Hero FinCorp Ltd. IPO Details
Hero FinCorp Ltd. was incorporated on December 16, 1991. The company is a scaled NBFC offering a diversified suite of financial products catered primarily to the growing retail customer segment and the rapidly formalising MSME customer segment in India. It offers retail, MSME, and CIF loans. The retail loans include vehicle, personal, and mortgage loans.
| Bidding Dates |
|---|
| To Be Announced |
| Minimum Investment | Minimum Lot | Maximum Lot | Lot Size | Number of Shares | Issue Price Band | Post Issue Promoter Holding % | Issue Size | IPO Document |
|---|---|---|---|---|---|---|---|---|
| - | - | - | - | 0 | - | - | ₹33,581.3 M | DRHP DOC |
Hero FinCorp Ltd. issue details
Hero FinCorp Ltd. IPO issue size is ₹ 33,581.3 M
| Day | Retail Individual Investor | HNI (NII) Investors | Qualified Institutional Buyers |
|---|---|---|---|
| Category Reservation | 10% | 15% | 75% |
Hero FinCorp Ltd. IMPORTANT IPO DATES
| Issue Open Date | - |
| Issue close Date | - |
| Allotment Date | - |
| Refund Date | - |
| Demat Account Credit Date | - |
| Listing Date | - |
| Listing on Exchange(s) | NSE and BSE |
Hero FinCorp Ltd. NUMBER OF SHARES ON OFFER
Hero FinCorp Ltd. FINANCIALS
| Period | Revenue from Operations (Rs in crore) | Net Profit (Rs in crore) | Cash Flow from Operations (Rs in crore) | Free Cash Flow (Rs in crore) | Margins |
| H1FY26 | 4,880.1 | -123.8 | 696.0 | 647.7 | - |
| H1FY25 | 4,851.6 | 68.3 | -2,596.4 | -2,664.9 | - |
| FY25 | 9,832.7 | 83.0 | -3,913.7 | -4,029.5 | - |
| FY24 | 8,290.9 | 611.1 | -9,238.8 | -9,395.2 | 53.5% |
| FY23 | 6,401.6 | 480.9 | -6,918.5 | -6,966.8 | 50.5% |
Hero FinCorp Ltd. INFORMATION ON IPO ISSUE
About Hero FinCorp Ltd.
Hero FinCorp Ltd. was incorporated on December 16, 1991. The company is a scaled NBFC offering a diversified suite of financial products catered primarily to the growing retail customer segment and the rapidly formalising MSME customer segment in India. It offers retail, MSME, and CIF loans. The retail loans include vehicle, personal, and mortgage loans.
Object of the Issue
- Augmentation of the company’s Tier–I capital base to meet future capital requirements towards onward lending
Hero FinCorp Ltd. - PROMOTERS
| Name |
|---|
| Pawan Munjal |
| Renu Munjal |
| Suman Kant Munjal |
| Renuka Munjal |
| Abhimanyu Munjal |
| Hero MotoCorp Limited |
| Bahadur Chand Investments Private Limited |
| Hero InvestCorp Private Limited |
| Brijmohan Lal Om Parkash (Partnership Firm) |
Hero FinCorp Ltd. Strengths
Hero heritage
The company benefits significantly from the strong track record and reputation associated with the long-standing “Hero” brand. The Hero Group which comprises all entities owned and controlled by the promoters of Hero FinCorp, is widely recognised throughout India.
Diversified offerings
The company's offerings have diversified and expanded strategically to include a comprehensive range of secured and unsecured loans tailored to meet the diverse and evolving needs of retail and MSME customers throughout their life cycle.
Hero FinCorp Ltd. Risks
Dependence on new-to-credit borrowers
The company’s retail finance business depends on new-to-credit borrowers who constituted 26.55%, 34.06%, and 46.33% of its total retail assets under management as of March 31, 2024, 2023, and 2022, respectively. It may not be able to properly assess the credit of new-to-credit borrowers, and loans extended to such new-to-credit borrowers may accordingly have a higher risk of non-performance or default.
Regulatory proceedings
Certain promoters have been and are currently subject to certain regulatory proceedings initiated by authorities. Any adverse outcome in such proceedings may lead to reputational risks.
Reliance on IT systems
From time to time, the company's IT systems require maintenance and upgrades, including in response to technological advances and emerging banking and other financial services industry standards and practices. Any failure to do so, in a timely manner or at all, could result in disruption, breach, or failure of its IT infrastructure, and could result in the malfunctioning of financial, accounting, or data processing systems.
IPO FAQs
The promoters of the company are Pawan Munjal, Renu Munjal, Suman Kant Munjal, Renuka Munjal, Abhimanyu Munjal, Hero MotoCorp Limited, Bahadur Chand Investments Private Limited, Hero InvestCorp Private Limited and Brijmohan Lal Om Parkash (Partnership Firm).
The category allocation of qualified institutional buyers is 75.0%, the category allocation of non individual investors or high networth individuals is 15.0% and for retail investors it is 10.0%.