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Hero FinCorp IPO
Hero FinCorp IPO — date, issue size, SEBI status & DRHP details 2025
Hero FinCorp filed its draft red herring prospectus (DRHP) with SEBI on 28 Nov 2025 for an IPO of a fresh issue of up to ₹1,790 crore and an offer for sale of up to ₹1,568.13 crore. SEBI's observations have lapsed without a launch; the company would need to refile. The price band, lot size and IPO dates are not announced yet.
Hero FinCorp is a non-banking finance company that lends to retail customers, small businesses and corporates, with assets under management of Rs 58,162.54 crore at 30 September 2025. Its IPO is a Rs 3,358.14 crore offer, of which Rs 1,790.00 crore is fresh issue.
Researched & reviewed by
Abhishek Vohera,
Founder, IPO Guru
Last updated
Figures sourced from the DRHP filed with SEBI
Where the Hero FinCorp IPO stands
From draft to listing. Today is 7 October 2026.
- DRHP filed 28 Nov 2025
- SEBI observations 22 May 2025
- RHP & price band TBA
- Bidding TBA
- Listing TBA
| DRHP filed with SEBI | 28 Nov 2025 |
|---|---|
| SEBI status | SEBI approval lapsed · 22 May 2025 |
| Approval valid until | 22 May 2026 |
| RHP, price band & dates | Not announced |
Hero FinCorp IPO details
The offer as the DRHP describes it. Terms can change in the RHP.
| Issue type | Fresh issue and offer for sale |
|---|---|
| Fresh issue | Up to ₹1,790 Cr |
| Offer for sale | Up to ₹1,568.13 Cr |
| Total issue size | ₹3,358.14 Cr |
| Pre-IPO placement | Up to ₹310 Cr (reduces the fresh issue) |
| Face value | ₹10 per share |
| Shareholder quota | Reservation for eligible HMCL shareholders |
| Proposed listing | BSE, NSE |
| Price band | Not announced (comes with the RHP) |
| Lot size | Not announced |
| IPO dates | Not announced |
| Book running lead managers | JM Financial Limited, Axis Capital Limited, BofA Securities India Limited, HDFC Bank Limited, HSBC Securities and Capital Markets (India) Private Limited, ICICI Securities Limited, Jefferies India Private Limited, SBI Capital Markets Limited |
| Registrar | MUFG Intime India Private Limited |
Who is selling in the offer for sale
| Selling shareholder | Type | Offering | Avg. cost / share |
|---|---|---|---|
| AHVF II Holdings Singapore II Pte. Ltd. | Investor | Up to Rs 1,000 crore | Not stated |
| Apis Growth II (Hibiscus) Pte. Ltd. | Investor | Up to Rs 250 crore | Not stated |
| Link Investment Trust (through Vikas Srivastava) | Investor | Up to Rs 4.77 crore | Not stated |
| Otter Limited | Investor | Up to Rs 313.36 crore | Not stated |
The addendum gives a weighted average cost of Rs 1,400.27 per share for primary issuances in the last three years and Nil for secondary transactions; it does not give a cost for each selling shareholder.
Strengths & risks
The case for and against, from the DRHP's own numbers and risk factors.
Strengths · 7
- 01AUM grew from Rs 41,750.89 crore at 31 March 2023 to Rs 57,720.53 crore at 31 March 2025, a rise of 11.38% in the last year.
- 02Total income rose from Rs 6,447.55 crore in FY2023 to Rs 9,903.33 crore in FY2025.
- 03Capital adequacy ratio was 17.41% at 30 September 2025, with Tier I capital at 14.49%.
- 04The company is rated AA+ for its borrowings, the same rating it had in each of the last three financial years.
- 05Digital reach is wide: 88.46% of collections were non-cash and 69.44% of customer queries were handled digitally in the six months to 30 September 2025.
- 06Net interest margin was 8.86% in FY2025 and yield on advances was 15.98%.
- 07Provision coverage on stage 3 loans improved from 48.74% at 31 March 2023 to 55.80% at 31 March 2025.
Risks · 10
- 01Profit fell sharply: restated profit after tax was Rs 109.95 crore in FY2025 against Rs 637.05 crore in FY2024, and the company made a loss of Rs 130.76 crore in the six months to 30 September 2025.
- 02Credit cost is high: impairment on financial instruments was Rs 2,884.09 crore in FY2025 against Rs 1,722.39 crore in FY2024.
- 03Gross NPA ratio was 5.05% at 31 March 2025 against 4.02% a year earlier, and stage 3 loans were Rs 2,827.97 crore.
- 04The balance sheet is highly leveraged: debt to equity was 9.20 times at 31 March 2025 and borrowings were Rs 52,954.65 crore.
- 05Return on equity fell to 1.91% in FY2025 from 11.57% in FY2024.
- 06Disbursements fell 4.16% in FY2025 and 9.10% in the six months to 30 September 2025, and AUM grew only 4.53% in that period.
- 07Of the Rs 3,358.14 crore offer, Rs 1,568.13 crore is an offer for sale. That money goes to four selling shareholders, not to the company.
- 08Certain promoters face regulatory proceedings. An Enforcement Directorate matter concerning Dr. Pawan Munjal is under a court stay, and the company has received a show cause notice from the ED over collateral given by a borrower.
- 09The company has 9,119 shareholders while unlisted, and it flags the risk of a regulatory inquiry into how its shareholder base built up.
- 10The company sold 2,214,277 shares at Rs 1,400 each in a pre-IPO placement worth Rs 310.00 crore, which reduced the fresh issue.
Hero FinCorp financials
Restated figures in ₹ crore, as reported in the DRHP.
| ₹ crore | 30 Sep 2025 (6 months) | 31 Mar 2025 | 31 Mar 2024 | 31 Mar 2023 |
|---|---|---|---|---|
| Revenue from Operations | 4880.08 | 9832.73 | 8290.90 | 6401.59 |
| Total Income | 4883.75 | 9903.33 | 8359.73 | 6447.55 |
| Profit After Tax | -130.76 | 109.95 | 637.05 | 479.95 |
| Net Worth | 5918.57 | 5753.15 | 5765.97 | 5243.44 |
| Total Borrowing | 50579.98 | 52954.65 | 46169.48 | 36627.86 |
| Total Assets | 57864.80 | 60042.39 | 53204.66 | 43451.23 |
Key ratios (FY25)
P/E and market capitalisation need the price band and are added when the RHP is out.
Where the IPO money goes
₹1,790 crore of the fresh issue is earmarked to named objects; offer for sale proceeds go to the selling shareholders, not the company.
About Hero FinCorp
The company lends in three product verticals: retail finance, MSME finance and corporate finance. Retail loans were 62.02% of assets under management (AUM) at 30 September 2025, MSME loans 24.53% and corporate loans 10.00%. The rest is lending to CROMS, a repo order matching system. AUM stood at Rs 58,162.54 crore at 30 September 2025, against Rs 57,720.53 crore at 31 March 2025.
In FY2025 the company disbursed Rs 33,029.72 crore of loans, 4.16% lower than in FY2024. In the six months to 30 September 2025 disbursements were Rs 14,360.06 crore, 9.10% lower than a year earlier. It had 13.21 million customers in its franchise at 30 September 2025, 123 branches and 4,286 on-roll employees. 88.46% of its collections in that period came through non-cash modes.
The company funds itself mostly through borrowings. Total borrowings were Rs 50,579.98 crore at 30 September 2025, of which term loans were 57.22% of adjusted borrowings and external commercial borrowings 15.73%. Its long-term credit rating is AA+. It has 9,119 shareholders even though it is unlisted.
This page is based on an addendum to the draft red herring prospectus, filed in November 2025. The addendum updates the financials to 30 September 2025. It does not carry the business, objects or shareholding sections of the original draft, so those are not covered here.
The industry
The addendum does not carry the industry report. For context, it compares the company with six listed lenders: Bajaj Finance, Cholamandalam Investment and Finance Company, Poonawalla Fincorp, Sundaram Finance, HDB Financial Services and Tata Capital. The listed peers trade at a price to earnings ratio of 26.60 to 37.73 times and a price to book ratio of 3.66 to 6.50 times, based on BSE closing prices on 12 November 2025.
Promoters & management
The addendum does not give the promoter and promoter group holding before the issue.
| Name | Role |
|---|---|
| Dr. Pawan Munjal | Chairman |
| Abhimanyu Munjal | Managing Director and CEO |
| Sajin Mangalathu | Chief Financial Officer |
The bankers & the filings
Who is running the issue, and the SEBI documents this page is built from.
Lead Manager Track Record
How the book-running lead managers on this issue have priced their past IPOs, measured on listing day.
JM Financial Ltd.
33 issues handledBest listing: Tempsens Instruments (India) (+111.3%). Weakest: Turtlemint Fintech Solutions (-10.4%).
HSBC Securities & Capital Markets (India) Pvt. Ltd.
5 issues handledBest listing: Tenneco Clean Air India (+27.2%). Weakest: Canara HSBC Life Insurance Co (0.0%).
SBI Capital Markets Ltd.
15 issues handledBest listing: Indo-MIM (+44.3%). Weakest: Central Mine Planning & Design Institute (-7.0%).
Axis Capital
29 issues handledBest listing: Moneyview (+61.8%). Weakest: Clean Max Enviro Energy Solutions (-8.8%).
ICICI Securities
24 issues handledBest listing: Tempsens Instruments (India) (+111.3%). Weakest: Turtlemint Fintech Solutions (-10.4%).
Jefferies India Private Limited
9 issues handledBest listing: Dhoot Transmission (+37.8%). Weakest: Turtlemint Fintech Solutions (-10.4%).
Bofa Securities India Limited
5 issues handledBest listing: Moneyview (+61.8%). Weakest: SBI Funds Management (+6.8%).
Hdfc Bank Limited
4 issues handledListing gain compares the listing-day opening price with the issue price, using the IPOs on IPO Guru that this lead manager has taken to market. A strong record reflects how the banker has priced past issues — it is not a forecast for this one. See every issue they have handled on the lead managers page.
Hero FinCorp IPO: frequently asked
When will the Hero FinCorp IPO open?
The Hero FinCorp IPO dates are not announced yet. SEBI's observations have lapsed without a launch; the company would need to refile. The company announces the dates and price band after it files its red herring prospectus (RHP) with the Registrar of Companies, usually a week or two before bidding opens. This page switches to the full IPO page with dates, price band and lot size as soon as that happens.
What is the Hero FinCorp IPO price band?
The price band is not announced yet. It is set by the company and its lead managers and published with the RHP, a few days before the issue opens. The DRHP fixes only the face value of ₹10 per share.
How big is the Hero FinCorp IPO?
Hero FinCorp filed its draft red herring prospectus (DRHP) with SEBI on 28 Nov 2025 for an IPO of a fresh issue of up to ₹1,790 crore and an offer for sale of up to ₹1,568.13 crore. The DRHP puts the total at about ₹3,358.14 crore.
Has SEBI approved the Hero FinCorp IPO?
SEBI's observations have lapsed without a launch; the company would need to refile. SEBI observations are valid for 12 months; the IPO has to open within that window or the company must file again.
What is the Hero FinCorp IPO GMP?
There is no grey market premium to report before the price band is announced. IPO Guru starts tracking the Hero FinCorp IPO GMP once the RHP and price band are out.
What will Hero FinCorp do with the IPO money?
As per the DRHP: Fresh issue gross proceeds (the addendum does not list the objects; they are in the original draft) (₹1,790 crore).
Who are the lead managers of the Hero FinCorp IPO?
The book running lead managers are JM Financial Limited, Axis Capital Limited, BofA Securities India Limited, HDFC Bank Limited, HSBC Securities and Capital Markets (India) Private Limited, ICICI Securities Limited, Jefferies India Private Limited, SBI Capital Markets Limited. MUFG Intime India Private Limited is the registrar.
Is Hero FinCorp profitable?
Restated profit after tax was Rs 479.95 crore in FY2023, Rs 637.05 crore in FY2024 and Rs 109.95 crore in FY2025. It was a loss of Rs 130.76 crore in the six months to 30 September 2025.
Who owns Hero FinCorp?
The promoters include Hero MotoCorp Limited, Bahadur Chand Investments Private Limited, Hero Investcorp Private Limited and members of the Munjal family. The company has 9,119 shareholders as of 14 November 2025.
How big is Hero FinCorp's loan book?
Assets under management were Rs 58,162.54 crore at 30 September 2025. Retail loans were 62.02%, MSME loans 24.53% and corporate loans 10.00%.
Other companies in the IPO pipeline
Mainboard companies with drafts filed with SEBI, same bankers first.
Know the day the price band is out.
We track every mainboard draft from SEBI filing to listing. When Hero FinCorp files its RHP, this page becomes the full IPO page with dates, price band, lot size, GMP and subscription.
Not investment advice. Figures are from the company's draft offer document filed with SEBI and may change in the RHP.
