Hero FinCorp has received market regulator SEBI's approval to launch an initial public offering (IPO) to raise Rs 3,668 crore. The proposed IPO of the financial services arm of two-wheeler maker Hero MotoCorp will be a combination of fresh issue worth Rs 2,100 crore and an offer for sale worth Rs 1,568 crore.
The market regulator's approval comes months after the NBFC filed draft documents on July 31. According to the DRHP, AHVF II Holdings Singapore II Pte. Ltd, Apis Growth II (Hibiscus) Pte. Ltd, Link Investment Trust (through Vikas Srivastava) and Otter Ltd are the existing stakeholders who will take part in the OFS.
Proceeds from the fresh issue will be used to increase the company's future capital for onward lending, according to the company.
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Established in December 1991 as Hero Honda FinLease Ltd, the financial services arm of India's largest two-wheeler maker Hero MotoCorp is a diversified financial services company offering a range of financing solutions including two-wheeler financing, advances for buying homes in the affordable housing segment, loans for education, and lending to the small and medium enterprise sector.
The Abhimanyu Munjal-led NBFC saw 80 percent rise in loan write-offs in the first three quarters of FY25, which widened to Rs 2,180.9 crore from Rs 1,214.7 crore in the year-ago period, the company’s filings showed.
The company sold off more than 2.95 lakh written-off loans worth Rs 1,874.73 crore for just Rs 49.85 crore. Its assets under management stood at Rs 53,642 crore as on September 30, 2024.
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