Hero Fincorp offers many products, including two-wheeler financing, SME loans, and Personal loans. The organization has a robust stronghold across 4000 cities and towns in the country, making it a significant player in the financial service sector. Hero Fincorp’s financial performance is applaudable, with a profit of 457 crores in the year 2023, up from a loss of 195 crores the previous year. The company’s total revenue surged to 6 003.77 crore, reflecting 35% the previous year.
Structure and Details
Hero Fincorp’s IPO comprises fresh issues of shares and offers sales to existing shareholders. The fresh issue is expected to aggregate up to 40,000 million, with a face value of Rs10 for each share. The structure is designed to infuse new capital within the company while enabling investors to partially divest the holdings.
IPO announcement met with many positive market reactions, reflecting confidence in Hero FinCorp’s prospects. Hero MotoCorp’s stock has shown resilience and growth, rising 13% in May and 26% yearly. The growth trajectory strives to continue as the company promotes IPO proceeds to expand operations in market presence. Hero Fincorp’s ownership structure has prominent stakeholders like Hero Motorcorp, holding 40% of the company, the Mujal Family, and promoters owing 35-39%. The remaining shares are held by private equity investors such as Apollo Global, ChrysCapital, Credit Suisse, and some Hero MotoCorp dealers.
Hero FinCorp’s 4000crore IPO announcement has met with positive market reactions, reflecting confidence in the company’s prospects. Hero MotoCorp’s stock has shown resilience and growth, rising 13% in May and 26% yearly. Hero FinCorp has set ambitious goals for the future, aiming to have $10 billion in assets and serve over 15 million customers by FY25. The company’s strong financial performance and strategic initiatives support the expansion plan, including a significant presence across 4,000 cities and towns in India. As a diversified financial service company, Hero FinCorp offers a range of products, including two-wheeler financing, affordable housing loans, education loans, and small and medium (SME) loans. With its extensive reach and strong backing from its parent company, Hero FinCorp is poised to capitalize on India’s growing demand for financial services.
The IPO is expected to attract significant investor interest, given the strong brand recognition of Hero Group and the company’s track record of consistent financial performance. In the financial year 2023, Hero FinCorp reported a net profit of INR 1,200 Crores, a 20% increase from the prior year. The proposed IPO is expected to offer an exit opportunity for some existing shareholders, including Hero Group and other institutional investors. The company has not yet disclosed the exact details of the OFS component of the IPO.
Last Words
IPO is likely one of the largest public offerings in the Indian financial services sector in recent years. The successful completion of the IPO will strengthen Hero FinCorp’s position in the market and contribute to the overall growth and development of Indian capital markets. Investors are advised to closely follow developments related to IPO and conduct thorough due diligence before making investment decisions. The company is expected to file the draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) in the coming weeks, which will offer more details about the IPO.Stockify is a premium platform for purchasing Unlisted Shares due to its comprehensive features and user-friendly interface. Stockify empowers investors to diversify portfolios with promising private companies by offering access to many unlisted stocks. With transparent pricing, secure transactions, and expert guidance, Stockify ensures a seamless investing experience. Stockify can be your go-to choice to achieve unlisted shares confidently and conveniently. Stockify ensures that users stay ahead in the dynamic investing world. Buy Unlisted shares at Stockify.
