Hero Fincorp IPO: Hero Fincorp, the financial services division of two -wheeler manufacturer Hero MotoCorp, has been approved by SEBI to bring an initial public issue (IPO) of Rs 3,668 crore. However, now investors interested in IPO are eagerly waiting for this IPO. ALSO READ: BAT sold 2.5 percent stake in ITC, deal for 12,927 crores, what happened to shares?
According to the documents filed before the Securities and Exchange Board of India (SEBI), the proposed IPO will be a new issue of Rs 2,100 crore and a combination of sales offers of Rs 1,568 crore.
According to the information given by SEBI, Hero Fincorp was approved to bring an IPO on 22 May. It filed its initial documents before SEBI in August to bring the IPO. However, the IPO’s date has not been announced yet.
Know about Hero Fincorp: Hero Fincorp is a non-banking financial institution (NBFC) that presents a diverse series of financial products mainly in India for retail, micro, small and medium enterprises (MSME) customer classes. The company had a total assets of 53205 crore in 2024 and earned a profit of 8360 crores.
Hero Fincorp’s strength: Hero Fincorp targets retail and MSME customers in India. The Hero brand has also got a tremendous benefit. This has funded a significant part of the company’s two -wheelers. The company had a strong customer base of 11.8 million by March 2024. The company has more than 7,500 employees, 140 branches and 4,257 Hero MotoCorp dealer TouchPoint.
What is weakness: The two -wheeler loan of Hero Fincorp is completely dependent on Hero MotoCorp. If there is a decrease in the demand for Hero MotoCorp vehicles, then the company will suffer a direct loss. In FY 2024, the company’s NPA was 4.02% of the total gross loans.
Edited by: Nrapendra Gupta
