Hero Fincorp IPO - All About Hero's Financial Arm
Last Updated: August 28, 2025 | 4 min read
Rishabh Oberoi
Financial Content Writer. 5 Years of experience of working and marketing Fintech Solutions.
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Last Updated: August 28, 2025 | 4 min read
Financial Content Writer. 5 Years of experience of working and marketing Fintech Solutions.
Hero Fincorp, the financial Arm of Hero Motors, is preparing to launch its IPO. The NBFC has filed a DRHP(Draft Red Herring Prospectus) with SEBI. The Hero Group is well in the motor services market and Hero Fincorp has built its position in the financial services market.
Let’s explore various aspects of Hero Fincorp IPO from an investor’s point of view.
Incorporated in 1991, Hero Fincorp is the financial arm of Hero Motor Corp. It offers leasing, financing, bill discounting, and related services. The NBFC is involved in commercial lending and consumer finance.
Here are some types of loan Hero Fincorp Offers:
To know more about their products check out their website.
1. High Dependence on Promoters- They source 99% of our two-wheeler loans from our Promoter, Hero MotoCorp Limited’s two-wheeler dealership. Any decline in demand for Hero two-wheelers may adversely affect us;
2. Stage 3 Loans Provisioning - These Loans amounted to 4.02%, 5.11%, and 7.54% of Total Gross Loans as of March 31, 2024, 2023, and 2022, respectively. Non-payment or default by our customers and our inability to provide any adequate provisioning coverage may adversely affect our business.
3. New Credit Risk- The Company’s retail business depends on new-to-credit borrowers We may not be able to properly assess the credit of new-to-credit borrowers, and loans extended to such new-to-credit borrowers may have a higher risk of non-performance or default;
4. Reduced Retail Demand- Retail finance, comprising vehicle loans, personal loans, and mortgage loans, and MSME finance constitute around 80% of Assets under Management. Any adverse can reduce demand for our loans amongst retail and MSME customers.
5. Regulatory issues- Certain Promoters have been and are currently subject to certain regulatory proceedings initiated by authorities. Any adverse outcome in such proceedings may lead to reputational risks.
6. Interest Rate Changes-Changes in interest rates may affect our treasury operations, causing our net interest income to decline.
Hero Fincorp Ltd is not a listed company, however, it is actively traded in the unlisted share market. With the increased operations and credit quality, investors have a gainful opportunity to invest in the currenthero fincorp share pricebefore its IPO.
Trading in unlisted Shares can be tricky due to a lack of information. At Stockify we give investors insights about top trending Pre-IPO shares and help them trade in suchunlisted shares. Increase shareholder wealth by identifying the right companies at the right time.
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