IPO Details

Bidding Dates

To be announced

Minimum Investment

To be announced

Price Range

To be announced

Maximum Investment

To be announced

Retail Discount

To be announced

Issue Size

₹3,668.13 Cr

Investor category and sub category

Retail Individual Investors (RII)  |   Non-institutional Investors (NII)  |   Qualified Institutional Buyers (QIB)  |  

Hero Fincorp IPO Important Dates

Important dates with respect to IPO allotment and listing

IPO Opening Date

Jan 02, 70

IPO Closing Date

Jan 02, 70

Basis of Allotment

Jan 02, 70

Initiation of Refunds

Jan 02, 70

IPO Listing Date

Jan 02, 70

About Hero Fincorp IPO

Hero Fincorp IPO is a book-built issue of ₹3,668.13 crore. The offer consists of a fresh issue worth ₹2,100 crore and an offer for sale amounting to ₹1,568.13 crore. The IPO dates and price band have not been announced yet. Investors are awaiting further details, including the final allotment date.

The company has appointed several well-known financial institutions as the book running lead managers. These include JM Financial Limited, Axis Capital Limited, Bofa Securities India Limited, HDFC Bank Limited, HSBC Securities & Capital Markets Pvt Ltd, ICICI Securities Limited, Jefferies India Private Limited, and SBI Capital Markets Limited. MUFG Intime India Private Limited (Link Intime) has been named as the registrar for the issue.

The IPO is expected to attract attention due to Hero Fincorp's established position in the financial services sector. Interested investors should refer to the Hero Fincorp IPO DRHP for complete details regarding the issue structure, financials, and risk factors. More updates, including IPO dates and allotment timelines, will be released once regulatory approvals and market conditions are in place.

Industry Outlook

  1. India’s retail credit market stood at ₹63 trillion in FY23 and is expected to grow at a CAGR of 17–18% to ₹87 trillion by FY25. This growth is driven by increased demand for housing, vehicle, personal, and microfinance loans. 
  2. The NBFC sector has shown consistent growth, with credit expected to grow at 16–18% CAGR by FY25. Retail credit within NBFCs, contributing around 47% of total NBFC credit, is expected to grow at 18–19% CAGR during FY23–FY25. Hero Fincorp, being a well-established NBFC, stands to gain from this trend, especially in vehicle and personal loan financing.

Hero Fincorp IPO Objectives 

The company plans to allocate the net proceeds from the issuance to the following purposes:

  1. The company plans to use part of the IPO proceeds to strengthen the Tier-I Capital base of Hero Fincorp Limited, ensuring sufficient capital is available for future lending activities.
  2. Part of the proceeds to cover expenses related to the public offer.

About Hero Fincorp Limited 

Hero Fincorp Limited is a prominent non-banking financial company (NBFC) offering a wide range of financial products tailored mainly for retail and MSME customers across India. The company provides loans under three major segments: retail, MSME, and CIF. 

Its retail portfolio includes vehicle loans, personal loans, and mortgage loans. As of March 31, 2024, Hero Fincorp reported assets under management (AUM) of ₹51,820.81 crore, with retail loans contributing over 65% and MSME loans over 20%.

Established in 1991, Hero Fincorp has grown its customer base to 11.8 million, including 5 million active retail borrowers. It operates under the trusted “Hero” brand and benefits from the legacy and support of its promoter, Hero MotoCorp Limited, which holds a 41.19% stake in the company. 

This connection gives Hero Fincorp access to over 4,200 dealer touchpoints, aiding the distribution of two-wheeler loans. Hero Fincorp primarily serves the "Aspiring India" segment—households with annual incomes between ₹2 lakh and ₹10 lakh. With rising aspirations for vehicle and home ownership, and the increasing formalisation of MSMEs, the company is well-positioned to address unmet credit needs. 

Its loan products are designed to be flexible and customer-centric, backed by India’s growing digital infrastructure and expanding data availability, which help improve credit assessments and lending efficiency.

How To Check the Allotment Status of Hero Fincorp IPO?

Steps to check IPO allotment status on Angel One’s app:

  1. Log in to the Angel One app.
  2. Go to the IPO Section and then to IPO Orders.
  3. Select the individual IPO that you had applied for and check the allotment status.
  4. Angel One will notify you of your IPO allotment status via push notification and email.

How To Apply for the Hero Fincorp IPO Online?

  1. Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
  2. Locate the IPO Section: Navigate to the 'IPO' section on the platform.
  3. Select IPO: Find and select the Hero Fincorp IPO from the list of open IPOs.
  4. Enter the Lot Size: Specify the number of lots you want to bid for.
  5. Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
  6. Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.

Contact Details of Hero Fincorp IPO 

Registered office: 34, Community Centre, Basant Lok Vasant Vihar, New Delhi 110 057, Delhi, India

Phone: +91 011 4946 7150

E-mail:investors@herofincorp.com

Key Performance Indicators for Hero Fincorp IPO

KPI

Value

ROE (%)

11.57

RoNW (%)

11.05%

Debt/Equity

8.01

Hero Fincorp IPO Prospectus

Hero Fincorp IPO Registrar and Lead Managers

Hero Fincorp IPO Lead Managers

  • Jm Financial Limited
  • Axis Capital Limited 
  • Bofa Securities India Limited
  • Hdfc Bank Limited
  • Hsbc Securities & Capital Markets Pvt Ltd
  • ICICI Securities Limited
  • Jefferies India Private Limited
  • SBI Capital Markets Limited

Registrar for Hero Fincorp IPO

MUFG Intime India Private Limited (Link Intime)

Hero Fincorp IPO Registrar

Financial Performance of Hero Fincorp Limited

Particulars Year ending on March 31, 2024 Year ending on March 31, 2023
Revenue from Operation (in ₹ million) 5,468.20 4,003.34
Profit/ (loss) for the year (in ₹ million) 361.04 226.26
Earnings per Share (₹) 0.57 0.40
Net Worth (in ₹ million) 7,974.39 7,592.25
Return on Equity (RoE) (%) 11.57 9.59
EBITDA (in ₹ million) 41,238.75 29,471.02
Total Borrowings (in ₹ million) 44,700.95 32,441.87

Know before investing

Strengths

6

  1. AUM grew to ₹518,208 million in FY24, showing strong momentum.

  2. Retail and MSME loans form over 85% of total AUM.

  3. Benefits from a strong Hero brand with AAA brand rating in 2024.

  4. Financed 18.66% of Hero MotoCorp’s 5.4 million sales.

  5. Reached 5 million customers with an omni-channel model and pan-India reach.

  6. AI-led platform resolves 95.77% digital queries, boosting efficiency and service.

Risks

6

  1. Heavy dependence on Hero MotoCorp dealerships limits business diversification options.

  2. Stage 3 loans (are those loans where borrowers have failed to repay for a significant period, typically over 90 days) remain high at 4.02% in FY24.

  3. New-to-credit borrowers made up 26.55% of retail AUM FY24.

  4. 39.13% of AUM in FY24 comprised unsecured, high-risk loans.

  5. 16.69% cash-based collections in FY24 increase fraud exposure risk.

  6. IT system disruptions could hurt operations and service delivery efficiency.

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Hero Fincorp IPO Peer Comparison

Name of the Company Total Revenue from Operations (₹ million) Face Value (₹/share) Return on Net Worth (%) Net Asset Value (₹/share)
Hero Fincorp Limited 82,909.04 10.00 11.05 452.92
Bajaj Finance Limited 549,694.90 2.00 18.84 1,239.03
Cholamandalam Investment & Finance Co 191,396.20 2.00 17.46 233.26
Poonawalla Fincorp Limited 31,090.10 2.00 20.61 105.44
Sundaram Finance Limited 72,671.20 10.00 16.63 997.10

Hero Fincorp IPO FAQs

What is the Hero Fincorp IPO?

Hero Fincorp IPO is a book-built issue IPO. The exact IPO dates and price range are yet to be announced.

When will the Hero Fincorp IPO be allotted?

The date for the allotment has not been announced yet.

When will the Hero Fincorp IPO open for subscription?

The IPO subscription window has not been announced yet.

What minimum lot size can retail investors subscribe to?

The minimum lot size retail investors can subscribe to is 1 lot. However, the lot size has not been announced yet.

When will Hero Fincorp IPO list on exchanges?

The listing date for Hero Fincorp IPO has not been announced yet.

What is the issue size of the Hero Fincorp IPO?

The issue size of the Hero Fincorp IPO is up to ₹3,668.13 crore.

What are the open and close dates of the Hero Fincorp IPO?

The open and close dates for Hero Fincorp IPO has not been announced yet.

What would be the listing gains on the Hero Fincorp IPO?

Listing gains cannot be ascertained before the listing of the IPO on the stock exchange.

When will I know if my Hero Fincorp IPO order is placed?

You will receive a notification once your order is successfully placed with the exchange after the bidding starts.

Who is the registrar of Hero Fincorp IPO?

MUFG Intime India Private Limited (Link Intime) is the registrar responsible for managing the IPO allotment process and handling investor queries.

Where is the Hero Fincorp IPO getting listed?

Hero Fincorp IPO is proposed to be listed on the Bombay Stock Exchange and the National Stock Exchange (NSE).