Hero FinCorp, a major player in the financial industry, has announced its plans to go public in 2024. The company has selected eight investment banks to facilitate its Initial Public Offering (IPO), with an aim to raise Rs 4,000 crores through a combination of primary and secondary share issuance. This comes after a significant turnaround in the company's financial performance under CEO Abhimanyu Munjal.
The company, which counts the Munjal family, Hero MotoCorp, and Apollo Global's Hybrid Value Fund among its major stakeholders, made a profit in fiscal 2023 after suffering a loss in fiscal 2022. Revenue increased by over 35% during this period. Additionally, the firm managed to improve its gross non-performing assets (NPAs) to 5.38%, while net NPAs decreased to 2.79%. By March, the loan book was worth Rs 36,213 crore, largely contributed by retail and corporate loan segments.
In February 2022, Hero FinCorp raised Rs 2,000 crore in growth capital as it set ambitious goals for the future. The company aims to have $10 billion in assets and serve over 15 million customers by FY25. To help achieve these targets, it operates a wholly-owned home finance subsidiary, Hero Housing Finance.
In recent times, the company's unlisted stock has surged by 28%, reflecting investor confidence in its growth trajectory and strategic initiatives. As the firm prepares for its IPO in 2024, it will be interesting to see how it navigates the journey from private to public ownership.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.