Hero Fincorp IPO Date, Share Price, GMP – Allotment Details

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Hero Fincorp Limited, a prominent player in India’s non-banking financial company (NBFC) sector, is gearing up for its Initial Public Offering (IPO). As a subsidiary of the well-known Hero MotoCorp, Hero Fincorp has established itself as a key provider of diverse financial products tailored primarily for retail customers and micro, small, and medium enterprises (MSMEs).

This blog aims to provide comprehensive insights into Hero Fincorp’s IPO details, financial performance, and market positioning.

Fundamental Table

MetricValue
Company NameHero Fincorp Ltd.
Issue Size₹3,668 Cr
Fresh Issue₹2,100 Cr
Offer for Sale₹1,568 Cr
Price BandTo be announced
Lot SizeTo be confirmed
Listing DateTo be announced
Promoter Holding Pre-IPO35-39%
Promoter Holding Post-IPOTo be determined

Net Sales (in cr.)

YearNet Sales
FY203,799.9
FY214,278.1
FY224,738.7
FY236,401.6
FY248,290.9

Total Income (in cr.)

YearTotal Income
FY203,855.2
FY214,333.5
FY224,797.7
FY236,447.6
FY248,359.7

Operating Profit (in cr.)

YearOperating Profit
FY202,441.3
FY211,816.6
FY221,457.7
FY232,947.1
FY244,123.9

Net Profit (in cr.)

YearNet Profit
FY20278
FY2151.6
FY22-191.9
FY23480
FY24637.1

Shareholder Funds (in cr.)

YearShareholder Funds
FY204,471.3
FY214,967.8
FY224,770
FY235,247.8
FY245,772

Total Assets (in cr.)

YearTotal Assets
FY2027,199.1
FY2129,996
FY2234,399.1
FY2343,451.2
FY2453,204.7

Financial Data (in cr.)


FY20FY21FY22FY23FY24YOY % FY24CAGR % FY24
Net Sales3799.94278.14738.76401.68290.929.521.5
Total Income3855.24333.54797.76447.68359.729.721.3
Net Profit27851.6-191.9480637.132.723
Shareholder Funds4471.34967.847705247.85772106.6
Total Assets27199.12999634399.143451.253204.722.418.3
EPS16.993.15-11.7229.3238.9232.7

Hero Fincorp Unlisted Share

MetricValue
Market Cap₹ 35,598 Cr.
Current Price₹ 2,175
Lot Size25
52W High₹ 2,200
EPS38.92
P/B6.2
Face Value10
Debt to Equity6.21
Stock P/E55.9
Book Value₹ 352.7
52W Low₹ 1,300
Demat AccountBoth
ISININE957N01016
Valuation5 Star
No. of Shares16.37 Cr

Shareholding Pattern:

HoldingMar’21Mar’20Mar’19Mar’18Mar’17
Promoters10,12,56,43210,12,56,4329,12,03,1517,78,25,7297,20,52,024
Non-Promoters2,60,50,2422,60,50,2422,29,93,7702,06,19,8922,06,27,692

Return on Equity %

CompanyFY21FY20
Hero Fincorp Ltd.1.70%8.60%
Cholamandalam Investment & Finance Company Ltd.16.90%15.20%
Adani Capital Private Ltd.4.80%0.60%
Tata Capital Financial Services Ltd.10.50%2.40%

Gross NPA %

CompanyFY21FY20
Hero Fincorp Ltd.7.40%6.50%
Cholamandalam Investment & Finance Company Ltd.4.00%3.80%
Adani Capital Private Ltd.1.40%0.50%
Tata Capital Financial Services Ltd.3.00%2.40%

Capital Adequacy Ratio %

CompanyFY21
Hero Fincorp Ltd.19.70%
Cholamandalam Investment & Finance Company Ltd.19.10%
Adani Capital Private Ltd.25.81%
Tata Capital Financial Services Ltd.20.29%
Aditya Birla Finance Ltd.22.80%

Cost to Income Ratio %

CompanyFY21
Hero Fincorp Ltd41.40%
Adani Capital Private Ltd.73.00%
Aditya Birla Finance Ltd.31.20%

Return On Asset %

CompanyFY21FY20
Hero Fincorp Ltd.0.30%1.40%
Cholamandalam Investment & Finance Company Ltd.3.00%2.70%
Adani Capital Private Ltd.1.50%0.20%
Tata Capital Financial Services Ltd.1.60%0.30%

Financials Balance Sheet:

Consolidated Balance Sheet (All amounts are in Rupees Crores except share data and unless otherwise stated)

Particulars31-Mar-2131-Mar-2031-Mar-1931-Mar-18
Assets
Financial Assets
Cash and cash equivalents1106.872343.94106.680.69
Bank balance other than cash and cash equivalents116.130.520.550.48
Trade receivables7.987.874.345.78
Loans26194.6924263.0919771.213158.06
Investments1917.2478.84811.9853.72
Other financial assets113.1132.7451.6241.2
Non-financial assets
Current tax assets (net)42.4340.8416.3910.12
Deferred tax assets (net)341.04254.55176.63123.14
Property, plant and equipment53.0572.2782.0896.26
Right-of-use assets40.1556.9
Capital Work in progress0.04
Intangible assets22.5419.3221.6914.49
Intangible assets under development0.620.610.16
Other non-financial assets40.1827.625.4118.61
Total assets29996.0327199.1321068.7313522.55
Liabilities and equity
Liabilities
Financial liabilities
Trade payables
Total outstanding dues of micro enterprises and small enterprises; and0.881.30.020.08
Total outstanding dues of creditors other than micro enterprises and small enterprises256.79167.36119.5872.77
Debt securities4235.945253.946852.955672.09
Borrowings (other than debt securities)19156.5116130.769334.694813.65
Subordinated liabilities642.91573.06448.78300
Lease liabilities44.3759.02
Other financial liabilities595.58405.62569.42359.51
Non-financial liabilities
Current tax liabilities (net)8.660.1433.5314.87
Provisions41.6934.3124.0514.9
Other non-financial liabilities4542.2833.8526.23
Total liabilities25028.2722727.7917426.8711274.1
Equity
Equity share capital127.31121.54114.1598.45
Other Equity4840.454349.83527.712150
Total equity4967.764471.343641.862248.45
Total liabilities and equity29996.0327199.1321068.7313522.55

Income Statement:

Consolidated Statement of Profit and Loss (All amounts are in Rupees Crore except share data and unless otherwise stated)

Particulars31-Mar-2131-Mar-2031-Mar-1931-Mar-18
Income
Revenue from operations
Interest income3877.793417.562247.511533.88
Dividend income0.740.740.50.01
Profit on sale of investments23.9458.1647.283.64
Rental income5.8410.8917.4822.85
Net gain on fair value changes22.662.633.19
Insurance commission13.1711.090.48
Others charge333.94301.42202.59130.94
Total revenue from operations4278.083799.862518.471694.51
Other income55.4455.32
Total income4333.523855.182518.47
Expenses
Finance costs1710.311629.221124.71683.66
Impairment allowance on loans1417.74649.86174.3136.15
Employee benefits expenses285.61302.76237.55147.61
Depreciation and amortization35.2136.3324.8826.52
Other expenses813.58788.22566.19488.21
Total expenses4262.453406.392127.631482.15
Profit before tax71.07448.79391.04212.36
Tax expense:
(i) Current tax109.15248.48198.05125.44
(ii) Tax adjustment relating to the earlier year-3.17-0.12-3.25
(iii) Deferred tax (credit) (net)-86.53-77.6-52.76-52.76
Total tax expense19.45170.76145.2969.43
Profit after tax51.62278.03245.75142.93
Other comprehensive income/ (loss)
Items that will not be reclassified to profit or loss :
Remeasurement of (losses) on defined benefit plans-0.12-1.05-2.09-0.74
Income tax impact on the above-0.040.320.730.26
Other comprehensive income/ (loss) for the year, net of tax-0.16-0.73-1.36-0.48
Total comprehensive income/ (loss) for the year, net of tax51.46277.3244.39142.45
Earnings per equity share
Profit for the year attributable to
Equity Shareholder of Parent51.62278.03245.75142.93
Total Comprehensive Income of the year, net of tax
Equity Shareholder of Parent51.46277.3244.39142.45
Earnings per equity share
Equity Shareholder of Parent for the year
Basic (Rs.)4.2324.1823.7815.32
Diluted (Rs.)4.2224.0123.7315.3

Key Parameters:

ParticularsFY21FY20FY19FY18
Gross NPA to Loan Assets7.40%6.50%4.50%4.10%
Credit Cost to Average Assets5.60%2.80%1.00%2.00%
Profit After Tax (In Crores)70.6310.2268.4145.8
Debt to Equity Ratio4.34.54.54.8
Capital Adequacy Ratio %19.719.619.218.7
EPS5.8272615.6
Credit Cost to Avg. Asset5.62.812
Cost of Borrowing %7.88.58.38
Opex to Average Asset %4.24.64.75.2

Hero Fincorp IPO Details

Hero Fincorp is set to launch its IPO with the following key details:

  • Open Date: TBA
  • Close Date: TBA
  • Issue Type: Book Built Issue
  • Total Issue Size: ₹3,668 Cr
  • Fresh Issue Size: ₹2,100 Cr
  • Offer for Sale Size: ₹1,568 Cr

The proceeds from the fresh issue will primarily be used to enhance the company’s capital base for future lending activities.

Hero Fincorp IPO Promoter Holding

Understanding the promoter holding is crucial for assessing investor confidence:

  • Pre-IPO Promoter Holding: 35-39%
  • Post-IPO Promoter Holding: This will be determined after the IPO process.

The dilution of promoter holding through the IPO indicates a strategic move to raise funds while retaining significant control over the company.

Hero Fincorp IPO Date

The exact dates for the IPO opening and closing are yet to be announced. However, it is anticipated that the IPO will take place in 2024. Investors should stay tuned for updates regarding these critical dates.

About Hero Fincorp Limited

Hero Fincorp was established in 1991 and has since evolved into a diversified financial services provider. The company offers a wide range of financial products, including:

  1. Two-Wheeler Financing: Catering to customers looking to purchase two-wheelers.
  2. Personal Loans: Unsecured loans for various individual needs are provided.
  3. MSME Loans: Supporting small and medium enterprises with tailored financing solutions.
  4. Education Loans: Assisting students in financing their education.
  5. Insurance Products: Offering various insurance solutions as part of its diversification strategy.

Business Model and Market Presence

Hero Fincorp operates through an extensive network of over 2,000 retail financing touchpoints within Hero MotoCorp’s ecosystem, covering more than 4,000 cities and towns across India. As of March 2024, the company’s assets under management (AUM) stood at ₹51,821 crore.

Financial Performance Overview

Hero Fincorp has shown impressive growth over the past few years:

Financial YearRevenue (Cr)PAT (Cr)EPS (₹)
FY22₹4,490.58-₹194-15.24
FY23₹6,032.93₹457.3335.92
FY24 (Estimated)TBATBATBA

The significant jump in revenue from FY22 to FY23 indicates a robust recovery and growth trajectory post-pandemic.

Hero Fincorp Share Price

DateApproximate Price (₹)
Nov 20231300
Dec 20231350
Jan 20241450
Feb 20241600
Mar 20241600
Apr 20241650
May 20241900
Jun 20242050
Jul 20242050
Aug 20242050
Sep 20242200
Oct 20242175
Hero Fincorp Unlisted Share Price

Objects of the Issue (Hero Fincorp IPO Objectives)

The funds raised through this IPO will be utilized for several strategic objectives:

  1. Enhancing Capital Base: Strengthening the balance sheet to support future lending activities.
  2. Debt Reduction: A portion of the proceeds will reduce existing debt levels.
  3. Expansion Plans: Funding will also be allocated towards expanding its product offerings and geographical reach.
  4. Digital Transformation: Investing in technology to improve operational efficiency and customer experience.

Hero Fincorp Limited Contact Details

For further inquiries or information regarding the IPO:

  • Registrar: Link Intime India Private Ltd
  • Lead Manager(s): JM Financial Ltd, BofA Securities India Ltd, HSBC Securities and Capital Markets (India) Private Ltd, ICICI Securities Ltd, Jefferies India Private Ltd, SBI Capital Markets Ltd.
  • Corporate Office Address:
    • Hero Fincorp Limited,
    • Plot No.: D/4/4,
    • GIDC Industrial Estate,
    • Dahej – II, Taluka Vagra,
    • District Bharuch – Gujarat – India,
    • Pin Code – 392130
  • Contact Number: +91-22-4918-6200
  • Email Address: [email protected]

Hero Fincorp IPO GMP

Investors seeking to evaluate market sentiment on a forthcoming initial public offering (IPO) should pay close attention to the Grey Market Premium (GMP). Precise GMP data is currently unavailable but is expected to become available closer to the IPO date.

Conclusion

Hero Fincorp’s planned initial public offering (IPO) is an attractive investment opportunity. With its dominant market position and wide range of financial products, the company aims to strengthen its position in India’s financial services market through digital transformation, expansion, and strong revenue growth.

Investors should stay tuned for future announcements on subscription dates and price ranges in order to make educated judgments about participating in this IPO.

FAQs

An offer-for-sale component worth ₹1,568 crore and a new issuance of shares for ₹2,100 crore bring the overall issue size to about ₹3,668 crore.

The precise opening and closure dates are yet TBD. However, they are anticipated to occur in 2024.

The price range announcement will be made closer to the IPO debut date.

JM Financial Ltd., BofA Securities India Ltd., ICICI Securities Ltd., Jefferies India Private Ltd., HSBC Securities and Capital Markets (India) Private Ltd., and SBI Capital Markets Ltd. are among the lead managers.

The cash will be used primarily for capital enhancement for future lending operations, debt reduction, product offering expansion, and digital transformation project investment.

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