Home First Finance Company gets SEBI approval to float IPO

Home First Finance Company gets SEBI approval to float IPO

Affordable Housing Finance focused Mortgage Financier, Home First Finance Company (HFFC), has received market regulator Securities and Exchange Board of India’s (SEBI) nod to raise Rs. 1500 crore through the Initial Public Offering (IPO) route. The company had filed DRHP with SEBI on November 28, 2019.

The IPO consists of fresh issue aggregating up to Rs 400 crore and an offer for sale of up to Rs 1100 crore by the selling shareholders. The equity shares, of face value Rs 2 each, will be listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange) BSE.

True North Fund V LLP, Aether (Mauritius) Limited, Bessemer India Capital Holdings II Ltd, P S Jayakumar, Manoj Vishwanathan and Bhaskar Chaudhry are the promoter and investor selling shareholders

Further, the DRHP states that the company may consider a pre-IPO placement of up to Rs 160 crore in consultation with the Book Running Lead Managers (BRLMs). If the pre-IPO placement is undertaken, the amount will be reduced from the fresh issue.

The company intends to utilize the net proceeds towards augmenting its capital base to meet its future capital requirements, arising out of the growth of its business and assets and to receive the benefits of listing of the equity shares on the stock exchanges.

Between FY17-19, Homefirst’s gross loan assets grew at a 69.8% CAGR from Rs. 8473.16 mn to Rs. 31,133.76 mn as of Sept 30, 2019. Salaried Customers accounted for 72.6% and Self-employed customers accounted for 24.6% of Gross Loan Assets. The technology driven company leverages it’s seamlessly integrated differentiated framework to source leads, manage collections as well as manage its customer relationships.

Axis Capital Limited, Credit Suisse Securities (India) Private Limited, ICICI Securities Limited and Kotak Mahindra Capital Company Limited have been appointed as the Book Running Lead Managers (BRLMs) for the share sale.

HomeFirst has been a first port of call for over 30,000 customers, most of them falling under PMAY, across urbanized regions of Gujarat, Maharashtra, Karnataka and Tamil Nadu which accounts for 79 percent of the affordable housing market. The company’s loans have an average ticket size of Rs 10.4 lakh mainly accounting for purchase and construction of homes.