Back to Blogs Book Value of Hero FinCorp Ltd. set to rise post Preferential Allotment
Sameeksha Puri | 11/03/2020
A special resolution was passed on 4th January, 2020 by the Board of Directors of Hero FinCorp as per the applicable sections of Companies Act, 2013 and sanctions of the RBI. The Board of Directors will issue, offer and allot 1.31 Crores equity shares of ₹ 10 each for cash at a price of ₹ 820 per share inclusive of premium of ₹ 810 per share to the Promoters of the NBFC.
Partly Paid Shares to be offered, issued and allotted to the Proposed Subscribers pursuant to the Proposed Preferential Allotment shall rank pari passu with the existing equity shares of the Company, in all respects, including dividend, and shall be subject to the provisions of the Memorandum of Association and the Articles of Association of the Company and such other terms as may be agreed among the Company and the Proposed Subscribers.
The preferential allotment will result in a total inflow of ₹ 1,075 Crores. The Net Worth will increase from ₹ 3,778.01 as on 30th September, 2019 to ₹ 4,381.06 Crores when the shares are partly paid and allotted, and will further increase to ₹ 4,853.01 Crores when the preferential shares become fully paid up.
The number of shares outstanding will increase to 12.73 Crores post the issuance of 1.31 Crores preferential allotment. Thus the Book value per share will increase by 15.23%, from ₹ 330.83 as on 30th September, 2019 to ₹ 381.21 post the preferential allotment and the shares being fully paid up.
Allotment Break-Up:
| Proposed Subscriber | Number of Partly Paid Shares to be subscribed |
| Hero MotoCorp Ltd | 53,99,319.00 |
| Hero InvestCorp Pvt Ltd | 1,46,342.00 |
| Bahadur Chand Investments Pvt Ltd | 26,82,927.00 |
| RK Munjal & Sons Trust | 7,90,394.00 |
| Pawan Munjal Family Trust | 7,90,394.00 |
| Survam Trust | 2,43,905.00 |
| Otter Ltd | 8,24,405.00 |
| Link Investment Trust | 12,554.00 |
| Credit Suisse (Singapore) Ltd | 1,70,732.00 |
| APIS Growth II (HISBISCUS) PTE Ltd | 20,48,781.00 |
| TOTAL | 1,31,09,753.00 |
The partly paid shares will be paid-up in the following two tranches:
| Face Value | Premium |
Total |
|
| Partly paid shares would be paid at application & allotment | 5.60 | 454.40 | 460.00 |
| Paid within 12 months of allotment | 4.40 | 355.60 | 360.00 |
Impact on the Book Value per share:
| Metrics | HY 2020 | Special Issue | Post Special Issue |
| Net Worth (in ₹ Crores) | 3,778.01 | 1,075.00 | 4,853.01 |
| No of shares (in Crores) | 11.42 | 1.31 | 12.73 |
| Book Value per share (in ₹) | 330.83 | 820.00 | 381.21 |