Hero FinCorp IPO: Comprehensive Overview of Size, Valuation, Date, Financial Performance, Objectives, GMP and Competition

Overview and Details

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.