Hero FinCorp

Hero FinCorp pauses unsecured lending over borrower over-leverage, shifts focus to secured loans, and targets 14% Y-o-Y growth in FY26 disbursements as part of balance sheet overhaul

Hero FinCorp, the financial services division of two-wheeler manufacturer Hero MotoCorp, has raised Rs 260 crore in a pre-IPO placement round. This fund mobilisation led to a reduction in fresh issue size to Rs 1,840 crore from the earlier planned Rs 2,100 crore. The total IPO size now stands at Rs 3,408 crore, which includes a Rs 1,568 crore offer-for-sale (OFS) by existing investors. This marks a reduction from the earlier planned Rs 3,668 crore. Those selling shares in the OFS are -- AHVF II Holdings Singapore II Pte. Ltd, Apis Growth II (Hibiscus) Pte. Ltd, Link Investment Trust (through Vikas Srivastava) and Otter Ltd. In the pre-IPO round executed on June 5, Hero FinCorp entered into investment agreements with 12 investors, allotting 18.57 lakh shares at Rs 1,400 per share on June 13, raising Rs 259.99 crore, according to a public announcement by the company. Under this, the company allotted shares worth Rs 69 crore to Shahi Exports, RVG Jatropha Plantation (Rs 50 crore), Mo

Hero FinCorp, the financial services division of two-wheeler manufacturer Hero MotoCorp, has received Sebi's go-ahead to float a Rs 3,668 crore Initial Public Offering (IPO), an update with the markets regulator showed on Wednesday. The proposed IPO is a combination of fresh issue of equity shares worth Rs 2,100 crore and an Offer For Sale (OFS) of Rs 1,568 crore by investor shareholders, according to the Draft Red Herring Prospectus (DRHP). Those selling shares in the OFS are -- AHVF II Holdings Singapore II Pte. Ltd, Apis Growth II (Hibiscus) Pte. Ltd, Link Investment Trust (through Vikas Srivastava) and Otter Ltd. As per the update, Hero FinCorp, which filed its preliminary IPO papers with Sebi in August, obtained its observations on May 22. In Sebi's parlance, obtaining observations means its go-ahead to launch the public issue. Going by the draft papers, proceeds from the fresh issue will be used to increase the company's capital to meet future funding needs for lending ...

Among the selling shareholders for Hero FinCorp are AHVF II Holdings (Apollo Management), Apis Growth, Link Investment Trust, and Otter

Hero FinCorp mainly offers two-wheeler financing, leveraging 2,000 retail touchpoints of Hero MotoCorp

S&P Global Ratings on Tuesday said a strong recovery is underway in the Indian financial sector and upgraded four financial institutions, including Union Bank of India and Bajaj Finance. The move reflects S&P's view that domestic financial institutions in India will continue to improve their asset quality, benefiting from good economic prospects and structural improvements in the operating conditions. "S&P Global Ratings today upgraded Bajaj Finance, Hero FinCorp, Shriram Finance, and Union Bank of India... A strong recovery is underway in the Indian financial sector," S&P said. S&P expects India's financial institutions, especially the public sector banks, to sustain their improvement in capital positions. Bank earnings will also likely be comparable to other emerging market peers, although margins could decline as the banks reprice deposits. "We expect earnings for our rated non-bank finance companies to remain healthy despite pressure from the rising cost of ...

The rating upgrade reflects the view that they will continue to improve their asset quality, benefiting from good economic prospects and structural improvements in operating conditions

Expects stable financial performance; Exposed to volatile asset quality like Small biz

The acquirer is owned by investment funds managed by affiliates of Apollo Management, L.P. Apollo Management, L.P., its affiliates, and investment funds managed by its affiliates

The country's largest two-wheeler maker Hero MotoCorp on Monday said its board has approved to invest up to Rs 700 crore in Hero FinCorp Ltd (HFCL).

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Today's rating action concludes the review for downgrade initiated on April 13, 2020, Moody's said in statement

The expectation was that the company's asset quality will deteriorate on the back of rising loan delinquencies and defaults

The company's board has considered and approved an investment of up to Rs 450 crore in HFCL by subscribing to the issue of shares by way of private placement in one or more tranches

The outlook was revised down for EXIM India, HDFC Bank, Hero FinCorp, HUDCO, IRFC, and SBI

The sale of the fully-owned insurance unit is crucial for Anil Ambani

Hero FinCorp, a non-banking financial company and the second biggest business of Hero Group, has raised Rs 1,000 crore from ChrysCapital, Credit Suisse and the group promoters to expand finance to retail and corporate customers as it gears to become a complete financial services provider. The funds will be used to expand the credit services over the next 12-18 months from the current base of a million retail customers. The company was set up in 1991 as Hero Honda Finlease in 1991 and was rechristened to Hero FinCorp in 2011 after the split with long-time partner Honda. Private equity firm ChrysCapital Advisors has invested Rs 570 crore and Credit Suisse has brought in Rs 132 crore, its most prominent equity investment in the country. The promoters of Hero Group have infused Rs 300 crore. The NBFC, which has an asset size of Rs 8,000 crore, gets one-fourth of its business through financing purchases of Hero's two wheelers. Other segments are loans against property, home loans and loans

The money was raised from ChrysCapital, Credit Suisse and promoters of Hero Group