Warburg Pincus-backed Home First Finance Company to launch ₹1,153 crore IPO on January 21

Warburg Pincus-backed Home First Finance Company to launch ₹1,153 crore IPO on January 21
  • Home First Finance Company (HFFC) is set to launch its ₹1,153 crore initial public offering on January 21.
  • The IPO will remain open for subscription until January 25, making it the third IPO of 2021 after IRFC and Indigo Paints.
  • The company has set the price band at ₹517-₹518 per share.
Private equity funds Warburg Pincus (WP) backed housing finance company, Home First Finance Company (HFFC) is all set to launch its ₹1,153 crore initial public offering on January 21. The IPO will remain open for subscription until January 25, making it the third IPO of 2021 after IRFC and Indigo Paints.

The company has set the price band at ₹517-₹ 518 per share. An investor can place a minimum bid of 28 equity shares and in multiples of 28, thereafter.

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The Mumbai-based affordable housing finance company received capital markets regulator Sebi’s approval for an initial public offering in March last year, but the coronavirus pandemic led to the delay in its plans.

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The public issue consists of a fresh issue of ₹265 crore and an offer for sale of ₹888.72 crore by existing shareholders, who will be selling part of their stake.

Home First Finance Company opens on Thursday
ParticularsIssue details
Opens onJanuary 21
Closes onJanuary 25
Price band₹517-₹ 518 per share
Minimum bid 28 equity shares
Reservation for qualified institutional buyers50%
Reservation for non-institutional buyers15%
Reservation for retail investors35%

Once the IPO is concluded, the shares are likely to hit the bourses on February 3. The equity shares will be listed on both the exchanges — BSE and NSE. Axis Capital, Credit Suisse Securities, ICICI Securities and Kotak Mahindra Capital are the lead managers for its initial public offering (IPO).

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Private equity fund Warburg Pincus (WP) holds 30.62% stake in the company. The marquee investor increased its stake in the company by 5.03% just a week ago, ahead of the IPO.

Home First Finance Company IPO: All you need to know
  • Home First Finance Company is a technology-driven, affordable housing finance company, providing home loans to customers from low and middle-income groups.
  • The RHP indicated that the company’s gross loan assets have grown at a compound annual growth rate (CAGR) of 63.4% to ₹3730 crore, between the fiscal year 2018-2020.
  • According to CRISIL Research by FY23, the affordable housing outstanding credit will increase at approximately 9% to 10% CAGR to ₹1190000 crore.
  • The grey market premium suggests an upside of ₹90-100 for the price band set at ₹517-₹ 518 per share.
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