Raajmarg Infra Investment Trust IPO...
05 Mar, 2026
Hero Fincorp Limited IPO
Hero FinCorp Ltd. submitted its appendix to the DRHP on November 17, 2025, regarding the company's planned IPO for ₹3,358 crore. Hero FinCorp IPO is a book-built issue, comprising ₹1,790 crore as fresh issue shares and an ₹1,568.13 crore Offer for Sale (OFS).
The price range and schedule will be provided at a later date, and the company will be listed on the BSE and NSE. The Hero FinCorp IPO has a strong set of Book Running Lead Managers (BRLMs), comprising Axis Capital, BofA Securities, JM Financial, HDFC Bank, HSBC, ICICI Securities, Jefferies, and SBI Capital Markets. The issue will be registered with Link Intime India Pvt. Ltd.
Company Background
Hero FinCorp Ltd. was incorporated in December 1991 with the name 'Hero Honda Finlease Ltd.' However, its operation began in January 1992. Its headquarters is located in Delhi, and it was originally established to support the financing activities of the overall Hero Honda group. Following a change in its parent group's structure, it came to be known as 'Hero FinCorp Ltd.' in July 2011.
This company is a systemic and non-deposit-taking NBFC. Originally a captive financier, it has transformed into a diversified retail and corporate lender, having operations across multiple states in India and meeting the requirements of both the "Bharat" and "India" markets.
Operations & Product Range
The activities of Hero FinCorp Ltd. revolve around specialized financial services in various verticals. The customers range from individual retail borrowers to SMEs and large corporates. Some of the key product offerings include:
- • Providing loans for motorcycles and scooters, primarily leveraging the Hero MotoCorp dealership network.
- • Unsecured credit products for existing and new retail customers, like Personal and Loyalty Loans.
- • Used Car and Loyalty Loans to expand its retail footprint into the four-wheeler segment.
- • SME and Corporate Lending that offers working capital, term loans and bill discounting solutions to businesses.
Facilities & Capacity
Hero FinCorp Ltd. is a financial services entity whose "capacity" is derived from its massive distribution channel, technological platform, etc. They have an impressive reach of branches and touch points located together with Hero MotoCorp dealerships.
The company has made significant investments in its marketing efforts, including accelerating loan processing times and catering to a broad customer base. The company is presently operating with the focus being on keeping its Provision Coverage Ratio (PCR) remarkably high, with the ratio being 55.42% on September 30, 2025.
Brands & Market Presence
Hero FinCorp Ltd. works under the name of the Hero FinCorp brand and gets the benefit of the brand name “Hero” in India, as it is a highly trusted and used brand among users (two-wheeler users). It holds a dominant position in the two-wheeler financing market, acting as a preferred financier for India’s largest two-wheeler manufacturer.
Its market presence remains strictly in the country and mainly in the Indian credit market. Hero FinCorp Ltd. acquires different approvals from the RBI to function as an NBFC with excellent ratings in the borrowing cost acquisition mechanism.
Revenue Streams & Business Model
The primary revenue stream or business model of Hero FinCorp Ltd. focuses on:
- • Interest Income: It represents the spread between the cost incurred (from borrowing funds from banks/NCDs & CPs) and the rates being charged to customers.
- • Fee and Commission Income: This income is derived from loan processing fees, insurance sales and other commission-related activities.
- • Retail vs. Universal Business Diversification: The retail loan business is represented by 62% of Assets Under Management (AUM) with high-yielding investing opportunities, while corporate loans consist of the remaining portion.
Management & Shareholding
Promoters & Shareholding
The promoters of Hero FinCorp Ltd. are Hero MotoCorp Ltd., Bahadur Chand Investments Pvt. Ltd., Hero Investcorp Pvt. Ltd. and the members of the Munjal Family, Dr. Pawan Munjal and Renu Munjal. Hero MotoCorp Ltd., as of September 30, 2025, holds 40.45% equity stakes in the company. After the listing of the Hero FinCorp IPO, the promoter will face dilution of their equity as they will further reduce their stakes in the company through the OFS.
Board & Key Management
The board & key management of Hero FinCorp Ltd. have able leadership in their ranks, including their Managing Director & CEO, Abhimanyu Munjal, who has played an integral role in the company’s expansion plans. The board also has Director Kaushik Dutta. The financial management for the company is headed by CFO Sajin Mangalathu, while Shivendra Suman is the CS & Compliance Officer.
WHAT IS GMP?
GMP (Grey Market Premium) is the difference between the IPO price and the grey market price. It is the premium amount paid for the traded IPO shares. It plays an important role in IPOs as it reflects how the IPO would react on the listing day.
A grey market is a place where shares/stocks are traded before being listed officially on the stock exchange.
Hero Fincorp Limited IPO GMP
| GMP Date | IPO Price | GMP | Last Updated |
|---|---|---|---|
| - | - | - | - |
**The GMP prices displayed here are solely for informational purposes related to the grey market news. India IPO does not engage in or facilitate grey market trading, nor are these rates (sub2) indicative of any trading activity. We also do not recommend or endorse participation in the grey market.**
Hero Fincorp Limited IPO Details
| Detail | Description |
|---|---|
| IPO Date | [.] |
| Listing Date | [.] |
| Face Value | ₹10 per Equity Share |
| Issue Price Band | [.] |
| Lot Size | [.] |
| Sale Type | Fresh Issue and Offer for Sale (OFS) |
| Total Issue Size | (Approx. ₹3,358.14 Cr) |
| Fresh Issue(Ex Market Maker) | (Approx. ₹1,790 Cr) |
| Offer for Sale | (Approx. ₹1,568.13 Cr) |
| Issue Type | 100% Book Built Offer |
| Listing At | BSE and NSE |
| Share Holding Pre Issue | 1,27,30,667 shares |
Hero Fincorp Limited IPO Timeline
| Detail | Description |
|---|---|
| IPO Open Date | [.] |
| IPO Close Date | [.] |
| Tentative Allotment | [.] |
| Initiation of Refunds | [.] |
| Credit of Shares to Demat | [.] |
| Tentative Listing Date | [.] |
| Cut-off time for UPI mandate confirmation | 5:00 PM on the Bid/Offer Closing Day |
Hero Fincorp Limited IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Individual investors (Retail) (Min) | 1 Lot | [.] | ₹14,000 – ₹15,000 |
| Individual investors (Retail) (Max) | Up to 14 Lots | [.] | Up to ₹2,00,000 |
| S-HNI (Min) | Over 14 Lots | [.] | Over ₹2,00,000 |
| S-HNI (Max) | Up to 70 Lots | [.] | Up to ₹10,00,000 |
| B-HNI (Min) | Over 70 Lots | [.] | Over ₹10,00,000 |
Hero Fincorp Limited IPO Promoter Holding
| Share Holding Pre Issue | Share Holding Post Issue |
|---|---|
| Promoter Holding Pre Issue | 77.72% (on a fully diluted basis) |
| Promoter Holding Post Issue | [.] |
Competitive Strength:
- • Strong Brand Heritage, “Hero” Brand Legacy – an instant trust and deeply rooted relations for India’s automotive and Rural setup.
- • Extensive Distribution Reach, as access to the pan-India dealership network, which works as a low-cost customer acquisition channel for retail loans.
- • Having a well-diversified portfolio of retail (two-wheeler, personal loans) and corporate (SME, working capital) business segments can offset risks associated with each area.
Hero Fincorp Limited IPO Financial Information
| Period Ended | Assets | Total Income | Profit After Tax | Net Worth | Reserves and Surplus | Total Borrowing | ||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| H1 FY 2025-26 | 6,081.25 | 5,476.51 | 494.49 | 5,856.91 | 5,744.02 | 5,398.37 | ||||||||||||||||||||||||||||||||||
| FY 2024-25 | 5,340.54 | 8,416.03 | 643.08 | 5,112.78 | 5,001.35 | 4,732.12 | ||||||||||||||||||||||||||||||||||
| FY 2023-24 | 4,345.92 | 6,423.46 | 480.00 | 4,649.34 | 4,541.01 | 3,803.20 | ||||||||||||||||||||||||||||||||||
| FY 2022-23 | 3,383.02 | 4,796.72 | 191.90 | 3,734.20 | 3,627.17 | 2,941.50 | ||||||||||||||||||||||||||||||||||
| Amount in ₹ Crore | ||||||||||||||||||||||||||||||||||||||||
Key Performance Indicator
| KPI | Values |
|---|---|
| ROE | 16.89% (Annualized) |
| ROCE | [.] |
| Debt/Equity | 0.92 |
| PAT Margin | 9.03% |
| EBITDA Margin | 75.81% |
| Price to Book Value | [.] |
| Pre IPO | Post IPO | |
|---|---|---|
| EPS (Rs) | ₹50.04 (Restated Basic) | [.] |
| P/E (x) | [.] | [.] |
IPO Objectives
The company intends to utilize the net proceeds from the fresh issue of the Hero FinCorp IPO for the following specific purposes:
- • Augmenting the capital base to meet future capital requirements for lending
- • General Corporate Purposes
(Hero FinCorp Ltd. will not receive any proceeds from the Offer for Sale (OFS), as those funds are paid directly to the selling shareholders.)
Conclusion
Hero FinCorp IPO gives investors the chance to be part of the growth story of an SIF Mas and an NBFC, which happens to be mentored by one of India’s most renowned business families. Backed by the company’s strong revenue base of more than ₹9,800 crore and the company’s focused move towards the digital-first business in the retail lending segment, they can easily capture the accelerating growth in the demand for credit, both in Tier I and in the rural markets of the country. Though the banking sector itself is quite competitive, the company’s fusion with the Hero MotoCorp family gives it the perfect foundation for the next phase of execution as a publicly listed company.
IPO DRHP Status
| # | Description | Date | File |
|---|---|---|---|
| 1 | Filed with SEBI/Exchange | 31-07-2024 | - |
| 2 | SEBI/Exchange approval received | 22-05-2025 | - |
Learn about IPO fundamentals in our IPO Process guide. Check upcoming IPOs in the IPO Calendar Explore our Private Placement Services, Debt Syndication Services, Business Valuation Services for IPO guidance.
Read More IPO ReviewsFrequently Asked Questions (FAQs)
-
What is the total issue size in Hero Fincorp IPO?
The aggregate offer amount is up to ₹3,358.14 crore, which consists of a fresh issue amounting to ₹1,790 crore and an offer for sale (OFS) amounting to ₹1,568.13 crore by existing shareholders.
-
What are the promoters of Hero FinCorp Ltd.?
The main promoters are Hero MotoCorp Ltd., Bahadur Chand Investments Pvt. Ltd., Hero Investcorp Pvt. Ltd. and members of the Munjal family.
-
The major products and services that Hero FinCorp Ltd. provides?
Hero FinCorp Ltd. primarily focuses on two-wheeler loans, personal loans, pre-owned vehicle loans, as well as loans to Small & Medium Enterprises (SMEs) and corporate loans.
-
What will be the utilization plan of Hero FinCorp’s IPO proceeds?
The proceeds of the fresh issue of the Hero FinCorp IPO will be mainly utilized for increasing the company's capital to provide financing support in the future and for other general corporate needs.
-
On which stock exchanges will the Hero FinCorp IPO be listed?
The equity shares are intended to be listed on both the BSE and the NSE stock exchanges.
