Hero FinCorp, the Financial Services arm of the USD 10 Billion Hero Group, is one of India’s largest privately owned Non-banking Finance Companies (NBFC). Hero FinCorp (HFCL) is engaged in the business of financing, leasing, bill discounting and other financial services.
Hero FinCorp Share Price Today is currently hovering near Rs 700 – 710 per share range. For buying and selling unlisted Pre-IPO shares of Hero FinCorp and all companies, please call Dharawat Securities on 8108303330 Check out our limited period special price offer on first cum first serve basis and valid till stocks last.
Hero Fincorp share price in unlisted market has been historically in range of Rs 200 to Rs 1450 per share. Total Available Shares: 5000+; Lot Size: 25 Shares.
Hero Fincorp Limited Unlisted Shares Details:
| Sector | NBFC |
| Face Value: | ₹ 10 Per Equity Share |
| ISIN: | INE957N01016 |
| Group: | Hero |
| Current Unlisted Share Price: | ₹ 700 Per Equity Share Negotiable as per quantity |
Company profile
HFCL is the financing arm of the Hero group and is the captive financier for HMCL’s two-wheeler’s sales.
The company expanded outwards in 2012, and has since grown its loan book from INR 300 Cr. to approximately INR 30,000 Cr. over the past 10 years.
Hero FinCorp today offers a wide range of products and services across Retail, SME, and Corporate Lending segments. Overall, the company serves over seven million customers through its 4,000 plus touchpoints, spread across more than 2,000 locations.
Hero FinCorp also has a dedicated home finance arm called Hero Housing Finance which is a 100% subsidiary with an Asset Book of over INR 2,500 Cr. and presence across major domestic markets.
Hero FinCorp is one of India’s fastest growing NBFCs, disbursing a loan every 30 seconds. On the corporate lending front, the company has forged extremely strong relationships with over 2000 high growth companies. We are well on our way towards building India’s largest one-stop financial services company.
Board of Directors
Pawan Munjal
Renu Munjal
Abhimanyu Munjal
D N Davar
Sanjay Kukreja
Pradeep Dinodia
The company has a diverse board of six members and is chaired by Mr Pawan Munjal (MD/CEO of HMCL).
The operations of the company are headed jointly by Ms Renu Munjal (MD) and Mr Abhimanyu Munjal (Joint MD and CEO) who have extensive experience in the financial services industry and are supported by an experienced second level of management.
Group Company – Hero Housing Finance
Incorporated as a subsidiary of Hero FinCorp, Hero Housing Finance Ltd. (HHFL) comes as a natural extension to the group’s motto of serving the man on the street. Focused on having a diversified presence across India, HHFL is looking to be an all-inclusive housing finance company with offerings across affordable, mid-market and prime segments. The company will focus on end-to-end digital lending to enable a joyful home ownership experience for our customers.
Financial Performance
| Particulars | 2020-21 | 2019-20 | 2018-19 |
|---|---|---|---|
| Total Income (₹ Crores) | 4333.52 | 3855.18 | 2518.47 |
| PAT (₹ Crores) | 51.62 | 278.03 | 245.75 |
| Diluted EPS | 4.22 | 24.01 | 23.73 |
| Book Value per Share (₹) | 390 | 351 | 320 |
On a consolidated basis, HFCL reported a net loss of Rs. 192 crore on a total gross asset base of Rs. 36,009 crore in FY2022 against a PAT of Rs. 52 crore on a total gross asset base of Rs. 31,276 crore in FY2021.
As on March 31, 2022, the company’s consolidated loan portfolio comprised two-wheeler finance with a portfolio share of (25%), dealer inventory funding (4%), pre-owned car finance (6%), personal loans (22%), home loans (6%), retail SME loans (17%), and corporate loans (20%).
On a consolidated basis, HFCL’s assets under management stood at Rs. 33,052 crore (on-balance sheet loan book of Rs. 32,950 crore) as on March 31, 2022, compared to Rs. 27,490 crore (on-balance sheet loan book of Rs. 27,472 crore) as on March 31, 2021.
HHFL extends housing loans and LAP to retail borrowers and had assets under management of Rs. 2,824 crore (on-balance sheet loan book of Rs. 2,722 crore) as on March 31, 2022, compared to Rs. 2,369 crore as on March 31, 2021.
Hero FinCorp Funding details
| Investment date | Funding amount | Funded by |
|---|---|---|
| February 2022 | Rs. 2,000 cr | Apollo Management |
| May 2020 | Rs. 291 cr | Chrys Capital |
| September 2016 | Rs. 570 cr | Chrys Capital |
| September 2016 | Rs. 132 cr | Credit Suisse |
| September 2016 | Rs. 300 cr | Hero Group |
HFCL Shareholding Pattern
Promoter entities Hero MotoCorp Ltd. owned 41.18% stake, Bahadur Chand Investments Ltd. held 20.33% and Hero InvestCorp. Ltd held 2.7% stake in Hero Fincorp.
HFCL has strong presence of institutional investors like Credit Suisse (Singapore) Limited which holds 2.3% in the company and ChrysCapital Otter Ltd. which holds 10.12% stake in the company. APIS Growth II (HIBISCUS) Pte . Ltd. held 1.61%.
Outlook
HMCL is the flagship entity of the Hero group having comfortable financial and credit risk profile and strong position in the two-wheeler industry.
Being a Hero group entity, HFCL has been able to mobilise funds from banks and capital markets at competitive rates.
Going forward, Hero Fincorp plans to continuously expand its offerings and geographic presence, whilst offering class leading financial services to all sections of society.
The facilities of Hero Fincorp Limited (HFCL) factor-in the strong parentage and strategic importance of HFCL to the Hero group, which is also reflected by periodic capital infusion by the latter in HFCL.
The company has experienced management team and comfortable capitalisation profile.
Hero Fincorp has diversified its product profile as the company has entered into newer asset classes like personal loans and unsecured business loans that are relatively riskier, and the portfolio has limited seasoning in those segments.
Comparable companies like Bajaj Finance, Cholamandalam, Shriram Transport Finance, Mahindra & Mahindra Financial Services enjoy rich valuations on BSE, NSE
Recent Developments
Hero FinCorp Raises USD 267 Million (INR 2,000 Cr.) of Growth Capital from Apollo, Hero MotoCorp & Others – 7 February 2022
Hero FinCorp, one of India’s largest privately owned Non-banking Finance Companies (NBFC) announced a fundraise of INR 2,000 Crore (USD 267 Million).
Apollo, through its Hybrid Value Fund, has committed INR 937 Cr. (USD 125 Million) along with Hero MotoCorp (a key sponsor of Hero FinCorp) committing INR 700 Cr. (USD 94 Million), the balance being contributed by others.
With this fresh capital infusion, the net worth of the company – which is rated AA+ by ICRA & CRISIL – will be INR 6782 Cr. (USD 900 Million) on a consolidated basis.
The latest fundraise will support Hero FinCorp’s growth strategy as the Company continues to further expand its product offerings across India’s Retail, SME, and Corporate Lending Landscape.
Moody’s assigns ‘Baa3’ rating to Hero FinCorp: July 2019
Global ratings agency has assigned a ‘Baa3’ local and foreign currency issuer rating to Hero FinCorp Limited with a stable outlook suggesting that the Pawan Munjal-led non-banking financial company may raise debt funds through bonds.
Moody’s Investors Service’s ‘Baa3’ rating rationale which has a standalone assessment of ‘Ba3’, a speculative grade, assumes a high likelihood of support from Hero MotoCorp, India’s largest two-wheeler company, which also has a direct stake of 41% in the NBFC.
Hero FinCorp’s promoter group, which includes Hero MotoCorp, other Hero Group entities and individuals linked to the Munjal family, owned 79.9% stake at the end of March 2019. The promoter group, Moody’s report stressed, has consistently infused equity capital in Hero FinCorp along with purchasing shares from the non-promoter shareholders. Notably, Otter Limited and Credit Suisse own a 13% stake in the company.
Hero FinCorp looks to acquire 100% stake in Reliance General Insurance
Hero FinCorp is set to place an offer to acquire 100 percent stake in Reliance General Insurance, as per reports. Reliance Capital is the parent company of Reliance General Insurance. It is likely to seek about Rs 6,000 crore for 100% stake in the latter.