Hero Fincorp IPO GMP

July 22, 2025 Written By Mihir Gohel, Reviewed and Fact Checked by Harpal Parmar

The Hero Fincorp IPO is scheduled to open on July 24 (tentative), 2025, aiming to raise approximately ₹3,668 crore through a combination of fresh issue and offer for sale. Hero Fincorp is a well-established NBFC catering primarily to retail and MSME segments, with a strong presence in vehicle and personal loan financing. The company has witnessed steady revenue growth, reaching ₹9,832 crore in FY 2025, supported by an asset base of over ₹60,000 crore. With a reputable brand association and a diversified customer base exceeding 11 million, the Hero Fincorp IPO is positioned to capitalize on India’s expanding retail credit market projected to grow rapidly.

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Last updated on 24 Jul 2025 10.35

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Expert Opinions

The Hero Fincorp IPO is generating strong interest, supported by its backing from Hero MotoCorp and consistent growth in the retail and MSME lending segments. The company’s strengths lie in a diversified borrower base, strong brand association, and focused expansion across vehicle and personal loans, offering resilience amid market fluctuations. However, risks include exposure to asset quality pressures, competitive NBFC landscape, and economic cycles impacting credit demand.

The Hero Fincorp IPO’s FY 2024 valuation reflects a Return on Equity (ROE) of 11.57% and a Net Asset Value (NAV) of ₹452.92, indicating moderate profitability and solid net worth. From a long-term perspective, Hero Fincorp’s strong parentage, scalable business model, and growing asset base suggest potential for sustainable growth, making it attractive to investors with a multi-year investment horizon willing to navigate sectoral challenges.

Investor Considerations

The Hero Fincorp IPO gives investors access to one of India’s leading non-banking financial companies, with a diversified loan book and strong presence across vehicle, personal, and MSME financing. In FY 2025, Hero Fincorp recorded revenue of ₹9,832.7crore, but net profit dropped over 80% to ₹109.9crore due to higher provisioning and rising costs, despite an impressive EBITDA margin of 53.50%. The return on net worth (RoNW) stood at 11.05%, while the debt/equity ratio remains elevated at 8.01, indicating substantial leverage but also sector-typical growth funding. The sector outlook is positive, supported by the expanding retail credit market, regulatory efforts to bolster financial access, and a growing customer base for NBFCs.

Growth prospects hinge on rural and urban lending expansion, digital finance, and greater cross-segment penetration. However, investors must weigh risks from asset quality deterioration, rising NPAs, high leverage, regulatory tightening, and competition from banks and fintechs. While the Hero Fincorp IPO may attract those pursuing long-term compounding in a growing market, short-term investors should be mindful of earnings volatility and credit risks as the cycle normalizes.