Hero Fincorp Plans IPO After Fundraising
Hero Fincorp, the finance arm of two-wheeler major Hero Motocorp, is planning an initial public offering (IPO) soon after completing a Rs 2,000 crore funding round recently. Hero MotoCorp, its sister concern, and US-based private equity major Apollo Management participated in the round.
Hero FinCorp’s most recent fund-raising round. Prior to this, Hero Motocorp owned more than 41% of the company.
Hero Fincorp shares If it is listed, the NBFC will be the second entity from India’s largest conglomerate, Hero Group, to make its debut on the stock exchange.
the stock exchanges Only So far, Hero Motocorp, the world’s largest two-wheeler manufacturer, is listed on the exchanges. Hero Fincorp returned to black in the December 2021 quarter as the company reported a profit after tax of Rs 13334 crore in the as against a net loss of Rs 196.45 crore in the corresponding period previous fiscal Hero Fincorp is engaged in the business of consumer finance and commercial lending. Its wholly owned
Hero Housing Finance Limited, a subsidiary, is in the business of making home loans.
Rating agencies such as CRISIL and ICRA have rated the company as AA+ and stable.
Incorporated in 1992 as Hero Honda Finlease Limited, Hero Fincorp changed its name after Hero Honda was completely owned by Hero Motocorp following Honda Motor Company’s exit from the two companies’ joint venture. The vehicle financier reported a 75 percent increase in total operating income to Rs 115153.
crore in the third quarter of the current fiscal year, compared to Rs 1070.44 crore in the same period last year
Pawan Munjal of Hero MotoCorp, who is also the chairman of Hero FinCorp, and his extended family own nearly 10% of the NBFC in individual capacity. Bahadur Chand Investments, the family’s investment firm, owns more than 20%.
Apollo is thought to have acquired a 9-10% stake in the previous month’s funding round.
Otter Limited, based in Mauritius, owns a significant minority stake in Hero FinCorp, accounting for 10% of the company.
Other investors in the NBFC include ChrysCapital Credit Suisse and Apis Partners. At the moment, the company has nearly 2000 retail financing touch-points across the Hero MotoCorp network, as well as partnerships with over 2000 satisfied corporate clients. The company marks its presence at more than 1,000 dealerships spread across 1,900 cities, towns and villages
Hero Fincorp has a wholly owned subsidiary, Hero Housing Finance, which has experienced rapid growth in recent years.
In its first year of operation, FY 2018-19, the company disbursed loans to customers worth Rs 55675 crore.
Hero Fincorp invested Rs 200 crore in Hera Housing Finance by subscribing to 20,00,00,000 equity shares with a face value of Rs 10 each.