Hero FinCorp IPO
IPO Price Range: Not Announced Yet
The company’s retail loans include vehicle, personal and mortgage loans with an assets under management (AUM) of ₹51,820.8 crore as of March 2024. Hero FinCorp’s retail and MSME loan verticals contributes over 80% of the total AUM.
Hero FinCorp IPO offer size is ₹3,668 crore with a fresh issue of ₹2,100 crore and an offer for sale (OFS) of ₹1,568 crore. Hero FinCorp IPO date is yet to be declared.
Hero FinCorp DRHP (Draft Red Herring Prospectus) was filed with SEBI in July 2024.
IPO Status
Upcoming
Listing Exchange
NSE
Hero FinCorp Brands, Products & Services
| Product | Non-Banking Financial Company |
| Known For | Loans and financial services |
| Top Products | Retail Loans, MSME Loans, CIF Loans |
Hero FinCorp Key Financials
Objectives of Hero FinCorp IPO
Shareholding Pattern
| Promoters | 72.98% | |
| Name | Role | Stakeholding |
| Hero MotoCorp Limited | Promoter | 39.56% |
| Bahadur Chand Investments | Promoter | 15.72% |
| BMOP | Promoter | 8.24% |
| Hero InvestCorp | Promoter | 2.08% |
| Public | 27.02% | |
| Name | Role | Stakeholding |
| Otter Limited | Investor | 7.82% |
| Others | Public | 26.58% |
Listed Competitors of Hero FinCorp
Bajaj Finance
Bajaj Finance offers diverse loans (personal, home, business), EMI financing, insurance, and investments, targeting retail and SMEs with digital solutions.
Shriram Finance
Shriram Finance provides vehicle, business, and personal loans, fixed deposits, and insurance, focusing on rural and underserved markets.
Cholamandalam Investment and Finance Company
Cholamandalam Investment and Finance Company specializes in vehicle, home, and SME loans, leveraging extensive branches for asset-backed financing.
Unlisted Competitors of Hero FinCorp
HDB Financial Services
HDB Financial Services is a leading NBFC offering secured and unsecured loans, investments, and protection solutions, with 1,747+ branches. It also provides BPO services, including back-office support and customer management.
ICL Fincorp
ICL Fincorp is an NBFC offering gold, vehicle, and asset loans, along with investment and insurance services. It also operates in travel, education, and brokerage, with a presence across India and UAE.
Tata Capital
Tata Capital offers financial products and services such as personal loans, home loans, business loans, and services like wealth management, private equity, SME financing, leasing, and credit cards.
Strengths and Risks of Hero FinCorp IPO
Strengths
Diversified Offerings: Hero FinCorp targets retail and MSME customers in India offering two-wheeler loans to a range of secured/unsecured loans. In FY24, more than 80% of the total AUM (₹51,820.8 crore), contributed by retail and MSME loans.
Brand Equity: Hero FinCorp benefits from the Hero brand, rated AAA by Brand Finance. Hero FinCorp plays a vital role in enabling retail growth of Hero MotoCorp (India’s largest two-wheeler manufacturer) by financing a significant part of sales of two-wheelers.
Customer Base: Hero FinCorp has a strong customer base of 11.8 million as of March 2024 which includes 5 million retail borrowers, 29k MSMEs, and 360 CIFs.
Large Network: Hero FinCorp’s presence (physical and digital) spans over 95% of India’s pincodes. It has more than 7,500 sales staff, 140 branches, and 4,257 Hero MotoCorp dealer touchpoints.
Risks
Dependence on Hero MotoCorp Dealerships: Hero FinCorp’s 99% of two-wheeler loans are via Hero MotoCorp’s dealership. A decline in demand of two Hero two wheelers and any conflicts between the two entities can result in a huge customer loss for the company.
Credit Risk: The company’s non-performing assets (NPAs) were at 4.02% of the total gross loans in FY24. Any rise in these, defaults, or delayed payments can hurt the company’s profitability.
New-to-Credit (NTC) Borrowers: In FY24, Hero FinCorp had around 27% NTC borrowers of the retail AUM. NTCs are usually lack credit history which increases the default risk.
Regulatory Proceedings: In August 2023, ED seized assets worth ₹25 crore involving Pawan Kant Munjal, chairman and managing director of Hero Motocorp for money-laundering.
Frequently Asked Questions of Hero FinCorp IPO
What is 'pre-apply' for Hero FinCorp IPO?
'Pre-apply' for Hero FinCorp IPO indicates your interest in the IPO before it opens for subscription. This ensures quick application when the IPO goes live.
What would be the listing gains on the Hero FinCorp IPO?
The potential listing gains on the Hero FinCorp IPO will depend on various market factors and cannot be predicted with certainty.
When is Hero FinCorp IPO coming?
Hero FinCorp has started the preparation for the IPO and filed the DRHP in July 2024, but the dates are not finalized yet.
What is Hero FinCorp IPO price?
The Hero FinCorp IPO price has not been decided yet.
What are the open and close dates of the Hero FinCorp IPO?
The Hero FinCorp IPO date is yet to be declared.
What is the allotment date of Hero FinCorp IPO?
The Hero FinCorp IPO allotment date has not been announced yet.
Can we invest in Hero FinCorp IPO?
Yes, once the Hero FinCorp IPO opens, you can invest in the company’s shares.
What is the lot size of Hero FinCorp IPO?
Hero FinCorp IPO lot size is yet to be decided.
What is the issue size of Hero FinCorp IPO?
The Hero FinCorp IPO issue size is ₹3,668 crore, including a fresh issue of ₹2,100 crore and an offer for sale of ₹1,568 crore.
Who is the CEO of Hero FinCorp?
Abhimanyu Munjal is the CEO and Managing Director of Hero FinCorp.