Pre-IPO Review & Analysis of Hero FinCorp Limited

Hero Fincorp Limited Unlisted Shares Hero FinCorp Limited (HFCL) was incorporated in 1991 as Hero Honda FinLease Limited, due to change in the ownership of its parent, Hero MotoCorp Limited (Formerly known as Hero Honda Motors Limited), the company changed its name to Hero FinCorp Limited.

HFCL is engaged in the business of financing, leasing, bill discounting and other financial services. HFCL has a wholly-owned subsidiary – Hero Housing Finance Limited which is engaged in the business of providing housing loans.

In 2020, HFCLs retail business is present at 938 dealerships and services are available at more than 4000 touch points spread across more than 1900+ cities, towns and villages. HFCL’s loan against Property, SME and Emerging Corporate Business is operating out of 50 locations on the non-retail segment and processes more than 800 applications every month.

Subsidiary of Hero-Fin Corp: The Company has one wholly-owned subsidiary company viz. Hero Housing Finance Limited (“HHFL”). HHFL had started its lending operations from April 2018. It is an all-inclusive housing finance company providing hassle-free home loans PAN India which includes the following products to its customers: (i) Home Loans, (ii) Loan Against Property, etc.

HHFL has shown tremendous growth and touched loans of INR 556.75 crore during the first year of its operation in FY19.

During the year, Hero-Fin Corp had invested INR 200 crore in HHFL by subscribing to 20,00,00,000 equity shares of the face value of INR 10 each on rights basis.

Key Highlights of 2019 (i) The Hero Motocorp Limited (HMCL) holds 41.03% stake in Hero-Fin Corp. (ii) Hero-Fincorp revenue and net profit have grown by 47.85% and 49.01% over the past three years. (iii) Hero-Fincorp capital adequacy ratio is well above the RBI norm of 15% and stands at 19.03%. (iv) ICRA and CRISIL Limited have assigned ratings for the various facilities availed by the company as AA+. (v) Hero-Fin Corp derives financial, operational, managerial support from Group HMCL (Group HMCL includes Group investment companies and individual promoters). (vi) Hero-Fin Corp has a strong presence of institutional investors like Credit Suisse (Singapore) Limited which holds 2.58% in the company and ChrysCapital which holds 10.56% stake in the company.

Key Highlights of 2020 (i) In FY20, Hero-Fin Corp has become India’s No.1 two-wheeler financing company. (ii) In FY19-20, Hero-Fin Corp has crossed a milestone of covering 50 Lakhs customers, network at 2000 locations, and registered a growth of 40% in loan disbursement as compared to last year. (iii) Hero-Fin Corp has disbursed 17827 Crores of loans in FY19-20.

(iv) Total AUM as on 31.03.2020 stands at 25182 Crores. (v) PAT at 310 Crores, up by 16% as compared to 268 Crores last year. (vi) Employees strength as on 31.03.2020 stands at over 7500. (vii) Hero-Fin Corp has recommended a final dividend of Rs. 2.55/- per equity share for the financial year ended March 31, 2020.

Contact Details : Name : Address : Website : Phone No :

Planify Consultancy India Private Limited 91 Springboard NH8-Udyog Vihar, 90B, Sector 18, Gurugram, Haryana https://www.planify.in 7065560002