Hero Fincorp Unlisted Shares
Hero Fincorp Ltd.
INE957N01016
Listing Status: DRHP Filed
About Hero Fincorp Unlisted Shares
Overview of Hero Fincorp Unlisted Shares
Genesis
Hero Fincorp Ltd. is the financial services arm of India's largest two-wheeler maker Hero MotoCorp Ltd.
It offers a wide range of solutions including two-wheeler financing, SME Lending, Personal Loans etc.
Established in 1992 as Hero Honda FinLease Limited, Hero Fincorp underwent a name change after Hero MotoCorp acquired full ownership of 'Hero Honda' following Honda Motor Company's departure from their joint venture.
Currently, the Company’s footprint extends to nearly 2000 retail outlets | 2000 corporate clients | 1000 dealerships, spanning across 1900 cities, towns, and villages.
Rating: “AA+ with stable outlook”: by CRISIL, ICRA and CARE.
Product Portfolio
The Company provides a wide portfolio of financial products including:
Retail Loans |
Corporate Loans |
Two-Wheeler Loans |
SME and Commercial Loans |
Used-Car Loans |
Supply Chain Financing |
Personal Loans |
Working-Capital Loans |
Segment – Wise Performance
Retail Business:
- Two-wheeler loans: Disbursements - 1 Million (8.78 Lakh in FY22) | Total active customer base - over 2.5 Million.
- Asset book: Rs. 8,631 Cr. | 900 dealerships as of FY23.
- 4,100+ touch points across 2,000 cities, towns & villages.
- Disbursing speed: 1 loan every 10 seconds.
SME & Corporate Business:
- 75 Locations.
- Processing Capacity: 3,000 applications per month.
- In FY23, Rs. 7,572 Crs. worth of loans were disbursed.
- Asset book: Rs. 12,538 Crs.
Future Outlook/Strategies:
- Embracing Digital Initiatives: Prioritizing digital initiatives to enhance customer service and promote digital EMI payments.
- Implement Data Analytics: Utilizing data analytics to streamline loan disbursement processes and enhance loan recovery strategies to improve operational efficiency.
- Strengthen Loan Portfolio: Implementing robust risk management practices and ensuring prudent lending practices to mitigate credit risks.
Subsidiary: Hero Housing Finance Ltd.
- Hero Housing Finance Limited (HHFL) is a wholly owned subsidiary of HFCL subsidiary of Hero Fincorp Ltd.
- HHFL commenced its lending operations from April, 2018.
- Products: Housing loans, loan against property and construction loans.
- Revenue from Operations - FY23: Rs. 400 Crs. | FY22: 298 Crs. | Y-o-Y Growth: 34%
- PAT - FY23: Rs. 22.63 Crs. | FY22: Rs. 2.09 Crs. | Y-o-Y Growth: 982%
Shareholding Pattern
- Hero MotoCorp Ltd. owns around 40% stake in Hero Fincorp.
- Pawan Munjal, chairman of Hero Fincorp, and his extended family hold nearly 10% in the NBFC in individual capacity. The family's investment firm Bahadur Chand Investments holds over 20%.
- Apollo Global Management is estimated to have secured a 9-10% stake in the funding round held in Feb 2022.
- Mauritius-based Otter Limited has a significant stake of 10% in Hero Fincorp.
- ChrysCapital, Credit Suisse and Apis Partners are the other investors in the NBFC.
Funding Information
In its latest funding round (4th Feb 2022), Hero Fincorp Ltd. secured ₹2,000 crore ($267 million) from several investors for business expansion plans.
Date |
Company |
Investment Amount |
Feb 2022 |
Apollo Global Management |
₹937 crore ($125 million) |
Feb 2022 |
Hero MotoCorp |
₹700 crore ($94 million) |
Apollo Management’s stake in Hero Fincorp post funding: 10%(Approx)
Estimated Valuation: 9370 Crs
Number of outstanding Shares: 12,73,06,674
Price Per Share: Rs. 736 (As of Feb 22)
Timeline
- 1991-2012: Incorporated as Hero Honda Finlease Ltd. | Renamed as Hero Fincorp Ltd.
- 2013-19: Received equity infusion of INR 106 Cr. | Launched Two-Wheeler Financing business, Used Car Business | 3000 touchpoints in 1700+ locations
- 2020: Achieved the status of India's No.1 Two-Wheeler Financier. | Among the Top 3 NBFCs in Pre-Owned Car Loans. | Secured a fund-raising agreement of INR 1,075 Cr. from PE Investors & Promoters.
- 2021: Launched a Customer Service App. | Introduced 'SimplyCash', a digital Loan Product.
- 2022: Launched Partnership Loans and achieved Disbursal of INR 1,900 Cr.+ in the first year.
- 2023: Achieved the highest-ever Disbursals in FY23 | Launched EV Financing | Crossed 10 Mn. Customers | Recognized as 'Great Place to Work' for the 6th year in a row.
Loan-Book Split
Segment |
Percentage |
Retail Lending |
|
· Two-Wheeler Lending |
23% |
· Used Car Financing |
5% |
· Personal Loans |
26% |
· Home Loans |
7% |
Retail SME Lending (which includes unsecured business loan, loan against property, supply chain finance) |
19% |
Corporate Lending |
15% |
Lending on the CROMS Platform |
5% |
Total |
100% |
Insights of Hero Fincorp Unlisted Shares
Financial Highlights:
INR in Crs
PARTICULARS | FY24 | FY23 | FY22 |
REVENUE | 8291 | 6402 | 4739 |
EBITDA | 4055 | 2901 | 1399 |
PAT | 637 | 480 | -192 |
EPS | 50 | 38 | -15 |
Dividend History
Highlights:
- FY23: AUM: INR 41,497 Crs. | FY22: AUM: INR 32,953 Crs. | Growth: 26% Y-o-Y.
- Highest ever Loan - Disbursals of INR 27,713 Cr. (Consolidated) in FY23.
- The Company experienced a robust 35% Y-o-Y increase in revenue in FY23.
- PAT surged significantly, shifting from a loss of ₹190 Crs, to ₹480 | Growth: 350%.
- In FY23, GNPAs improved to 5.38% from 7.94% in FY22 | NNPAs improved to 2.79% from 4.63% in FY22.