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

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

Shareholder Funds (in cr.)

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

Hero Fincorp Unlisted Share

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

Shareholding Pattern:

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:

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 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.

Hero Fincorp Share Price

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:

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