.000 crores will be raised from existing and new investors.

This month, Hero MotoCorp last announced that its board has approved investing up to Rs 700 crore in the NBFC.

Its post-money valuation the lender is roughly 12,000 crore (SL6 billion). Existing investors invested around 1,074 crores in the company in FY20. Around $1.3 billion was invested.

Apollo will end up owning 9-11 percent of the NBFC completely diluted and will be on the board. The Munjal family, the promoters of Hero MotoCorp, owns 30-35% of the NBFC. Other stockholders include ChrysCapital, Credit Suisse, Apis Partners, and Hero MotoCorp dealers. Apolo declined to comment. Emails to Abhimanyu Munexisting and Jal, CEO, of Hero Finnew investors Corp, went unanswered. 

After 2013, Hero FinCorp expanded into two-wheeler financing and SME and corporate loans. In 2017, it got a housing financing license. The company's current loan hook is over 28,000 crore, split between retail (50%) and SME (30%), and corporate (20%). Its capital adequacy ratio was 19%, exceeding regulatory restrictions for FY21.