Hero FinCorp IPO: Comprehensive Overview of Size, Valuation, Date, Financial Performance, Objectives, GMP and Competition
Learn about the upcoming Hero FinCorp IPO, including its size, financial details, objectives, and expected impact on the market. Discover everything you need to know about this highly anticipated IPO in 2024.
Updated : 2 months ago
Overview and Details
| Parameter | Details |
|---|---|
| IPO Size | ₹4,000 crore ($480 million), consisting of both fresh issue and Offer for Sale (OFS) by existing shareholders |
| Expected IPO Date | Late 2024 or early 2025, pending regulatory approvals from SEBI |
| GMP (Grey Market Premium) | Currently not available, but market sentiment suggests strong investor interest |
| Valuation | The company’s valuation is estimated to be around ₹30,000 crore ($3.6 billion), with potential upside during listing |
| Financial Performance (FY2024) | Revenue: ₹8,265 crore (24.7% YoY growth) PAT: ₹736 crore (71% YoY growth) Assets Under Management (AUM): ₹51,821 crore |
| EPS (Earnings Per Share) | Not available; estimated P/E ratio will be disclosed in the IPO prospectus |
| Debt-to-Equity Ratio | Moderate, as the company focuses on retail and MSME lending, to be disclosed in detail in the prospectus |
| Primary Objectives of the IPO |
|
| Use of Proceeds | Utilize funds for business expansion, repayment of existing debt, and enhancing technological capabilities |
| Key Investors | Promoters: Munjal family (35-39%) Private Equity: Apollo Global, ChrysCapital, Credit Suisse Corporate: Hero MotoCorp (40%) |
| Market Competition |
|
| IPO Managers | JM Financial, BofA Securities, HSBC Securities, ICICI Securities, Jefferies India, SBI Capital Markets |
| Registrar | Link Intime India Private Ltd is the registrar for the IPO |
| Shareholding Pattern |
|
| Company Culture | Hero FinCorp focuses on a culture of growth and financial inclusivity, offering diverse lending products tailored for MSMEs, retail, and rural sectors. |
| Products and Services | Hero FinCorp offers two-wheeler financing, loans for MSMEs, term loans, working capital loans, and loans against property. |
| Team and Founders |
|
| Growth Prospects | Hero FinCorp aims to become a leading NBFC in India by expanding its retail and MSME lending portfolio, supported by a strong network of 4,000+ cities and towns. |
Hero FinCorp, a leading non-banking financial company (NBFC), is set to launch its highly anticipated Initial Public Offering (IPO) in late 2024 or early 2025. The company aims to raise ₹4,000 crore through a combination of fresh equity and Offer for Sale (OFS) by existing shareholders. As a subsidiary of Hero MotoCorp, Hero FinCorp has a diverse lending portfolio, including two-wheeler loans, MSME loans, and retail financing. The funds raised from the IPO will be used to enhance its capital base, reduce debt, and expand its presence across India.
Hero FinCorp IPO Details
The Hero FinCorp IPO is structured to raise ₹4,000 crore through a mix of fresh issue and Offer for Sale (OFS). The company plans to use the proceeds for business expansion and to reduce its debt levels. The IPO is expected to open in late 2024 or early 2025, subject to SEBI approvals. Investors are advised to keep an eye on the grey market premium (GMP) for a better understanding of the market sentiment.
Price Band and Lot Size
The price band and lot size for the Hero FinCorp IPO are yet to be announced. However, given the company’s strong financials and growth potential, the IPO is expected to be priced competitively. Investors should monitor updates from the company and the stock exchanges for more details.
Hero FinCorp’s Growth Story
Hero FinCorp was founded in 1991 as an NBFC focused on providing financing solutions for Hero MotoCorp's customers. Since then, the company has expanded its product offerings to include a range of financial services such as personal loans, loans against property, and term loans for MSMEs. As of March 2024, Hero FinCorp's assets under management (AUM) stood at ₹51,821 crore, with retail and MSME loan verticals contributing significantly to this figure. The company has a strong presence in over 4,000 cities and towns across India, supported by nearly 2,000 retail financing touchpoints within Hero MotoCorp's network. The upcoming IPO is seen as a strategic move to strengthen its capital base and expand its market presence further.
IPO Subscription Status
The Hero FinCorp IPO is expected to receive substantial interest from both institutional and retail investors, given the company's strong growth trajectory and market presence. Early indications from market analysts suggest high subscription rates, particularly from investors looking to gain exposure to the financial services sector. Investors are advised to stay updated on the subscription status during the bidding period to make informed decisions.
Grey Market Premium (GMP)
Currently, the GMP for Hero FinCorp IPO is not available, but market expectations are positive. Investors should keep an eye on the GMP closer to the IPO date, as it can provide insights into the expected listing gains and overall market sentiment. The GMP is likely to reflect the strong demand for shares in the secondary market before they are officially listed.
How to Apply for Hero FinCorp IPO?
Investors can apply for the Hero FinCorp IPO through the ASBA (Application Supported by Blocked Amount) mechanism available in their bank or through UPI-enabled online platforms like Groww, Zerodha, and others. The process is simple and secure, allowing both retail and institutional investors to participate in the IPO. Ensure you have a valid Demat account and are aware of the bidding dates to avoid missing out.
Why Invest in Hero FinCorp’s IPO?
Hero FinCorp has demonstrated robust growth, supported by its parent company, Hero MotoCorp. The company's diverse lending portfolio, strong presence in the retail and MSME segments, and strategic expansion plans make it an attractive investment opportunity. The funds raised through the IPO will help reduce debt, enhance its lending capabilities, and fuel its growth in new and existing markets. For investors looking to diversify their portfolio with exposure to the financial services sector, Hero FinCorp's IPO presents a compelling option.
Financials and Valuation
As of March 2024, Hero FinCorp reported assets under management (AUM) of ₹51,821 crore, reflecting a robust 24.7% YoY growth. The company's profit after tax (PAT) stood at ₹736 crore, with a target of ₹1,000 crore for FY2024. The company's diverse financial services portfolio, including retail, MSME, and two-wheeler financing, has driven its strong performance. The IPO is expected to be valued competitively, offering investors an opportunity to gain exposure to a leading NBFC with a strong growth trajectory.
Final Allotment and Listing Date
The final allotment date for Hero FinCorp's IPO will be announced closer to the closing of the subscription period. Shares will be credited to the investors' Demat accounts before the listing date, which is expected to be in early 2025. Investors should monitor official announcements and stay updated on the latest developments regarding the allotment and listing dates.
What to Expect from Hero FinCorp’s IPO?
Hero FinCorp's IPO is expected to be a key milestone for the company, enabling it to enhance its capital base and support its future growth initiatives. With strong backing from Hero MotoCorp and a diversified financial services portfolio, the company is well-positioned to leverage the growing demand for credit in India. Analysts predict that the IPO could attract significant investor interest, potentially outperforming other NBFC IPOs in the market.
FAQ related to Hero FinCorp IPO 2024
- What is the expected Hero FinCorp IPO date and how can investors participate in it?
The Hero FinCorp IPO is expected to launch in late 2024 or early 2025. Investors can participate by applying through their Demat account via brokers like Zerodha, Groww, or Paytm Money. - What is the price band for the Hero FinCorp IPO?
The exact price band has not yet been announced. Investors should stay updated for official announcements from the company and the stock exchanges. - What is the minimum investment amount required for the Hero FinCorp IPO?
The minimum investment amount will be based on the lot size, which is yet to be disclosed. Investors are advised to keep an eye on updates for more details. - How will Hero FinCorp utilize the funds raised from its IPO?
Hero FinCorp plans to use the funds raised for business expansion, debt reduction, and enhancing its lending portfolio, particularly in the MSME and retail sectors. - What are the key financial metrics of Hero FinCorp before the IPO launch?
As of March 2024, Hero FinCorp's AUM was ₹51,821 crore, with a PAT of ₹736 crore. The company aims to reach a PAT of ₹1,000 crore in FY2024. - What are the risks associated with investing in the Hero FinCorp IPO?
Risks include economic slowdown, regulatory changes, and increased competition in the NBFC sector. Investors should consider these factors before investing. - How does the Hero FinCorp IPO impact the financial services market in India?
Hero FinCorp's IPO is expected to enhance competition in the NBFC space, encouraging other players to strengthen their offerings and expand their market presence. - What are analysts predicting for Hero FinCorp's post-IPO performance?
Analysts are optimistic about Hero FinCorp's post-IPO performance, predicting strong growth driven by its diversified product portfolio and strategic expansion plans. - Can foreign investors participate in the Hero FinCorp IPO?
Yes, foreign institutional investors (FIIs) can participate in the Hero FinCorp IPO, and strong demand is expected due to the company's solid fundamentals and market potential. - What is Hero FinCorp’s growth strategy post-IPO?
Hero FinCorp aims to expand its lending portfolio, reduce debt, and strengthen its presence in Tier 2 and Tier 3 cities to capture a larger market share post-IPO.
