F&O
Hero Fincrop IPO
Hero Fincrop Limited
Hero Fincrop IPO Details
| Bidding Dates | Min. Investment | Lot Size | Price Range |
|---|---|---|---|
| To be announced | -- | -- | -- |
| Issue Size | IPO Doc |
|---|---|
| 3668.13Cr | DRHP PDF |
About Hero Fincrop
Founded in
1991
Managing director
Mr Abhimanyu Munjal
Parent organisation
Hero Fincrop Limited
Strengths & Financials of Hero Fincrop
Strengths
Risks
Hero Fincorp claims to have strategically expanded its product portfolio beyond two-wheeler loans to include a wide range of secured and unsecured loans, catering to both retail and MSME customers. As of FY24, retail and MSME loans accounted for 65.08 percent and 20.80 percent of its total assets under management (AUM).
Hero Fincorp claims to benefit from a deep-rooted relationship with Hero MotoCorp Limited, leveraging its brand recognition and extensive dealer network. In FY24, Hero MotoCorp Limited held a 41.19 percent equity stake in Hero Fincorp and provided financing for a significant portion of Hero MotoCorp’s two-wheeler sales.
The company claims to have developed a comprehensive, omnichannel distribution network that spans 18,603 pin-codes across India, aided by both digital and physical channels. Hero Fincorp also claims to source a substantial portion of its business through partnerships with 3,612 partners, including used car dealers, digital partners, and direct sales agents (DSAs).
Hero Fincorp claims to follow a ‘customer first approach’ that allows it to design customised products for retail and MSME clients, addressing unique financing needs across metro, urban, and rural regions. The company further states this approach enhances cross-sell potential, as demonstrated by a product per customer (PPC) ratio of 4.25 in FY24, 3.15 in FY23, and 3.52 in FY22.
The company claims to integrate technology seamlessly into customer onboarding, underwriting, loan servicing, and collections, providing a fully digital experience. It claims to leverage artificial intelligence (AI), machine learning (ML), and real-time analytics to improve customer acquisition, reduce wait times, and streamline operations, boosting both operational efficiency and customer satisfaction.
The company claims to have consistently improved its asset quality over the years. As of FY24, the gross non-performing assets (GNPA) ratio is 4.02 percent, a reduction from 5.11 percent in FY23 and 7.54 percent in 2022. Similarly, the net non-performing assets (NNPA) ratio has declined to 2.00 percent in 2024, compared to 2.69 percent in 2023 and 4.43 percent in 2022.
Leveraging advanced data analytics, Hero Fincorp claims to enhance its risk management by tracking credit trends and predicting default probabilities. It has integrated a technology-driven collections infrastructure, improving efficiency with a 94.42 percent collection rate in FY24, 95.07 percent in FY23, and 83.00 percent in FY22, through mobile app-based repayments and a four-tier collections team.
The company claims to maintain a well-balanced mix of short-term and long-term assets and liabilities, minimising liquidity and interest rate risks.
The company has received credit ratings of AA+ with a stable outlook from Credit Rating Information Services of India Limited (CRISIL), Investment Information and Credit Rating Agency of India Limited (ICRA), and Credit Analysis and Research Limited (CARE), and an A1+ rating for commercial papers from CRISIL, CARE, and ICRA as of FY24.
The company has witnessed a consistent increase in revenue from operations. It increased from Rs 4,738.65 crore in FY22 to Rs 6,401.59 crore in FY23 and Rs 8,290.90 crore in FY24.
Hero Fincrop Financials
*All values are in Rs. Cr
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