Hero Fincorp Limited is coming up with an IPO consisting of a fresh issue of shares worth INR 2,100 crores and an offer to sell existing shares worth INR 1,568.13 crores. The company aims to strengthen its Tier-I capital base for future lending and growth needs.
Hero Fincorp IPO – Important Dates
| Hero Fincorp Limited IPO Date | Yet to be announced |
| Hero Fincorp Limited IPO Listing Date | Yet to be announced |
| Hero Fincorp Limited IPO Price | Yet to be announced |
| Hero Fincorp Limited IPO Lot Size | Yet to be announced |
| Hero Fincorp Limited IPO Total Issue Size | INR 3,668.13 crores |
| Hero Fincorp Limited IPO Basis of Allotment | Yet to be announced |
| Hero Fincorp Limited IPO Initiation of Refunds | Yet to be announced |
| Hero Fincorp Limited IPO Credit of Shares to Demat | Yet to be announced |
| Hero Fincorp Limited IPO Issue Type | Book Built Issue IPO |
| Hero Fincorp Limited IPO Listing At | BSE NSE |
Hero Fincorp Limited IPO – Company Profile
Hero FinCorp Limited, a scaled NBFC under the “Hero” brand, offers diversified financial products, primarily retail, MSME, and CIF loans, leveraging Hero MotoCorp’s network and heritage to serve 11.80 million customers.
Positioned to address credit gaps, Hero FinCorp leverages India’s growing “Aspiring India” households, formalising MSMEs and digital infrastructure, driving growth in underserved retail and MSME segments fueled by favourable demographics and economic trends.
Focused on tailored financial solutions, Hero FinCorp offers diverse retail, MSME, and CIF loans, including vehicle, personal, mortgage, and business financing, designed to meet unique customer needs across various life stages.
Hero Fincorp Ltd IPO Fundamental Analysis
Hero Fincorp Limited’s financial analysis reveals a mixed performance. Revenue shows strong growth and consistent increases in equity, liabilities, profitability, earnings per share, and return on net worth, reflecting positive financial performance and business expansion.
- Revenue Trend: The revenue increased from ₹47,386.54 millions in March 2022 to ₹64,015.93 millions in March 2023. The revenue for the current year’s 12-month period ending March 2024 is INR 82,909.04 million.
- Equity and Liabilities: Both equities and liabilities have shown a consistent increase over the periods, reflecting potential growth and expansion.
- Profitability: The profit after tax (PAT) has significantly increased from ₹(1,918.98) million in March 2022 to ₹6,370.48 million by March 2024. This improvement in profitability could be a source of confidence among investors.
- Earnings per Share (EPS): The diluted EPS has risen from ₹(15.07) in March 2022 to ₹49.94 by March 2024, reflecting higher earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has increased from (4.03)% to 11.05%, indicating an increase in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth.
Hero Fincorp IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 March 2024 |
| Revenue (₹ in millions) | 47,386.54 | 64,015.93 | 82,909.04 |
| Equity (₹ in millions) | 47,699.78 | 52,478.27 | 57,720.30 |
| Expenses (₹ in millions) | 50,515.41 | 57,123.24 | 73,991.84 |
| Profit and Loss After Tax (₹ in millions) | (1,918.98) | 4,799.47 | 6,370.48 |
| Diluted EPS only (₹) | (15.07) | 37.67 | 49.94 |
| Return on Net Worth (%) | (4.03) | 9.15 | 11.05 |
| NAV per Equity Share (₹) | 374.49 | 411.87 | 452.92 |
| Total Assets (in millions) | 343,990.39 | 434,512.31 | 532,046.63 |
| Total Liabilities (in millions) | 296,290.61 | 382,034.04 | 474,326.33 |
Hero Fincorp Limited IPO Peer Comparison
Hero FinCorp Limited shows robust financial performance with strong revenue growth, profitability, and a healthy return on equity. Comparatively, Bajaj Finance, Cholamandalam, Poonawalla Fincorp, and Sundaram Finance exhibit varying levels of performance and profitability.
| Company | Type of financial (₹ in millions) | Total Revenue from operations (₹ in million) | Face Value per Equity Share (₹) | P/E Ratio | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV (₹ in millions) |
| Hero FinCorp Limited | Consolidated | 82,909.04 | 10 | – | 50.04 | 49.94 | 11.05 | 452.92 |
| Bajaj Finance Limited | Consolidated | 549,694.90 | 2 | 28.77 | 236.89 | 235.98 | 18.84 | 1,239.03 |
| Cholamandalam Investment & Finance Company | Consolidated | 191,396.20 | 2 | 34.36 | 41.17 | 41.06 | 17.46 | 233.26 |
| Poonawalla Fincorp Limited | Consolidated | 31,090.10 | 2 | 17.37 | 21.89 | 21.63 | 20.61 | 105.44 |
| Sundaram Finance Limited | Consolidated | 72,671.20 | 10 | 33.88 | 130.31 | 130.31 | 16.63 | 997.10 |
Hero Fincorp Ltd IPO Objective
The main objective of Hero Fincorp Limited is to strengthen its Tier-I capital base for future lending and growth needs.
Augmentation of the company’s Tier–I capital base to meet the company’s future capital requirements towards onward lending: The company intends to utilise the net proceeds to strengthen its Tier-I capital, supporting business growth, ensuring regulatory compliance, and optimising leverage for onward lending, technology investments, and general corporate purposes.
Hero Fincorp IPO Risks And Challenges
Hero Fincorp Limited’s risk includes fluctuations in two-wheeler loan demand, customer defaults, and challenges in assessing new-to-credit (NTC) customers. Increasing NPAs and unsecured loan defaults could impact financial performance and require higher provisions.
- The company sources two-wheeler loans through Hero MotoCorp dealerships cross-sells personal loans to timely payers, and disburses loans primarily to Hero MotoCorp customers. Demand fluctuations in the two-wheeler market could impact loan disbursement and cross-selling.
- The company faces potential customer defaults, delayed payments, and increasing NPAs. While Stage 3 loans decreased, higher defaults may require increased provisions, impacting financial health. Risk management controls may not entirely prevent future losses.
- The company extends loans to new-to-credit (NTC) customers whose creditworthiness is more challenging to assess. Defaults from these customers, especially unsecured loans, may result in partial or no recovery, negatively impacting business and financial performance.
Hero Fincorp Ltd IPO – Industry & Market Potential
Systemic credit grew 10.3% YoY in FY22, driven by investment boosts and increased business activity. In FY23, growth continued with strong retail demand and NBFC credit. CRISIL projects a 13-14% CAGR from FY23 to FY25.
Retail credit in India reached Rs. 63 trillion in FY23, growing at a 14.3% CAGR from FY19 to FY23. Post-pandemic, growth accelerated, and it is expected to continue strong growth at 17-18% CAGR, reaching Rs. 87 trillion by FY25.
NBFCs have grown from Rs. 2 trillion AUM in 2000 to Rs. 41 trillion in FY24, with a 10% CAGR. CRISIL projects 16-18% growth by FY25, driven by microfinance, vehicle financing, and MSME loans led by large players.
Hero Fincorp Limited IPO – Type of Offer
Hero Fincorp Limited plans a fresh issue of shares, seeking INR 2,100 crores to strengthen its Tier-I capital base for future lending and growth needs. Additionally, the company proposes an offer to sell existing shares worth INR 1,568.13 crores.
- Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 2,100 crores. The company intends to utilise the proceeds from the fresh issue to strengthen its Tier-I capital base for future lending and growth needs.
- Offer for sale: Hero Fincorp Limited is offering to sell existing shares worth INR 1,568.13 crores.
Hero Fincorp IPO Offer Size
The offer size of Hero Fincorp Limited is 3,668.13 crores, consisting of a fresh issue of shares worth INR 2,100 crores and an offer to sell existing shares worth INR 1,568.13 crores. The company aims to strengthen its Tier-I capital base for future lending and growth needs.
Hero Fincorp Limited IPO Allotment Structure
Hero Fincorp Limited’s allocation will be as follows: 75% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 10% for Retail Individual Investors (RII) according to SEBI regulations. A portion is set aside for eligible employees.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 75% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 10% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
● Eligible Employees: A portion is set aside for eligible employees.
How to apply for the Hero Fincorp IPO?
To apply for the Hero Fincorp Limited IPO through Alice Blue, follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Hero Fincorp Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Hero Fincorp Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How do you check Hero Fincorp IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Hero Fincorp Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Hero Fincorp Limited IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, we request you reach out to our customer support team at Alice Blue for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Hero Fincorp Limited IPO:
● Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the Hero Fincorp Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● BSE NSE: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) National Stock Exchange (NSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Hero Fincorp Ltd IPO Offer Registrar
The registrar for the Hero Fincorp Limited IPO is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Link Intime India Private Limited
C 101, 1st Floor,
247 Park, L.B.S Marg
Vikhroli West,
Mumbai 400 083
Maharashtra, India
Tel: +91 22 4918 6000
Email: [email protected]
Website: www.linkintime.co.in
Hero Fincorp IPO – FAQs
1. What is the allotment date of the Hero Fincorp IPO?
The allotment date of Hero Fincorp is yet to be announced.
2. What is the price band of the Hero Fincorp IPO?
The price band of the issue is yet to be announced.
3. What is the size of the Hero Fincorp IPO?
The offer size of Hero Fincorp Limited is 3,668.13 crores, consisting of a fresh issue of shares worth INR 2,100 crores and an offer to sell existing shares worth INR 1,568.13 crores. The company aims to strengthen its Tier-I capital base for future lending and growth needs.
4. What is the listing date of the Hero Fincorp IPO?
The listing date of Hero Fincorp is yet to be announced.
5. Where is the Hero Fincorp IPO Getting Listed?
Hero Fincorp is getting listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
6. What are the open and close dates of the Hero Fincorp Limited IPO?
The open and close dates of Hero Fincorp Limited are yet to be announced.
7. How to apply for Hero Fincorp Ltd IPO in Alice Blue?
To apply for the Hero Fincorp Limited IPO through Alice Blue, open a Demat and Trading account, check IPO details, place your bid within the price band, and submit your application. Afterwards, check the allotment status, as shares are not guaranteed.
8. Who are the Book Runners for the Hero Fincorp IPO?
The Book Runners for the Hero Fincorp are JM Financial Limited, Axis Capital Limited, BofA Securities India Limited, HDFC Bank Limited, HSBC Securities and Capital Markets (India) Private Limited, ICICI Securities Limited, Jefferies India Private Limited and SBI Capital Markets Limited.
