Hero Fincorp Ltd IPO

Scaled non-banking financial company with a diversified product offering catering to the large and attractive retail and micro, small and medium enterprises customer segments.

Our Hero heritage.

Strong customer franchise acquired through a pan-India distribution network comprising in-house capabilities and partnerships.

Our customer centric approach with strong cross-sell potential.

We sourced 99.04%, 99.69% and 99.93% of our two-wheeler loans from our Promoter, Hero MotoCorp Limited's two-wheeler dealership in Fiscals 2024, 2023 and 2022, respectively. Any decline in demand for Hero two-wheelers may adversely affect us.

Stage 3 Loans amounted to 4.02%, 5.11% and 7.54% of Total Gross Loan as at March 31, 2024, 2023 and 2022, respectively. Non-payment or default by our customers and our inability to provide any adequate provisioning coverage for non-performing assets may adversely affect our business, results of operations, cash flows and financial condition.

Our Company's retail finance business depends on new-to-credit borrowers who constituted 26.55%, 34.06% and 46.33% of our total retail assets under management as at March 31, 2024, 2023 and 2022, respectively. We may not be able to properly assess the credit of new-to-credit borrowers, and loans extended to such new-to-credit borrowers may accordingly have a higher risk of non-performance or default.

Retail finance, comprising vehicle loans, personal loans and mortgage loans, and micro, small and medium enterprises finance constituted 85.88%, 83.14% and 79.02% of our assets under management as at March 31, 2024, 2023 and 2022, respectively. We are susceptible to any adverse developments that reduce demand for our loans and/or increase loan default rates amongst retail and micro, small and medium enterprises customers.