Hero FinCorp IPO 2025: Date, Price, GMP, Review, Allotment Details
The Hero FinCorp IPO, a mainboard IPO from Hero FinCorp Limited, a leading non-banking financial company (NBFC) and subsidiary of Hero MotoCorp, is set to raise approximately ₹3,358 crores. With SEBI approval secured on May 22, 2025, and recent pre-IPO placements, this IPO is a significant opportunity for investors to tap into India’s growing financial services sector. This article provides a comprehensive overview of the Hero FinCorp IPO, including tentative dates, price band, grey market premium (GMP), allotment details, financial performance, and expert review to guide investors.
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Hero FinCorp IPO Details
The Hero FinCorp IPO is a book-built issue comprising a fresh issue of ₹1,790 crores (after a pre-IPO placement of ₹310 crores) and an offer for sale (OFS) of ₹1,568 crores. The face value of each equity share is ₹10. Below are the key details based on the DRHP and recent updates:
| Particulars | Details |
|---|---|
| IPO Opening Date | To be announced (July 24–28, 2025, tentative) |
| IPO Closing Date | To be announced (July 28, 2025, tentative) |
| Allotment Date | To be announced (July 29, 2025, tentative) |
| Listing Date | To be announced (July 31, 2025, tentative) |
| Face Value | ₹10 per share |
| Price Band | ₹[.] to ₹[.] per share (₹1,400 implied from pre-IPO placement) |
| Lot Size | To be announced |
| Issue Size | ₹3,358 crores (approx.) |
| Fresh Issue | ₹1,790 crores (after pre-IPO placement) |
| Offer for Sale | ₹1,568 crores |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Book Running Lead Managers | JM Financial, Axis Capital, BofA Securities, HDFC Bank, HSBC Securities, ICICI Securities, Jefferies India, SBI Capital Markets |
| Registrar | Link Intime India Private Limited |
The IPO allocates 75% to Qualified Institutional Buyers (QIBs), 15% to High Net-Worth Individuals (HNIs), and 10% to retail investors, with a reserved portion for Hero MotoCorp shareholders. The minimum investment for retail investors will be announced once the lot size is finalized.
Hero FinCorp IPO Subscription Status
The subscription status for the Hero FinCorp IPO will be updated daily during the subscription period once the IPO opens in 2025. Investors can track live subscription data on the BSE, NSE, or the registrar’s portal (Link Intime India).
| Category | Subscription (Times) |
|---|---|
| QIB | To be updated |
| NII (HNI) consumer segment and the rapidly formalizing MSME customer segment in India. Operating under the “Hero” brand, the company benefits from the legacy and reputation of its parent, Hero MotoCorp Limited, India’s largest two-wheeler manufacturer by domestic sales in FY24 (5.4 million units). Hero FinCorp operates across 18,603 pin codes with over 4,500 touchpoints, serving 8 million customers as of March 31, 2024. Its wholly-owned subsidiary, Hero Housing Finance, targets the affordable housing segment. |
Hero FinCorp IPO Objectives
The net proceeds from the fresh issue will be used for:
- Augmenting the Tier-I capital base to meet future lending requirements.
- General corporate purposes.
The OFS proceeds will go to selling shareholders, including private equity investors like Apis Growth II, AHVF II Holdings, and Otter Ltd.
Hero FinCorp Financials
Hero FinCorp has shown robust financial growth, with a diversified loan portfolio and improving asset quality. Below is a summary of its financial performance:
| Particulars | FY24 (₹ Crores) | FY23 (₹ Crores) | Growth (%) |
|---|---|---|---|
| Revenue | 8,359.73 | 6,032.93 | 38.58% |
| EBITDA | Not Available | Not Available | Not Available |
| PAT | 637.05 | 479.95 | 32.73% |
The company’s assets under management (AUM) stood at ₹51,820.81 crores as of March 31, 2024, with retail loans contributing 65.08% and MSME loans 20.80%. The company’s credit ratings include AA+ (stable) from CRISIL, ICRA, and CARE, and A1+ for commercial papers.
Hero FinCorp IPO Strengths
- Strong Brand Equity: Leverages the “Hero” brand and Hero MotoCorp’s 4,257 dealer touchpoints for two-wheeler financing.
- Diversified Portfolio: Offers retail (vehicle, personal, mortgage), MSME, and CIF loans, reducing reliance on any single segment.
- Wide Reach: Operates in 2,200+ cities across 18,603 pin codes, serving 8 million customers.
- Technological Edge: Uses AI, ML, and data analytics for underwriting, risk management, and a 94.42% collection rate in FY24.
- Growing NBFC Sector: Positioned to benefit from India’s retail credit market, expected to grow at 17–18% CAGR to ₹87 trillion by FY25.
Hero FinCorp IPO Risks
- High Valuation Concerns: Implied P/E of ~162x at ₹1,400/share (based on FY25 EPS of ₹8.62) is steep compared to peers like Cholamandalam (16.9x).
- Profitability Fluctuations: FY25 EPS dropped to ₹8.62 from ₹49.94 in FY24, indicating inconsistent margins.
- High Interest Costs: Elevated borrowing costs impact bottom-line margins despite low-cost funding access.
- Competitive Market: Faces competition from NBFCs like Bajaj Finance and Cholamandalam, which have stronger profitability metrics.
- Regulatory Risks: NBFC sector is subject to stringent RBI regulations, which may impact operations.
Hero FinCorp IPO Review
The Hero FinCorp IPO offers investors exposure to India’s fast-growing NBFC sector, driven by rising demand for retail and MSME financing. The company’s strong brand, diversified loan portfolio, and extensive network of 4,500+ touchpoints are key strengths. Its AUM of ₹51,820.81 crores and 38.58% revenue growth from FY23 to FY24 reflect robust growth, supported by a 32.73% PAT increase. However, the implied valuation of ₹1,400/share (P/E ~162x based on FY25 EPS) appears steep compared to peers, and inconsistent earnings raise concerns. The absence of GMP data and unannounced price band limits visibility on listing gains. Posts on X suggest a shareholder quota for Hero MotoCorp investors, which may boost retail interest. Long-term investors may find the IPO attractive for its growth potential, but short-term investors should be cautious due to valuation and profitability risks.
Recommendation: Suitable for long-term investors with high risk tolerance, but consult a financial advisor due to valuation concerns.
How to Apply for Hero FinCorp IPO
Investors can apply through ASBA (Applications Supported by Blocked Amount) or UPI via their bank or brokers like Zerodha, Upstox, or Angel One.
Steps to Apply:
- Log in to your demat account or broker’s platform.
- Navigate to the IPO section and select “Hero FinCorp IPO.”
- Enter the number of lots and price (to be announced).
- Provide your UPI ID or bank details for payment.
- Submit the application and approve the UPI mandate.
Check your broker’s IPO application process for detailed instructions.
Hero FinCorp IPO FAQs
When does the Hero FinCorp IPO open and close?
The IPO dates are tentative, expected to be July 24–28, 2025.
What is the price band of the Hero FinCorp IPO?
The price band is not yet announced, but a pre-IPO placement at ₹1,400/share sets expectations.
What is the minimum investment for retail investors?
The minimum investment will be announced once the lot size is finalized.
How can I check the Hero FinCorp IPO allotment status?
Visit the Link Intime India website (https://linkintime.co.in/Initial_Offer/public-issues.html), select “Hero FinCorp IPO,” and enter your PAN, application number, or DP Client ID.
What is the GMP of the Hero FinCorp IPO today?
As of July 16, 2025, the GMP is not available, as grey market activity has not started.
Where will the Hero FinCorp IPO be listed?
The IPO will be listed on the BSE and NSE, tentatively on July 31, 2025.
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