Mumbai-based affordable housing finance company Home First Finance Company (HFFC) has decided to open its maiden public offer for subscription on January 21 with a price band at Rs 517-518 per share.
The Rs 1,153.72-crore public issue comprises a fresh issue of Rs 265 crore and an offer for sale of Rs 888.72 crore by promoters and existing shareholders.
The offer for sale consists of Rs 435.61 crore worth of shares by promoter True North Fund V LLP, Rs 291.28 crore shares by promoter Aether (Mauritius), and Rs 120.46 crore by investor Bessemer India Capital Holdings II, Rs 28.43 crore by PS Jayakumar, and Rs 12.92 crore by Manoj Viswanathan, as per the information available in newspapers.
This will be the third IPO in 2021 after IRFC, which is at present open for subscription, and Indigo Paints, which will open on January 20.
HFFC has reduced its fresh issue size to Rs 265 crore from Rs 344.08 crore due to its pre-IPO placement. The company has undertaken a preferential allotment of over 22.40 lakh equity shares to Orange Clove Investments B.V., an affiliate of the global private equity funds managed by Warburg Pincus at a price of Rs 334.72 per share, for a consideration of Rs 75 crore, in October last year.
The company has also undertaken a preferential allotment of 1.22 lakh equity shares to its employees at a same price, for a consideration of Rs 4.08 crore in November last year.
In March last year, Home First Finance Company had received the approval from Sebi to launch its initial public offering.
The public issue will close on January 25. The bids can be made for a minimum of 28 equity shares an in multiples of 28 shares thereafter.
Founded in 2010, HFFC is a technology-driven, affordable housing finance company, providing home loans to customers from low and middle-income groups. Over the last 10 years, Home First has sanctioned home loans to more than 50,000 customers in 60 districts, across 11 states and 1 union territory.
As of September 2020, the company had an AUM of Rs 3,730 crore with a net worth of Rs 988 crore and gross non-performing assets of 0.74 percent.
HFFC reported a 44.1 percent year-on-year growth in profit at Rs 52.95 crore for the six-month period ended September 2020, on a revenue of Rs 88.2 crore which increased by 36.9 percent YoY. In the financial year 2019-20, profit rose by 75.3 percent to Rs 79.25 crore and revenue jumped 45.4 percent to Rs 151.27 crore compared to the previous year.
Gujarat state contributed the maximum at 39 percent to gross loan assets of the company, followed by Maharashtra (21 percent), Tamil Nadu (10.5 percent), Karnataka (9.3 percent), Rajasthan (5.1 percent) and Telangana (5.0 percent).
Earlier this month, global private equity firm Warburg Pincus raised its stake in Home First Finance Company by 5.03 percent to 30.62 percent.
Axis Capital, Credit Suisse Securities (India), ICICI Securities and Kotak Mahindra Capital Company are the book running lead managers to the issue.