Home First Finance IPO ends with strong subscription

Published on Jan 27, 2021 11:41

The initial public offer (IPO) of Home First Finance Company India received bids for 41.64 crore shares as against 1.56 crore shares, according to the stock exchange data. The issue was subscribed 26.66 times.

The qualified institutional buyers (QIBs) category was subscribed 52.53 times. The non-institutional investors category was subscribed 39 times. The retail individual investors category was subscribed 6.59 times.

The issue opened for subscription on Thursday (21 January 2021) and closed on Monday (25 January 2021). The price band for the IPO was set at Rs 517-518 per share.

The IPO consisted of fresh issue of equity shares aggregating to Rs 265 crore and an offer of sale of equity shares aggregating up to Rs 888.71 crore (including anchor portion of 66.81 lakh equity shares).

The company proposes to utilize the net proceeds from the offer for augmenting equity capital base to meet future capital requirements arising out of growth in business. In addition, the company expects to achieve the benefits of listing of equity shares on the stock exchanges and enhancement of the company`s brand name and creation of a public market for equity shares in India.

Ahead of the IPO, the company on 20 January 2021 allotted 66.81 lakh shares to anchor investors at Rs 518 per share, aggregating to Rs 346.11 crore.

The company recorded net profit of Rs 52.95 crore and a total income of Rs 243.19 crore in the six months ended on 30 September 2020.

Home First Finance Company is a technology driven affordable housing finance company (HFC) focused on first-time home buyers in low and middle-income groups. It primarily offers housing loans for the purchase or construction of homes, which comprised 92.1% of its Gross Loan Assets end September 2020. The new to credit customers account for 32.8% of loan book.

The company also offers other types of loans comprising loans against property (5.1% of loans), developer finance loans (1.9%) and loans for purchase of commercial property (0.9%) together account for balance portion of loan book.