Hero FinCorp gets SEBI approval to launch Rs 3,668-crore IPO

Hero FinCorp Gets SEBI Nod for Rs 3,668 Crore IPO.

Expert Analysis:

• IPO Approval and Size: Hero FinCorp received SEBI approval to raise Rs 3,668 crore via an IPO, with Rs 2,100 crore as fresh issue and Rs 1,568 crore as offer for sale.

• Use of Proceeds: The fresh issue proceeds will boost the company’s capital for onward lending.

• Loan Write-offs Increase: Loan write-offs surged 80% to Rs 2,180.9 crore in the first three quarters of FY25, up from Rs 1,214.7 crore last year.

• Loan Sale Details: The company sold over 2.95 lakh written-off loans worth Rs 1,874.73 crore for just Rs 49.85 crore.

• Assets Under Management: Assets under management stood at Rs 53,642 crore as of September 30, 2024.