In Hero FinCorp, Hero MotoCorp retains roughly 40% ownership, while the Munjal family, who are the promoters, holds approximately 35-39%. The remaining shares are held by private equity investors such as Apollo Global, ChrysCapital, Credit Suisse, and some dealers of Hero MotoCorp.

Hero FinCorp, the financial services division of India's largest two-wheeler manufacturer Hero MotoCorp, is making significant strides toward a major initial public offering (IPO) in 2024. According to several industry insiders, the company has chosen a consortium of eight investment banks to assist with the IPO.

The selected advisors for this notable listing include JM Financial, Bofa Securities, Jefferies, ICICI Securities, HSBC Securities, UBS, SBI Capital, and HDFC. It's noteworthy that UBS had completed the global acquisition of Credit Suisse in June 2023.

The proposed IPO is expected to comprise a combination of primary and secondary share issuances, serving to raise growth capital and offer an exit opportunity for some existing investors. While the targeted size of the IPO is approximately Rs 4,000 crores, this figure may be subject to adjustments based on market conditions and the strategies of the investors involved.

It remains uncertain whether additional banks will be included in the deal at a later stage.

In February 2022, Hero FinCorp Ltd successfully secured Rs 2,000 crore in growth capital from various investors, including Apollo Management and its parent company, Hero MotoCorp. Apollo Global Management played a pivotal role by committing Rs 937 crore through its Hybrid Value Fund, while Hero MotoCorp injected Rs 700 crore into the company. Abhimanyu Munjal, the Joint Managing Director and Chief Executive of Hero FinCorp, highlighted the significance of this capital infusion, stating that it would support their growth aspirations to reach $10 billion in assets and cater to over 15 million customers by the fiscal year 2025.

Founded in 1991, Hero FinCorp is a non-banking financial company that primarily specializes in providing financing solutions to both retail and corporate customers. Their product portfolio includes offerings such as two-wheeler financing, term loans, working capital loans, loan against property, bill discounting, and leasing.

The company made a significant financial turnaround, reporting a profit of Rs 457.33 crore in fiscal year 2023, a notable improvement from the loss of Rs 195 crore in the preceding fiscal year. Hero FinCorp's total revenue from operations also witnessed robust growth, surging by over 35% to reach Rs 6,003.77 crore compared to Rs 4,440.58 crore in the prior year. Furthermore, the company's gross non-performing assets (NPAs) demonstrated improvement, reducing to 5.38% from 7.94% in the previous year, while net NPAs decreased to 2.79% from 4.63%.

As of March 31, Hero FinCorp's loan book stood at approximately Rs 36,213 crore, with the retail and corporate loan segments contributing 57% and 22% to the portfolio, respectively. It's worth noting that Hero FinCorp also operates a dedicated home finance subsidiary, Hero Housing Finance, which is a wholly-owned subsidiary of the company.