Hero Fincorp IPO Date, Share Price, GMP – Allotment Details
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
Contents
- 0.1 Fundamental Table
- 0.2 Net Sales (in cr.)
- 0.3 Total Income (in cr.)
- 0.4 Operating Profit (in cr.)
- 0.5 Net Profit (in cr.)
- 0.6 Shareholder Funds (in cr.)
- 0.7 Total Assets (in cr.)
- 0.8 Financial Data (in cr.)
- 0.9 Hero Fincorp Unlisted Share
- 0.10 Shareholding Pattern:
- 0.11 Return on Equity %
- 0.12 Gross NPA %
- 0.13 Capital Adequacy Ratio %
- 0.14 Cost to Income Ratio %
- 0.15 Financials Balance Sheet:
- 0.16 Income Statement:
- 1 Key Parameters:
- 2 Hero Fincorp IPO Details
- 3 Hero Fincorp IPO Promoter Holding
- 4 Hero Fincorp IPO Date
- 5 About Hero Fincorp Limited
- 6 Business Model and Market Presence
- 7 Financial Performance Overview
- 8 Hero Fincorp Share Price
- 9 Objects of the Issue (Hero Fincorp IPO Objectives)
- 10 Hero Fincorp Limited Contact Details
- 11 Hero Fincorp IPO GMP
- 12 Conclusion
- 13 FAQs
Metric | Value |
Company Name | Hero Fincorp Ltd. |
Issue Size | ₹3,668 Cr |
Fresh Issue | ₹2,100 Cr |
Offer for Sale | ₹1,568 Cr |
Price Band | To be announced |
Lot Size | To be confirmed |
Listing Date | To be announced |
Promoter Holding Pre-IPO | 35-39% |
Promoter Holding Post-IPO | To be determined |
Net Sales (in cr.)
Year | Net Sales |
FY20 | 3,799.9 |
FY21 | 4,278.1 |
FY22 | 4,738.7 |
FY23 | 6,401.6 |
FY24 | 8,290.9 |
Total Income (in cr.)
Year | Total Income |
FY20 | 3,855.2 |
FY21 | 4,333.5 |
FY22 | 4,797.7 |
FY23 | 6,447.6 |
FY24 | 8,359.7 |
Operating Profit (in cr.)
Year | Operating Profit |
FY20 | 2,441.3 |
FY21 | 1,816.6 |
FY22 | 1,457.7 |
FY23 | 2,947.1 |
FY24 | 4,123.9 |
Net Profit (in cr.)
Year | Net Profit |
FY20 | 278 |
FY21 | 51.6 |
FY22 | -191.9 |
FY23 | 480 |
FY24 | 637.1 |
Year | Shareholder Funds |
FY20 | 4,471.3 |
FY21 | 4,967.8 |
FY22 | 4,770 |
FY23 | 5,247.8 |
FY24 | 5,772 |
Total Assets (in cr.)
Year | Total Assets |
FY20 | 27,199.1 |
FY21 | 29,996 |
FY22 | 34,399.1 |
FY23 | 43,451.2 |
FY24 | 53,204.7 |
Financial Data (in cr.)
FY20 | FY21 | FY22 | FY23 | FY24 | YOY % FY24 | CAGR % FY24 | |
Net Sales | 3799.9 | 4278.1 | 4738.7 | 6401.6 | 8290.9 | 29.5 | 21.5 |
Total Income | 3855.2 | 4333.5 | 4797.7 | 6447.6 | 8359.7 | 29.7 | 21.3 |
Net Profit | 278 | 51.6 | -191.9 | 480 | 637.1 | 32.7 | 23 |
Shareholder Funds | 4471.3 | 4967.8 | 4770 | 5247.8 | 5772 | 10 | 6.6 |
Total Assets | 27199.1 | 29996 | 34399.1 | 43451.2 | 53204.7 | 22.4 | 18.3 |
EPS | 16.99 | 3.15 | -11.72 | 29.32 | 38.92 | 32.7 |
Metric | Value |
Market Cap | ₹ 35,598 Cr. |
Current Price | ₹ 2,175 |
Lot Size | 25 |
52W High | ₹ 2,200 |
EPS | 38.92 |
P/B | 6.2 |
Face Value | 10 |
Debt to Equity | 6.21 |
Stock P/E | 55.9 |
Book Value | ₹ 352.7 |
52W Low | ₹ 1,300 |
Demat Account | Both |
ISIN | INE957N01016 |
Valuation | 5 Star |
No. of Shares | 16.37 Cr |
Holding | Mar’21 | Mar’20 | Mar’19 | Mar’18 | Mar’17 |
Promoters | 10,12,56,432 | 10,12,56,432 | 9,12,03,151 | 7,78,25,729 | 7,20,52,024 |
Non-Promoters | 2,60,50,242 | 2,60,50,242 | 2,29,93,770 | 2,06,19,892 | 2,06,27,692 |
Return on Equity %
Company | FY21 | FY20 |
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 %
Company | FY21 | FY20 |
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 %
Company | FY21 |
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 %
Company | FY21 |
Hero Fincorp Ltd | 41.40% |
Adani Capital Private Ltd. | 73.00% |
Aditya Birla Finance Ltd. | 31.20% |
Return On Asset %
Company | FY21 | FY20 |
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)
Particulars | 31-Mar-21 | 31-Mar-20 | 31-Mar-19 | 31-Mar-18 |
Assets | ||||
Financial Assets | ||||
Cash and cash equivalents | 1106.87 | 2343.94 | 106.68 | 0.69 |
Bank balance other than cash and cash equivalents | 116.13 | 0.52 | 0.55 | 0.48 |
Trade receivables | 7.98 | 7.87 | 4.34 | 5.78 |
Loans | 26194.69 | 24263.09 | 19771.2 | 13158.06 |
Investments | 1917.24 | 78.84 | 811.98 | 53.72 |
Other financial assets | 113.11 | 32.74 | 51.62 | 41.2 |
Non-financial assets | ||||
Current tax assets (net) | 42.43 | 40.84 | 16.39 | 10.12 |
Deferred tax assets (net) | 341.04 | 254.55 | 176.63 | 123.14 |
Property, plant and equipment | 53.05 | 72.27 | 82.08 | 96.26 |
Right-of-use assets | 40.15 | 56.9 | – | – |
Capital Work in progress | – | 0.04 | – | – |
Intangible assets | 22.54 | 19.32 | 21.69 | 14.49 |
Intangible assets under development | 0.62 | 0.61 | 0.16 | – |
Other non-financial assets | 40.18 | 27.6 | 25.41 | 18.61 |
Total assets | 29996.03 | 27199.13 | 21068.73 | 13522.55 |
Liabilities and equity | ||||
Liabilities | ||||
Financial liabilities | ||||
Trade payables | ||||
Total outstanding dues of micro enterprises and small enterprises; and | 0.88 | 1.3 | 0.02 | 0.08 |
Total outstanding dues of creditors other than micro enterprises and small enterprises | 256.79 | 167.36 | 119.58 | 72.77 |
Debt securities | 4235.94 | 5253.94 | 6852.95 | 5672.09 |
Borrowings (other than debt securities) | 19156.51 | 16130.76 | 9334.69 | 4813.65 |
Subordinated liabilities | 642.91 | 573.06 | 448.78 | 300 |
Lease liabilities | 44.37 | 59.02 | ||
Other financial liabilities | 595.58 | 405.62 | 569.42 | 359.51 |
Non-financial liabilities | ||||
Current tax liabilities (net) | 8.6 | 60.14 | 33.53 | 14.87 |
Provisions | 41.69 | 34.31 | 24.05 | 14.9 |
Other non-financial liabilities | 45 | 42.28 | 33.85 | 26.23 |
Total liabilities | 25028.27 | 22727.79 | 17426.87 | 11274.1 |
Equity | ||||
Equity share capital | 127.31 | 121.54 | 114.15 | 98.45 |
Other Equity | 4840.45 | 4349.8 | 3527.71 | 2150 |
Total equity | 4967.76 | 4471.34 | 3641.86 | 2248.45 |
Total liabilities and equity | 29996.03 | 27199.13 | 21068.73 | 13522.55 |
Income Statement:
Consolidated Statement of Profit and Loss (All amounts are in Rupees Crore except share data and unless otherwise stated)
Particulars | 31-Mar-21 | 31-Mar-20 | 31-Mar-19 | 31-Mar-18 |
Income | ||||
Revenue from operations | ||||
Interest income | 3877.79 | 3417.56 | 2247.51 | 1533.88 |
Dividend income | 0.74 | 0.74 | 0.5 | 0.01 |
Profit on sale of investments | 23.94 | 58.16 | 47.28 | 3.64 |
Rental income | 5.84 | 10.89 | 17.48 | 22.85 |
Net gain on fair value changes | 22.66 | – | 2.63 | 3.19 |
Insurance commission | 13.17 | 11.09 | 0.48 | – |
Others charge | 333.94 | 301.42 | 202.59 | 130.94 |
Total revenue from operations | 4278.08 | 3799.86 | 2518.47 | 1694.51 |
Other income | 55.44 | 55.32 | – | – |
Total income | 4333.52 | 3855.18 | 2518.47 | – |
Expenses | ||||
Finance costs | 1710.31 | 1629.22 | 1124.71 | 683.66 |
Impairment allowance on loans | 1417.74 | 649.86 | 174.3 | 136.15 |
Employee benefits expenses | 285.61 | 302.76 | 237.55 | 147.61 |
Depreciation and amortization | 35.21 | 36.33 | 24.88 | 26.52 |
Other expenses | 813.58 | 788.22 | 566.19 | 488.21 |
Total expenses | 4262.45 | 3406.39 | 2127.63 | 1482.15 |
Profit before tax | 71.07 | 448.79 | 391.04 | 212.36 |
Tax expense: | ||||
(i) Current tax | 109.15 | 248.48 | 198.05 | 125.44 |
(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 expense | 19.45 | 170.76 | 145.29 | 69.43 |
Profit after tax | 51.62 | 278.03 | 245.75 | 142.93 |
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 | -0.04 | 0.32 | 0.73 | 0.26 |
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 tax | 51.46 | 277.3 | 244.39 | 142.45 |
Earnings per equity share | ||||
Profit for the year attributable to | ||||
Equity Shareholder of Parent | 51.62 | 278.03 | 245.75 | 142.93 |
Total Comprehensive Income of the year, net of tax | ||||
Equity Shareholder of Parent | 51.46 | 277.3 | 244.39 | 142.45 |
Earnings per equity share | ||||
Equity Shareholder of Parent for the year | ||||
Basic (Rs.) | 4.23 | 24.18 | 23.78 | 15.32 |
Diluted (Rs.) | 4.22 | 24.01 | 23.73 | 15.3 |
Key Parameters:
Particulars | FY21 | FY20 | FY19 | FY18 |
Gross NPA to Loan Assets | 7.40% | 6.50% | 4.50% | 4.10% |
Credit Cost to Average Assets | 5.60% | 2.80% | 1.00% | 2.00% |
Profit After Tax (In Crores) | 70.6 | 310.2 | 268.4 | 145.8 |
Debt to Equity Ratio | 4.3 | 4.5 | 4.5 | 4.8 |
Capital Adequacy Ratio % | 19.7 | 19.6 | 19.2 | 18.7 |
EPS | 5.8 | 27 | 26 | 15.6 |
Credit Cost to Avg. Asset | 5.6 | 2.8 | 1 | 2 |
Cost of Borrowing % | 7.8 | 8.5 | 8.3 | 8 |
Opex to Average Asset % | 4.2 | 4.6 | 4.7 | 5.2 |
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:
- Two-Wheeler Financing: Catering to customers looking to purchase two-wheelers.
- Personal Loans: Unsecured loans for various individual needs are provided.
- MSME Loans: Supporting small and medium enterprises with tailored financing solutions.
- Education Loans: Assisting students in financing their education.
- 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 Year | Revenue (Cr) | PAT (Cr) | EPS (₹) |
FY22 | ₹4,490.58 | -₹194 | -15.24 |
FY23 | ₹6,032.93 | ₹457.33 | 35.92 |
FY24 (Estimated) | TBA | TBA | TBA |
The significant jump in revenue from FY22 to FY23 indicates a robust recovery and growth trajectory post-pandemic.
Date | Approximate Price (₹) |
Nov 2023 | 1300 |
Dec 2023 | 1350 |
Jan 2024 | 1450 |
Feb 2024 | 1600 |
Mar 2024 | 1600 |
Apr 2024 | 1650 |
May 2024 | 1900 |
Jun 2024 | 2050 |
Jul 2024 | 2050 |
Aug 2024 | 2050 |
Sep 2024 | 2200 |
Oct 2024 | 2175 |
Objects of the Issue (Hero Fincorp IPO Objectives)
The funds raised through this IPO will be utilized for several strategic objectives:
- Enhancing Capital Base: Strengthening the balance sheet to support future lending activities.
- Debt Reduction: A portion of the proceeds will reduce existing debt levels.
- Expansion Plans: Funding will also be allocated towards expanding its product offerings and geographical reach.
- 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.