Hero FinCorp, the financial services subsidiary of Hero MotoCorp, India’s prominent two-wheeler manufacturer, has taken a significant step toward launching a mega initial public offering (IPO) in 2024. The targeted size of this IPO is approximately ₹4,000 crore, according to reports from Moneycontrol, although it may fluctuate depending on market conditions and investor share sale strategies.
This large-scale listing has garnered the support of eight distinguished investment banks, who will serve as advisors in this endeavor. The selected banks include JM Financial, Bofa Securities, Jefferies, ICICI Securities, HSBC Securities, UBS, SBI Capital, and HDFC, as confirmed by official sources.
The proposed IPO will involve a combination of primary and secondary share issuance. This approach will not only raise essential growth capital but also provide an exit strategy for some investors, aligning with Hero FinCorp’s strategic financial goals.
Hero FinCorp stands as one of India’s rapidly expanding non-banking financial companies (NBFCs) and has earned recognition for disbursing loans at a rate of one every 30 seconds. In terms of ownership, Hero MotoCorp holds approximately 40% of Hero FinCorp, while the Munjal family, who are the promoters, owns around 35-39% of the company. The remaining shares are in the hands of private equity investors such as Credit Suisse, Apollo Global, and a selection of Hero MotoCorp dealers.
In terms of stock performance, shares of Hero MotoCorp demonstrated resilience on Tuesday, closing 0.37% higher at ₹3,171.80 on the BSE. Over the last year, the stock has surged by 25%, while it has exhibited a 16% increase in the current year, 2023.
This stock’s performance over the past year has seen positive returns for seven out of ten months in the current calendar year. The three months with negative returns include August (-9%), March (-3%), and February (-12.5%). In contrast, the stock achieved a 10% increase in July, representing its highest monthly surge. As of October, the stock has already gained 4%, following a nearly 5% increase in September.
The upcoming Hero FinCorp IPO is set to be a significant event in India’s financial sector, attracting the expertise of eight leading investment banks. As the company advances its IPO plans, its continued growth and strong market performance are expected to drive investor interest.
Hero MotoCorp, one of India’s leading two-wheeler manufacturers, and its financial services arm, Hero FinCorp, are poised for a significant IPO in 2024, with the targeted size set at around ₹4,000 crore. A total of eight renowned investment banks have been selected to serve as advisors in this process. While the offering will combine both primary and secondary share issuance, the final size of the IPO may vary based on market conditions and investor strategies.
The selected investment banks for this substantial listing include JM Financial, Bofa Securities, Jefferies, ICICI Securities, HSBC Securities, UBS, SBI Capital, and HDFC. This IPO aims to generate growth capital and offer an exit opportunity for certain investors, supporting Hero FinCorp’s financial objectives.
In terms of stock performance, Hero MotoCorp’s shares exhibited resilience as they closed 0.37% higher at ₹3,171.80 on the Bombay Stock Exchange (BSE) on Tuesday. Over the past year, the stock has shown remarkable growth, posting a 25% increase, and it has already surged by 16% in 2023.
The performance of Hero MotoCorp’s stock throughout the year has been characterized by positive returns in seven out of ten months in the current calendar year. The remaining three months recorded negative returns, particularly in August (-9%), March (-3%), and February (-12.5%). Conversely, the stock achieved a substantial 10% increase in July, representing its highest monthly gain. As of October, the stock has already risen by 4%, following an impressive 5% gain in September.