Home First Finance IPO Here’s everything you need to know

Home First Finance Co. will launch its initial public offering on January 21, after its previous attempt was delayed by the Covid-19 pandemic last year.

The company plans to raise Rs 1,153.71 crore through an inaugural offering of 2.22 crore shares. The price range for the offer has been set at Rs 517-518 apiece, according to the red diversion prospectus reviewed by BloombergQuint. The company will use the proceeds from the IPO to increase its capital to meet future capital needs.

The IPO includes a new issue of 51.15 lakh shares aggregating Rs 265 crore and a sell offer of 1.71 crore shares aggregating Rs 888.72 crore.

The issue is managed by Axis Capital Ltd., Credit Suisse Securities (India) Pvt., ICICI Securities Ltd. and Kotak Mahindra Capital Co. The company, in its filings, said up to 50% of the net offering would be reserved for qualified individuals. institutional buyers, 35% for non-institutional buyers and the rest for retail investors.

The IPO comes at a time when retail investor participation in equity markets in India and globally has increased following pandemic-induced lockdowns.

In October 2020, the company raised Rs 79.04 crore at Rs 334,726 per share from an arm Warburg Pincus Orange Clove Investments BV and employees.

Business

Home First Finance is a non-bank lender and is classified as a housing financier.

Business plans

  • Home loans for salaried professionals.
  • Home loans for the self-employed.
  • Home construction loans.
  • Loan for extension and renovation of house.
  • Loan on property.
  • Ready for NRIs.
  • Home loans for seniors.
  • Home loan balance transfer.
  • Home loan recharge.
  • Loans at the store.
  • Loans for the purchase of commercial property.

Launched in August 2010, Home First Finance provides loans for the purchase of assets, among other operations. It is a technology-driven, low-cost housing finance company that also targets first-time homebuyers in low- and middle-income groups, according to the prospectus. Housing loans for the purchase or construction of homes constituted 92.1% of its gross loan assets, as of September 30, 2020.

The company operates 70 branches, spread across 60 districts in 11 states and one union territory in India. It has a diverse range of lead sourcing channels, including hosting loan camps and micro-marketing activities, and utilizing employee and customer referrals and walk-in customers. you in the branches.

The company is professionally managed and True North Fund V LLP and Aether (Mauritius) Ltd. Companies like Bessemer and Orange Clove Investments BV have acquired a stake in the company.

Selling shareholders

The selling shareholders include two promoter entities: True North and Aether.

Shareholding

After the IPO, the public will own 66.3% of the company. Developers True North and Aether will own 33.7%.

finance

Home First Finance posted a post-tax profit of Rs 53 crore in the six months to September 2020.

Competitive landscape

Its main competitors are public sector lenders, public banks, private lenders (including foreign banks), financial institutions and other NBFCs.

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