Hero FinCorp Unlisted shares Price I Planify

Hero FinCorp

PLACE ORDER

ROFR Required
No

Available in Depository:
NSDL
CDSL

Available for Investment:
Primary
Secondary

Home
Menu

Snapshot
Key Ratio
Peers
Financials
Ownership
News
Event

RATING

RECOMMENDATION

Strong Buy

Business Type

Emerging Leader

Discover
Market Place

RATING

RECOMMENDATION

Strong Sell

Business Type

Traditional Business

Hero FinCorp Unlisted Shares Essentials
Share

Discover and get info on Hero FinCorp Share Price before buying, selling and investing - Read our Research report on Hero FinCorp IPO For Information like - Management, Business Model, Financials, Growth, Valuations, Funding Rounds, News.

ISIN

INE957N01016

Face Value

₹10.00

Total Share

12,73,06,674

Total Income

₹1,205.47 Cr

Profit After Tax

₹51.62 Cr

EPS

₹4.23

P/E

212.77

P/B

2.44

Market Capitalisation

₹11,457.60 Cr

Enterprise Value

₹34,485.80 Cr

Book Value

₹369.03

Intrinsic Value

₹298.01

Dividend Yield

0.11 %

Earnings Yield

0.47 %

Sector

Financials

Sub-sector

Consumer Finance

Hero FinCorp Growth

About Hero FinCorp

Hero FinCorp (an associate company of Hero MotoCorp), is an Indian Non-Banking Financial Company (NBFC),disbursing a loan every 30 seconds. The company is currently engaged in consumer finance businesses and commercial lending. The company offers retail loans, such as two-wheeler, personal, used car, and loyalty loans; and corporate loans, including SME and commercial loans, loans against properties, unsecured business loans, medical equipment financing, working capital loans, inventory funding, and doctor’s loans, as well as emergency credit lines and loans to small, medium, and corporates, etc.
It also provides finance, leasing, bill discounting, and related financial services.
Hero FinCorp, is present at over 2000 retail touch-points across India, and has partnered with over 2000 satisfied corporate clients. Going forward, company is planning to continue expanding offerings and geographic presence, whilst offering class leading financial services to all sections of the society.
By April 2013, the company began giving two-wheelers loans to customers. In 2014, it ventured into loans against property, loans for small and medium enterprises and commercial loans.
The company was launched in Dec,91 as Hero Honda Finlease Ltd by extending working capital loans and medium-term finance to component suppliers and dealers of parent firm Hero MotoCorp and has registered office in New Delhi.
In 2011, as Hero Honda Motors was restructured, the company was renamed Hero FinCorp and acquired its present form.

Hero FinCorp IPO Details

As of 2021 there is no information regarding company's IPO

Hero FinCorp Funding

Funded By	Funding Amount	Date of Investment	Fund Name
Chrys Capital	₹ 291 Cr	24 May 2020	Growth
Chrys Capial	₹ 570 Cr	15 Sep 2016	Private equity round
Credit Suisse	₹ 132 Cr	14 Sep 2016	Private Equity Round
Hero Group	₹ 300 Cr	14 Sep 2016	Private Equity Round

Hero FinCorp Subsidiaries

Hero Fincorp has one wholly-owned subsidiary company:

Hero Housing Finance Limited (“HHFL”). 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.

Hero FinCorp Business Model

The company is engaged in the business of finance and investments as a NBFC without accepting public deposits for which the certificate of registration has been obtained from the Department of Non- Banking Supervision, RBI.

The company is currently engaged in consumer finance, businesses and commercial lending. Consumer finance includes financing Hero MotoCorp two wheeler, loyalty customer loans and providing loans against property. On the commercial lending side it provides Indian corporates with a wide portfolio of financing products which include working capital loans, machine loans among others. It is a captive finance company of Hero MotoCorp Ltd.

Hero FinCorp Revenue Segmentation

Interest Income
Dividend income

Lease rental income
Other financial charges

Other Income

Hero FinCorp Product & Services

Two Wheeler Loans
Loyalty Customer Personal Loans
Used Car Finance
Loan Against Property
SME & Commercial Loans
SimplyCash - Instant Loan App

Hero FinCorp Assets

Assets owned by HeroFincorp as of 31st March'21:

Company owns Building of worth Rs.3.58 Cr.

Company owns Plant and equipment of Rs.0.66 Cr.

Company possess Furniture and fixtures of worth 2.7 Cr.

Company owns Vehicles of Rs.19.68 Cr.

Company owns Data processing equipment of Rs.16.96 Cr.

Company possess Office equipment of worth Rs.2.36 Cr.

Assets given by company on Operating lease:

Vehicles worth Rs.7.11 Cr.

Hero FinCorp Industry Overview

Industry Statistics

Non-Banking Financial Company(NBFC) sector plays an important role in financial inclusion by meeting credit needs of retail and MSME sector by providing consumer credit, including automobile finance etc. It provides efficient credit distribution reach to untapped and under-penetrated regions and customer class.
Between FY17-FY20, the NBFC sector has shown upward growth in terms of asset size from approx Rs.22 lakh crore in FY17 to Rs.35 lakh crore with year-on-year(Y-o-Y) growth of 11% in FY20 its largest asset size in four years. In absolute terms, the asset size of the NBFC sector, as of March 31, 2020, is Rs.51.47 lakh crore. The major reason for this growth is increasing in demand of updated vehicals and per capita income.
The credit delivery of NBFC sector constituted 11.6 % of GDP in FY20. Credit growth of the NBFC sector was close to 3 % in June 2020. Further, the credit growth contracted in September 2020 with a Y-o-Y growth of -6.6 %.
The biggest challenge for the industry is the rise in non-performing assets (NPAs) that impacts the overall asset quality. Asset quality of NBFCs has improved moderately with GNPA ratio at 6.4% at the end of March 2021 as against 6.8% at end of March 2020. The Net NPA ratio decreased in FY2021 and was 2.7% compared to 3.4% for FY2020 and 3.3% in FY2019.
NBFCs take enormous exposure to vehicle financing. Around 85% of the total vehicle financing exposure of NBFCs is from commercial vehicles (CVs) and passenger car/utility Vehicles (UVs) financing. NBFCs Credit deployed to Auto Loans was 8.73% of the NBFCs Non-food credit deployed in FY19 which improved to 10.13% in FY20 as a result of ease of availability of finance and reduction in lending rates.
In FY21 loan growth in the financial industry was weaker due to Covid19 and the lockdown the followed resulting in enhanced competition in the vehicle industry.
Major players in auto financing market is M&M financial services and Poonawala Fincorp , where Hero Fincorp carry a a small % of market, that too in unsecured lending which is highly risky.

Future Prospects

The Indian auto industry is expected to record strong growth in 2021-22, post recovering from the effects of the Covid-19 pandemic. India is expected to be the world’s third-largest automotive market in terms of volume by 2026.

India Ratings and Research (Ind-Ra) has changed the outlook for retail non-banking financial companies (NBFCs) and housing finance companies (HFCs) to ‘improving’ from ‘stable’ for the second half of 2021-22. NBFCs with a diversified asset mix and non-overlapping customer segments could be considered better placed, according to the agency. It expects NBFCs to maintain growth in the range of 9-10% and HFCs at 10 per cent in the current financial year.

The Commercial Vehicle industry is likely to rebound and show recovery after witnessing two consecutive years of double-digit de-growth. Demand for Commercial Vehicles, is also likely to benefit from various government initiatives to help revive the economy. Domestic Passenger Vehicles are expected to have nominal growth in coming months of FY22 as it is highly impacted by the ongoing semi-conductors shortage, a critical component used in PV manufacturing.

The Indian age demography has two-thirds of our population below 35 years of age, Share of population in the age group 0-14 is 26.16%. Share of working age population (15-65 years) is 67.27%, which indicates a very positive future outlook for Indian Auto financing Industry. As this generation is bending towards new updated versions of vehicles, are ready to spend a lot on the easy o using them.

As updated vehicles with greener fuels are coming up, this may induce the demand in auto sector and is supposed to bring demand for auto financing industry too.

Government Initiatives

The government and the RBI rolled out a host of measures In FY20 in order to restrict the impact of the pandemic, provide relief and help the economy regain its footing.
The RBI, in March 2020, offered relief to borrowers by announcing a moratorium on EMIs of all term loans for a period of six months ending 31 August 2020. The moratorium was available on all loans including home loans, personal loans, and credit card dues, among others. The RBI also stated that using the moratorium option may not result in any impact on the credit scores of borrowers or cause any credit downgrade.
The RBI opened a window up 30 September 2021 under the Resolution Framework 2.0 allowing lending individuals to implement resolution plans related to their exposures to individuals and small businesses including MSMEs with aggregate exposure up to Rs.50 crore while classifying the same as 'Standard'. The objective of this move was to alleviate the potential stress to individual borrowers and small businesses due to the pandemic.
The Government extended the scope of the Emergency Credit Line Guarantee Scheme (ECLGS) on 31 March 2021 by introducing the ECLGS 3.0 to meet the credit needs of companies belonging to the hospitality, travel, tourism, leisure and sporting industries. Following this, the Government announced the ECLGS 4.0 to cover the credit needs of hospitals to set up oxygen generation plants.
RBI lends to banks in four tranches of Rs 25,000 Cr each. In total Rs 1 lakh Cr in TLTRO. The first tranche was available on March 27, 2020, and the last tranche of Rs 25,000 Cr was up for bidding on April 17, 2020. Once the banks bid for an amount, they will get it at the repo rate (currently 4.4%, but the interest rate will change for subsequent periods as the repo changes) for a tenure of three years.
To address the issue of asset liability mismatch of NBFCs, the Reserve Bank introduced the liquidity coverage ratio (LCR) requirement for all deposit-taking NBFCs and non-deposit taking NBFCs with an asset size of 5,000 crore and above.

Hero FinCorp Awards & Achievements

• Hero FinCorp Limited was certified as a Great Place to Work for the fourth time in a row.

• Hero FinCorp is amongst Top 30 Best Workplaces in BFSI 2020 for the third year in a row.

Hero FinCorp Strengths

Hero Fincorp has a strong brand name and is backed by Hero motors. It receives operational, financial, and managerial support from Hero MotoCorp Ltd(HMCL), its largest shareholder.
It has PAN India presence of network.
The company has a well-defined and scalable organizational structure based on product, territory and process knowledge.
Experienced and stable senior management team, who has strong relationships with public, private as well as foreign banks, institutions and investors.
The company has 6 million plus happy customers.
The company's digital vertical has improved the process for instant Personal Loan product – ‘SimplyCash’ which has led to 7.2 lakh app installation with 13K loan disbursals accounting to Rs.134 Cr.

Hero FinCorp Shortcomings

Hero Fincorp's business and growth is directly linked with the GDP growth of the country and as till now country is affected by covid the impact is ongoing on company as well.
As during April, Non-bank lenders and housing finance companies catering to the self-employed were looking at fresh slippages, with initial estimates suggesting a rise in the portfolio at risk, a fall in loan pool sales and tepid loan collections. Cheque-bounce rates picked up, pointing to stress in the unsecured segment. The risk is still prevailing in the market, which may affect the company as well.
Hero MotoCorp Ltd.(HMCL) and its associates accounted for nearly 52% of total business sourced within the HMCL ecosystem. Which is not a good sign for company's individual growth. Though the company may remain significantly dependent on HMCL and its associates, an improvement in scale of operations and foray into new businesses should help the company diversify its revenue profile.
CRISIL's analysis of Hero Fincorp's asset liability maturity profile as of March 2020 shows cumulative positive mismatch (cumulative inflows over cumulative outflows) in the up to 1 year buckets.
As per CRISIL, HFCL continues to tap debt capital market for fresh issuances and raised funding via bank borrowings, which can make the company more risky for investors.
Hero Fincorp mainly deals in unsecured loans which brings huge risk for the company. As the company is backed by Hero MotoCorp, major vehicle financing for customers is done by them. Due to this company had to face many defaults after covid pandemic as well. They are trying to move in secured market as well but currently a big portion of their loan book consist of unsecured loans.

Hero FinCorp Opportunities

The company deals in largely untapped market, both rural and urban and also geographically. There are still many locations in India itself where company can expand their services.
In coming years more and more customers are likely to go for technology upgradation, in terms of automatic or greener vehicles, this may create opportunity for the company to finance them.
The company can work on onboarding customers on technology platform and effectively use them for extending credit on their working capital needs and for also enhancing digital footprint on recovery.
In May 2020, RBI cut interest rates to its lowest in 20 years to 4% which has compelled banks to cut rates for FDs. Hence, RBI giving money to boost Banks and banks would lend to NBFC at much less rate this may result in higher NIMs for NBFCs.

Hero FinCorp Threats

Hero Fincorp is likely to get impacted by all risks associated with pandemic, as higher the risk, higher would be the default rate with lower consumers and corporates using financing services.
The company may also get impacted by inadequate availability of bank finance and upsurge in borrowing cost.
The company faces huge competition from captive finance companies, small finance banks.
Asset quality deterioration may wipe of entire profits as well as the net worth of the company.
Financial service firms are prime target of cybercrimes. Because of sensitive data entry they carry, they are more likely to be targets which can be a big threat for them.
In this industry customer retention rate is decreasing year on year. What matters to most customers is great personalization, more automated services and easier access to services. Now companies need to try harder to retain their customers.

Hero FinCorp Rating

RECOMMENDATION

Strong Sell

Hero FinCorp Detail Info

Industry Statistics

PUBLIC LIMITED

Registered In

India

last Updated

17/12/2021

Registered Date

17/12/1991

Planify Ticker

HFC

Reg Office: 09, Basant Lok, Vasant Vihar, New Delhi - 110057

Website: https://www.herofincorp.com/

Frequently Ask Questions

The Hero FinCorp has not expressed any intentions of an initial public offering as of now.

The face value of the Hero FinCorp is Rs.10

Hero FinCorp is underperforming and is not able to generate enough profits due to the pandemic, but as per the previous growth and recent quarterly results of the company, it may see growth in its profitability

Major shareholders of the Hero FinCorp are Hero MotoCorp, Bahadur Chand Investment Private Ltd, Otter Limited and Brijmohan Lall Om Parkash.

Dr. Pawan Munjal is the chairman of Hero FinCorp.

Hero Fincorp has a strong brand name and is backed by Hero motors. It has a PAN India presence. The Hero FinCorp has 6 million plus happy customers. The company’s digital vertical has improved the process for instant Personal Loan product –‘SimplyCash’ which has led to 7.2 lakh app installation with 13K loan disbursals accounting to Rs.134 Cr.

The minimum holding period after the company has been listed is 6 months.

The total profit of Hero FinCorp is Rs.51.62 Cr.

Please find below the procedure for buying stock_name_auto Unlisted Shares at Planify.

• 1. You confirm booking of stock_name_auto Unlisted Shares with us at a trading price.

• 2. You provide your client master report (ask the broker if not available) along with PAN Card and Cancelled Cheque in case you are not transferring funds from the bank account as mentioned in the CMR Copy. These are KYC documents required as per SEBI regulations.

• 3. We will provide the bank details.

• 4. You need to transfer funds in that account.

• 5. Payment has to be done in RTGS/NEFT/IMPS CHEQUE TRANSFER. No CASH DEPOSIT.

• 6. Payment has to be done from the same account in which shares are to be credited.

• 7. We will transfer the shares in 24 hours if funds are credited before 2 pm.

Important Note: Please note that the lock-in period for selling stock_name_auto Unlisted Shares is 6 months after listing. Hence you can’t sell stock_name_auto Unlisted Shares which you bought in Pre-IPO for 6 months after its listing. i.e. You can sell it only after 6 months calculated from the listing date.

Please find below the procedure for selling stock_name_auto Unlisted Shares at Planify.

• 1. We will confirm our buying price of stock_name_auto Unlisted Shares.

• 2. We will give you our client master report and you will transfer the stock_name_auto Unlisted Shares to our demat account.

• 3. We will ask for bank details of yours once the stock_name_auto Unlisted Shares are received in our demat account..

• 4. We will transfer the funds in your bank account within 24 hrs of receiving the stock_name_auto Unlisted Shares.

• 5. Payment will be made in RTGS / NEFT / CHEQUE TRANSFER/IMPS. No CASH DEPOSIT.

• 6. Payment will be given in the same account which is linked to demat account or you need to provide the cancelled cheque shows your name to verify. As per SEBI regulations, the transfer of funds in the third party account is not legal and our policy refrain us from doing so.

Note: The price at which we are buying the share is fixed for 3 days. If you cant sell your stock within 3 days, then the price of that day will be applicable when we receive shares in our demat.

Lock-in period of stock_name_auto Unlisted Shares depends upon category of investors.

• 1. Venture Capital Funds or Alternate Investment Fund of Category -I or II, or Foreign Venture Capital Investor - lock-in Period of 6 months from the date of acquisition of stock_name_auto Unlisted Shares.

• 2. Other Investors (include Retail, HNIs or Body Corporate) lock-in Period of 6 months from the date of listing of IPO of stock_name_auto Unlisted Shares.

This new SEBI rule was introduced in the month of August-2021, wherein the SEBI has reduced the lock-in period previously from 1 year to 6 months to encourage more and more funds to be invested in startups which are going to public or IPO in near future. Reduction of lock-in is seen as big step and after that many PMS funds are advising their clients to invest in Pre-IPO shares to get the benefit of early stage investment.

DIS - Delivery Instruction Slip is the way through which an investor can sell or transfer the stock_name_auto Unlisted Shares from his/her demat account to any other demat account. There are two Types of DIS Slip.

1. Offline-DIS - This is an offline mode of transfer of shares wherein the investors needs to fill DIS form and give it to their broker for transferring the shares. Following are the fields which are required to be filled.

• a. ISIN number of stock_name_auto Unlisted Shares.

• b. Name of stock_name_auto Unlisted Shares

• c. Quantity of stock_name_auto Unlisted Shares

• d. Cosideration Amount

• e. Target DP ID and Client ID

• f. Annexure

2. Online DIS - Some of the broker these days gives facility of transferring the stock_name_auto Unlisted Shares via online DIS. So, please check with your broker whether such facility is available or not. For example: Angel Broking proivdes the facility of Online-DIS from its platform. As an investor he/she simply needs to add a beneficiary into it and send the stock_name_auto Unlisted Shares by filling the details similar to Ofline-DIS.

In the last 4-5 years, the unlisted share market has become quite big and as a result of that, the ticket size has reduced from usual 5-10 Lac to 35-50k in today's scenario. So, via our Planify platform, if somebody wants to buy stock_name_auto Unlisted Shares then minimum investment would be 35-50k.

Yes, buying and selling of unlisted shares in India is 100% legal.

If you sell your shares within 2 years, then you will have to pay Short-term Capital gain on unlisted shares. Short-Term Capital Gain is added in your Income. So, as per individual tax slab you need to pay capital gain tax.

If you sell your shares after 2 years, then you will have to pay Long-term Capital gain on unlisted shares LTCG is 20% with indexation benefits.

Taxes will remain the same irrespective of listing of shares, if bought in unlisted market. Actually, to be eligible for taxes as per listed market, one has to pay STT on buying and selling of shares. But, if you buy in unlisted and sell in listed market, one pay STT only on selling so, taxes of listed market will not be applicable.

If you buy stock_name_auto Unlisted Shares from Planify then these shares can checked in two ways. However, before we tell you the process of checking of shares, it is intimated that as per SEBI regulations, the shares can be transferred in demat account only.

Check credit of stock_name_auto Unlisted Shares Instantly?

• 1.You can download the NSDL or CDSL application from google play-store and check. If you want to check whether your stock broker is registered with NSDL or CDSL then check the following procedure.

• By carefully examining the number format of Demat Account we can easily identify whether the stock broker is registered with CDSL or NSDL.

• Demat Account = DP ID + Client ID. (16 Characters )

• "DP ID is the unique identification of the Broker. Every broker gets a unique number from CDSL or NSDL.By carefully examining the number format of Demat Account we can easily identify whether the stock broker is registered with CDSL or NSDL.

• Client ID is the unique identification of the Client. Every client gets this unique number which represents his/her portfolio.

• In CDSL, all these characters are numbers (1234567891234567) first 8 digits are DP ID and next 8 digits are Client Id whereas in NSDL the first two characters are letters which are in accordance with the country that you are from (IN12345678912345), then 6 unique digits for Broker and next 8 digits are client ID.

• Example:

• CDSL = 12345678(DP ID) and 91234567(Client ID).

• NSDL = IN123456 (DP ID) and 78912345(Client ID).

• Check in brokers application?

• Credit of stock_name_auto Unlisted Shares can be checked in brokers application as well but it takes T+2 days to show the shares.

The stock_name_auto Unlisted Shares are credited in demat account same day of transferring funds in our company's bank account.

The price of stock_name_auto Unlisted Shares can be checked in two ways. First, you can join our telegram channel where on daily basis we share the latest prices of all the unlisted shares in the morning and secondly, you can register on Planify.live platform to see the historical graphs and prices of all the shares at one place.

If you see the thesis of investment in the unlisted shares then it is being done mainly to take the advantage of IPO market. And, if the IPO plans of company get delayed due to market conditions or any other reason then demand suddenly drops in the market. The unlisted market works mainly on demand and supply and if there is no IPO news then getting exit would be difficult.

"Planify is India's fastest and leading marketplace to buy and sell unlisted shares. In the last 3 years, we have already served more than 1 million users on the platform. The total transactions value done from the platform is already more than 100 Crores. The name of our Co-founders Mr. Umesh Paliwal and Dinesh Gupta publish regularly in leading newspapers like MoneyControl, Business-Standard, ET etc for their views on IPO and Unlisted market. In the last 3 years, Planify has made a good name for itself in the industry and gained a trust of their users. So, the new investors should not be worried about any kind of fraud that is mostly happens with unkown brokers in the market while doing investment with Planify."

We at Planify do the valuation based on 2 methods.

• 1. We check the last funding that is being done in the stock_name_auto Unlisted Shares to ascertain the benchmark valuation.

• 2. If there is no funding happened in the company, then we try to find a business similar to stock_name_auto Unlisted Shares in the listed space and do comparison method to ascertain the valuation.

As an investor in the unlisted space, we would always recommend that you must check all the risk parameter carefully before investing in the unlisted space.

We source shares either from the employees or initial investors looking to liquidate their stock_name_auto Unlisted Shares.

Pre-IPO shares means which are planning for an IPO in near future. So, all the shares which are traded on the platform are not Pre-IPO Shares. However, if the company's business is going good and then demand will always be there in the unlisted space, so even if the IPO does not come, the investors can easily liquidate their stock_name_auto Unlisted Shares in the unlisted market itself.

Rules and regulations of SEBI are applicable in the Unlisted space like lock-in period of 6 months, paying of Stamp Duty, and DP Charges for every transaction etc. However, to become an unlisted broker there is no such regulation by SEBI as of yet.

For tracking news and other information about stock_name_auto Unlisted Shares, one can visit our website wherein we post news and other information on daily basis and one can also join our telegram channel.

Fundamental & Comparative valuation models and the forces of demand and supply in the market for unlisted shares dictate the price. These prices are based on our estimates and transaction history of stock_name_auto Ltd unlisted share.

We can generally arrange lot sizes starting with an investment of INR 20,000. To confirm the lot sizes of stock_name_auto Ltd unlisted shares with us.

The financials of stock_name_auto Ltd which includes the P/L of stock_name_auto Ltd and the Balance Sheet of stock_name_auto Ltd is in the financials section.

The annual report of stock_name_auto Ltd is available in the annual report section.

Tags:
More

Investment Checklist

Management

Accounting Practice

Profitability

Solvency

Growth

Valuation

Investment Checklist

RATING

RATING

Hero FinCorp Unlisted Shares Essentials

Hero FinCorp Growth

About Hero FinCorp

Hero FinCorp IPO Details

Hero FinCorp Funding

Hero FinCorp Subsidiaries

Hero FinCorp Business Model

Hero FinCorp Revenue Segmentation

Hero FinCorp Product & Services

Hero FinCorp Assets

Hero FinCorp Industry Overview

Industry Statistics

Future Prospects

Government Initiatives

Hero FinCorp Awards & Achievements

Hero FinCorp Strengths

Hero FinCorp Shortcomings

Hero FinCorp Opportunities

Hero FinCorp Threats

Hero FinCorp Rating

Hero FinCorp Detail Info

Hero FinCorp Share Price

Investment Checklist