Hero FinCorp to Raise ₹4,000 Cr via IPO

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Hero FinCorp Plans to Raise ₹4,000 Crore Via IPO: A Comprehensive Overview

Hero FinCorp, the financial services division of India's largest two-wheeler manufacturer, Hero MotoCorp, has taken significant steps towards its Initial Public Offering (IPO). On May 29, 2024, the Board of Directors of Hero FinCorp approved the decision to go public, targeting a massive IPO worth approximately ₹4,000 crore. This move aims to bolster growth capital and provide an exit strategy for some of its existing investors.

Explore: Hero Motocorp

Understanding the IPO Structure

The Hero FinCorp IPO will comprise both a fresh issue of shares and an offer for sale by existing shareholders. The fresh issue is expected to aggregate up to ₹40,000 million, with a face value of ₹10 per share. This structure is designed to infuse new capital into the company while allowing current investors to partially divest their holdings.

Additional Read: Hero Group- A Detailed Overview

The Strategic Significance of the IPO

Hero FinCorp's decision to go public is a strategic move that highlights its growth trajectory and financial robustness. The company, which operates across various financial services including two-wheeler financing, SME loans, and personal loans, aims to leverage the IPO proceeds to expand its operations and enhance its market presence.

Additional Read: Hero MotoCorp Ltd. – All You Need To Know

Financial Performance and Market Position

In fiscal year 2023, Hero FinCorp reported a significant turnaround with a profit of ₹457.33 crore, up from a loss of ₹195 crore the previous year. The company's total revenue surged to ₹6,003.77 crore, reflecting a 35% increase. Additionally, Hero FinCorp has successfully improved its asset quality, with gross non-performing assets (NPAs) reducing to 5.38% from 7.94%, and net NPAs dropping to 2.79% from 4.63%​​.

Key Stakeholders and Shareholding Pattern

The ownership structure of Hero FinCorp includes prominent stakeholders. Hero MotoCorp holds approximately 40% of the company, while the Munjal family, the promoters, own around 35-39%. The remaining shares are held by private equity investors such as Apollo Global, ChrysCapital, Credit Suisse, and some dealers of Hero MotoCorp​​.

Market Reaction and Stock Performance

The announcement of the IPO has been met with 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% year-to-date.

Prospects and Strategic Goals

Hero FinCorp has set ambitious goals for the future. By FY25, the company aims to have $10 billion in assets and serve over 15 million customers. This expansion plan is supported by its robust financial performance and strategic initiatives, including a significant presence across 4,000 cities and towns in India​​.

Applying for Hero FinCorp IPO through Bajaj Broking

Investors looking to participate in Hero FinCorp's IPO can conveniently do so through Bajaj Broking. The platform offers a seamless process for applying to IPOs, ensuring that investors can capitalize on this significant opportunity. Here’s how you can apply:

Visit Bajaj Broking IPO Page: Navigate to the IPO section on Bajaj Broking's website.

Select Hero FinCorp IPO: Find and select the Hero FinCorp IPO from the list of available IPOs.

Enter Details: Provide the necessary details such as investment amount, preferred lot size, and other required information.

Submit Application: Review your details and submit your application.

By using Bajaj Broking, investors can easily manage their IPO applications and track the status in real time.

Conclusion

Hero FinCorp's upcoming IPO is a landmark event in the financial services sector, highlighting the company's robust growth and strategic vision. With a well-structured IPO plan, significant backing from key stakeholders, and a positive market outlook, Hero FinCorp is poised to achieve new heights. Investors keen on participating in this IPO should stay updated and leverage platforms like Bajaj Broking for a seamless application process.

For more details and to apply for the Hero FinCorp IPO, visit the Bajaj Broking IPO Page.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

For All Disclaimers Click Here: https://bit.ly/3Tcsfuc

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