The financial services arm of Hero MotoCorp, Hero FinCorp unlisted stocks are available for purchase on Minance Private Market. It was incorporated in December 1991 as Hero Honda FinLease Limited.
Hero FinCorp is amongst India’s leading Non-Banking Financial companies and is primarily involved in the business of consumer finance and commercial lending. With its vision and mission to become a financier of choice and a one-stop destination for all financial issues, Hero FinCorp has opened more than 2000 retail financing touch-points across the Hero MotoCorp Network, with over 2000 partnerships with corporate clients.
With its growing network of auto loans, loans against property, bill discounting, and inventory funding, and the rising price of its unlisted stocks, Hero FinCorp showed impressive growth in its revenue from ₹1,332.69 crores in 2016-17 to ₹1,817.32 crores in 2017-18. It also started another business in 2016 by incorporating Hero Housing Finance Ltd, to expand in the home finance and housing loans domain. Hero MotoCorp has a huge market in Indian tier 2 and tier 3 cities
In September 2017, Hero FinCorp had raised ₹1,000 crores. In this round, ₹570 crores came in from private equity firm Chrys Capital, ₹132 crores from Credit Suisse Group, and ₹300 crores from Hero Group. This investment gave a collective stake of 79% to Hero Group in unlisted stocks’ entity Hero FinCorp, while giving 40.3% specifically under Hero MotoCorp.
Furthermore, to widen its reach in the housing finance area, Hero FinCorp made a bid to acquire Aadhar Housing Finance for ₹2,500-2,700 crores, in January 2019. It was a strategic move as Aadhar Housing Finance recorded a huge jump in its net profits of 52% for the previous financial year.
In the same year, the non-banking financial company made plans to acquire a 100% stake in Reliance General Insurance by giving away almost ₹6,000 crores to Reliance Capital. As of 2020, the acquisition is in progress and is a value enhancer for Hero FinCorp’s unlisted stocks.