Hero FinCorp IPO
mainboardupcomingAbout the company
Incorporated in 1991, Hero FinCorp Limited is a scaled NBFC (Non Banking Financial Company) in India that offers retail, MSME (Micro, Small, and Medium Enterprises) and CIF loans. It provides vehicle, personal, and mortgage loans under its umbrella of retail finance. Under the MSME category, it offers secured loans against property and construction finance, and unsecured loans in the form of business loans and supply chain finance. It also offers secured loans to corporate & institutional customers like promoters, holding companies and operating entities of large corporations under its CIF wing. It benefits from the long standing heritage of the “Hero” brand as Hero MotoCorp Limited holds a 41.19% share in the company. In FY24, it was the largest two wheeler manufacturer in India in terms of domestic unit sales of two-wheeler. It caters to the expanding yet underpenetrated customer segment called “Aspiring India” within the annual income range of ₹0.20 to ₹1.00 million, which made up 72% of its retail customers in FY24. It reaches its customers with a team of 8,313 active field agents from 1,228 outsourced field agencies, outsourced call centers staffed with 545 executives, an in-house team of 5,653 employees, and 4,257 Hero MotoCorp Limited dealers and sub-dealers as of 31 March 2024. Its funding sources include non-convertible debentures, commercial papers, term loans, working capital facilities, and external commercial borrowings from financial institutions. Between FY22 and FY24, it saw a CAGR rise of 16% in its AUM (Assets Under Management). Moreover, the number of customer households in the income range that it caters to are expected to grow from 103 million in FY22 to 181 million in FY30, which could benefit the company. And now, Hero FinCorp Limited is coming out with its initial public offer (IPO). The total IPO issue size is ₹3,668 crore comprising fresh issue, aggregating to ₹2,100 crore, as well as an offer for sale, aggregating to ₹1,568 crore. The money raised from the fresh issue will be utilized to augment its capital base to meet future business requirements. Its shares will be listed on the NSE and BSE.
GMP trend (Grey Market Premium by date)
| Date | GMP (₹) | Est. Listing | Change |
|---|---|---|---|
| 04 Sep | ₹0 | ₹0 | -1 |
| 03 Sep | ₹1 | ₹1 | -1 |
| 02 Sep | ₹2 | ₹2 | +1 |
| 01 Sep | ₹1 | ₹1 | -1 |
| 31 Aug | ₹2 | ₹2 | +2 |
| 30 Aug | ₹0 | ₹0 | -1 |
| 29 Aug | ₹1 | ₹1 | 0 |
| 28 Aug | ₹1 | ₹1 | 0 |
Strengths
Risks
Financial performance (₹ Cr)
IPO Roadmap / Timeline
IPO Opens
UpcomingTBABidding starts for all investor categories
IPO Closes
UpcomingTBALast day to place your bid
Basis of Allotment
UpcomingTBAShare allotment finalised
Refund Initiation
UpcomingTBARefunds credited for non-allottees
Credit to Demat
UpcomingTBAAllotted shares credited to demat account
Listing on Exchange
UpcomingTBAShares list on NSE / BSE
Post-close dates are indicative as per SEBI T+3 listing framework and may change per registrar updates.
Lot size & minimum investment
| Investor Type | Min Lots | Min Shares | Min Amount | Max Lots | Max Amount | Notes |
|---|---|---|---|---|---|---|
| Retail | 1 | 0 | ₹0 | Infinity | ₹NaN | ≤ ₹2,00,000 |
| sHNI (Small HNI) | Infinity | NaN | ₹NaN | Infinity | ₹NaN | ₹2L – ₹10L |
| bHNI (Big HNI) | Infinity | NaN | ₹NaN | Infinity | ₹NaN | > ₹10L |
Shares reserved per category & allotment probability
| Category | Reservation | Shares Offered | Amount (₹ Cr) | Shares Bid | Subscribed | Allotment % |
|---|---|---|---|---|---|---|
| QIB | 50% | NaN | NaN | NaN | 0.00x | 100% |
| NII | 15% | NaN | NaN | NaN | 0.00x | 100% |
| Retail | 35% | NaN | NaN | NaN | 0.00x | 100% |
Retail is a lottery-based allotment when oversubscribed; QIB/NII get pro-rata. Probability ≈ 1 / subscription times (100% if under-subscribed).