Home First Finance IPO is all set to hit Dalal street on 21 January 2021. The company aims for an issue size of ₹1200 Crore through this IPO.
Also read: IPO List 2021: a complete list of IPOs in 2021
Home First Finance Company India Ltd.
Home First Finance is an affordable housing finance company that targets first-time homebuyers in low and middle-income groups. The company primarily offers housing loans for the purchase or construction of homes, which comprised 91.5% of its Gross Loan Assets, as of 30 September 2019. Its Gross Loan Assets have grown at a CAGR of 69.8% between FY2017 and FY2019 and increased from INR8,473.16 million as of 31 March 2017 to INR31,133.76 million as of 30 September 2019.
As of the same date, 35.9% of its Gross Loan Assets were from customers who were new to credit. The average ticket size of its housing loans was INR1.02 million, with an average loan-to-value on Gross Loan Assets of 58.4%, as of 30 September 2019. The company serves salaried and self-employed customers. Salaried customers account for 72.6% of its Gross Loan Assets and self-employed customers account for 24.6% of Gross Loan Assets. It serviced 37,086 active loan accounts, as of 30 September 2019.
Apart from housing loans, the company offers loans against property, developer finance loans, and loans for the purchase of commercial property. Home First Finance operates a network of 65 branches covering over 60 districts in 11 states and a union territory in India, with a significant presence in urbanized regions in the states of Gujarat, Maharashtra, Karnataka, and Tamil Nadu.
Objective of the Issue
- To augment the company’s capital base to meet future capital requirements.
- To achieve share listing benefits on the exchange.
Competitive strength
- Strong penetration in the largest housing finance market.
- Experienced and qualified managerial team.
- Technology-driven affordable housing company.
- Diversified lead source channel.
Basic details about the company
| Full name | Home First Finance Company India Ltd |
| Sector | Finance |
| Industry | Finance-Housing |
| Company Website | www.homefirstindia.com |
Dates to remember
| IPO Open | 21 January 2021 |
| IPO Close | 25 January 2021 |
| Basis of Allotment | 29 January 2021 |
| Refunds date | 01 February 2021 |
| Credit to Demat Account | 02 February 2021 |
| Listing Date | 03 February 2021 |
IPO details
| Issue type | Book Built Issue IPO |
| IPO issue size | ₹1,200 Crore |
| Number of shares offered | 59,995,115 Shares |
| Face value | ₹2 per equity share |
| Price band | ₹517-₹518 per equity share |
| Retail portion | 35% |
| Lot size | 28 Nos |
| Minimum application | 1 lot – 28 shares |
| Maximum application | 13 lot – 364 shares |
| Minimum application amount | ₹14,504 |
| maximum application amount | ₹188,552 |
| Listing Exchange | BSE, NSE |
Financial summary
| Home First Finance’s financial performance (in INR crore) | ||||
| FY2018 | FY2019 | FY2020 | H1 FY2021 | |
| Revenue | 134.2 | 270.9 | 419.7 | 243.2 |
| Expenses | 110.0 | 205.7 | 312.4 | 172.8 |
| Net income | 16.0 | 45.1 | 79.1 | 52.8 |
| Net margin (%) | 11.9 | 16.6 | 18.8 | 21.7 |
Valuation of Home First Finance (as of FY2020)
| Earnings Per Share (EPS) | ₹10.53 |
| Price/Earnings (PE ratio) | 49.1 – 49.2 |
| Return on Net Worth (RONW) | 10.9% |
| Net Asset Value (NAV) | ₹126.06 per share (30 Sep 2020) |
Company Promoters
- True North Fund V LLP
- Aether (Mauritius) Limited
| Pre Issue Share Holding | 52.85% |
| Post Issue Share Holding | 33.70% |
Home First Finance IPO Lead Managers
- Axis Capital Limited
- Credit Suisse Securities (India) Private Limited
- ICICI Securities Limited
- Kotak Mahindra Capital Company Limited
Registrar of Home First Finance IPO
KFin Technologies Private Limited
Selenium Tower B, Plot 31-32,
Gachibowli, Nanakramguda,
Hyderabad – 500 032, Telangana
Phone: +91 40 6716 2222
Fax: +91 40 2343 1551
Email: einward.ris@kfintech.com
Website: www.kfintech.com
Company Contact Details
Home First Finance Company India Limited
511, Acme Plaza,
Andheri Kurla Road, Andheri East, Mumbai, Maharashtra 400 059
Phone: +91 22 6694 0386
Email: corporate@homefirstindia.com
Website: www.homefirstindia.com
Home First Finance IPO Subscription Status
| Category | Day 1 | D 2 | D 3 |
| QIB | 1.28x | 1.36x | 52.53x |
| HNI | 0.10x | 0.61x | 39.00x |
| RII | 1.28x | 3.40x | 6.59x |
| Total | 1.03x | 2.22x | 26.66x |
Home First Finance IPO Allotment Status
Home First Finance IPO allotment status will be available on KFin Technologies’ website.
Click on this link to get allotment status.
Final thoughts
Home First Finance IPO is going to hit Dalal street soon. applying for IPO is purely a personal choice. study well about the company and do subscribe if you are feeling good about the company. I hope this post gave you enough details to make a fundamental study of the company. learn well and make a wise decision
Happy Investing
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