Hero MotoCorp’s financial arm, Hero FinCorp, is set to launch an initial public offering (IPO) to raise Rs 4,000 crore ($482 million). This move comes after the company received board approval on May 29, 2024. The IPO will be a combination of fresh issuance of shares and an offer for sale (OFS) by existing shareholders.
Key Details of the Hero FinCorp IPO:
- Issue Size: Rs 4,000 crore
- Face Value: Rs 10 per share
- Offer Type: Fresh Issue and Offer for Sale (OFS)
- Hero FinCorp: A Non-Banking Financial Powerhouse
Hero FinCorp is a leading non-banking financial company (NBFC) in India, catering to both retail and corporate customers. Their product portfolio includes:
Kronox Lab Sciences IPO GMP, Date, Lot size, Allotment Status
- Two-wheeler financing
- Term loans
- Working capital loans
- Loans against property
- Bill discounting
- Leasing
Recent Regulatory Action: A Minor Setback
It’s important to note that Hero FinCorp faced a recent penalty from the Reserve Bank of India (RBI) for failing to provide loan terms and conditions in the local language to borrowers. This highlights the importance of regulatory compliance for financial institutions.
Hero MotoCorp Share Price Shows Resilience
Despite the regulatory action, Hero MotoCorp’s share price displayed resilience, closing at Rs 5,157.00 on the BSE on May 30, 2024, with a gain of 0.30%. Notably, the stock has witnessed a significant surge of over 91% in the past year, reaching a record high of Rs 5,225.00 on May 28, 2024.
IPO Timeline Yet Uncertain
While the board has approved the IPO, a concrete date for the offering remains undisclosed. The company will need to navigate various regulatory processes and secure approvals from the Securities and Exchange Board of India (SEBI) before the IPO launch.
Read Also
About Hero FinCorp
- A subsidiary of Hero MotoCorp: Hero FinCorp leverages the extensive network of its parent company, a leading two-wheeler manufacturer.
- Diverse Financial Products: The company offers a wide range of financial solutions, including personal loans, property loans, two-wheeler loans, business loans, car loans, and home loans.
- Leadership: Abhimanyu Munjal currently serves as the CEO and MD of Hero FinCorp.
- Extensive Reach: Hero FinCorp boasts a presence in over 4,000 Indian cities and towns, with around 2,000 retail finance touchpoints within the Hero MotoCorp network itself.
- Shareholding Structure: Hero MotoCorp holds a 40% stake in Hero FinCorp. The Munjal family (promoters) owns approximately 35-39%. Private equity investors like Apollo Global, ChrysCapital, Credit Suisse, and some Hero MotoCorp dealers hold the remaining shares.
Hero FinCorp Future Planning
Hero FinCorp’s IPO is a significant development for the company and the Indian NBFC sector. With its strong parentage, diverse product portfolio, and expansive reach, Hero FinCorp appears well-positioned for future growth. While the exact IPO date remains unknown, investors are likely to keep a close eye on this upcoming offering.