Hero FinCorp IPO, Hero FinCorp IPO news: Hero FinCorp Ltd (HFCL)—an associate company of two-wheeler maker Hero MotoCorp Ltd—said on Wednesday that its board of directors had approved an initial public offering (IPO) of equity shares with a face value of Rs 10 each.

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The IPO will comprise fresh issuance of equity shares aggregating up to Rs 4,000 crore, and an offer for sale (OFS) of equity shares by certain existing and eligible shareholders of the company.

Hero FinCorp shareholding

Hero MotoCorp owns a stake of around 40 per cent in Hero Fincorp. The Munjal family holds around 35-39 per cent while the remainder is held by private equity investors such as Apollo Global and Credit Suisse.

Hero FinCorp IPO valuation

The IPO is expected to be at a valuation of Rs 15,000 crore, at an estimated multiple of 2.8 times the FY23 book value, according to Zee Business research. In January 2022, the company had raised Rs 2,000 crore at a valuation of Rs 12,000 crore.

Hero FinCorp Financials

Particulars                      9MFY24  (crore) Growth YOY
PAT 736  71%
AUM     49,127    +24.7%
Disbursals  24,979    

26%
  • Personal loans account for 34 per cent of AUM
  • Target of Rs 1,000 crore PAT in FY24
  • In April, the company had written off bad loans worth Rs 1,200 crore 

What does Hero FinCorp do?

Hero FinCorp is a non-banking financial company that primarily deals in financing retail and corporate customers through products including two-wheeler financing, term loans, working capital loans, loans against property, bill discounting and leasing.

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