Home First Finance Company India Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹518
Per ShareLot Size
28 Shares
Minimum Investment
₹14,504
Issue Size
₹1,153.719 Cr
Face Value
₹2
Per ShareIPO Type
Book Building
Retail Quota
35%
QIB Quota
50%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Home First Finance Company India Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
52.85%
Promoter Holding (Post-Issue)
33.66%
Issue Type
Book Building
ISIN
INE481N01025
About the Company
Home First Finance Company India Ltd is a technology driven affordable housing finance company that targets first time home buyers in low and middle-income groups. It primarily offer customers housing loans for the purchase or construction of homes, which comprised 92.1% of its Gross Loan Assets, as of September 30, 2020. Its Gross Loan Assets have grown at a CAGR of 63.4% between the financial year 2018 and the financial year 2020 and increased from Rs. 13,559.32 million as of March 31, 2018 to Rs. 37,300.12 million, as of September 30, 2020.
Industry Overview
The Indian housing finance market experienced a healthy growth in housing loan outstanding of approximately 16% over Fiscals 2015 to 2020. CRISIL Research expects total housing loan outstanding to grow at a CAGR of 5% to 6% in Fiscal 2021 and at 8% to 9% CAGR to Rs. 26.5 trillion over Fiscals 2020 and 2023. The market for affordable housing loans logged a CAGR of approximately 12% over Fiscals 2015 to 2020. By Fiscal 2023, CRISIL Research expects affordable housing outstanding credit to increase at approximately 9% to 10% CAGR to Rs. 11.9 trillion. Growth would be driven by improved supply and demand of affordable houses, Government impetus to the segment through various incentives given to developers and firsttime homebuyers and initiatives towards affordable housing such as PMAY.
Company History
Home First Finance Company India Ltd was incorporated as `Home First Finance Company India Private Limited' at Bengaluru, Karnataka as a private limited company under the Companies Act, 1956, pursuant to the certificate of incorporation dated February 3, 2010 issued by the Registrar of Companies, Karnataka at Bengaluru. Subsequently, it was converted to a public limited company and consequently the name of the Company was changed to `Home First Finance Company India Limited' and a fresh certificate of incorporation dated March 14, 2018 was issued by the Registrar of Companies, Maharashtra at Mumbai ("RoC").
Products & Services
- Company primarily offers customers housing loans for the purchase or construction of homes
Growth Strategy
- Leverage Technology to Grow Business and Drive Operational Efficiency
- Expanding the Branch Network in Large Affordable Housing Markets
- To Grow the Productivity of its Existing Branches
- Diversify Sources of Borrowings to Optimize Borrowing Costs
- Focus on Enhancing its Risk Management Framework
Customer Base
First time home buyers in low and middle-income groups
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a standalone basis, as reported for FY24 to FY26.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offer of 22,272,556* equity shares of face value of Rs. 2 each ("equity shares") of Home First Finance Company India Limited ("company") for cash at a price of Rs. 518 per equity share (including a share premium of Rs. 516 per equity share) ("offer price") aggregating to Rs. 1153.72 Crores comprising a fresh issuance of 5,115,830* equity shares aggregating to Rs. 265 Crores** by the company ("fresh issue") and an offer for sale of 17,156,726* equity shares aggregating to Rs. 888.72 Crores comprising 8,409,548* equity shares aggregating to Rs. 435.62 Crores by True North Fund V LLP ("tn v llp"), 5,623,222* equity shares aggregating to Rs. 291.28 Crores by aether (mauritius) limited ("aether" and together with tn v llp, the "promoter selling shareholders"), 2,325,501* equity shares aggregating to Rs. 120.46 Crores by Bessemer India Capital Holdings II Ltd. (the "investor selling shareholder"), 548,938* equity shares aggregating to Rs. 28.44 Crores by P. S. Jayakumar and 249,517* equity shares aggregating to Rs. 12.93 Crores by Manoj Viswanathan (P. S. Jayakumar and Manoj Viswanathan, the "individual selling shareholders", and together with the promoter selling shareholders and the investor selling shareholder, the "selling shareholders", and such equity shares offered by the selling shareholders, the "offered shares") ("offer for sale" and together with the fresh Issue, the "offer"). The offer shall constitute 25.49% of the post-offer paid-up equity share capital of the company. The face value of equity shares is Rs. 2 each. The offer price is 259 times the face value of the equity shares. * subject to finalisation of the basis of allotment. **The company has undertaken (i) a preferential allotment of 2,240,639 equity shares to Orange Clove Investments b.v. ("orange clove") for cash at a price of Rs. 334.726 per equity share aggregating to approximately Rs. 75 Crores pursuant to the resolution of the board dated october 15, 2020; and (ii) A preferential allotment of 122,000 equity shares to certain of its employees for cash at a price of Rs. 334.726 per equity share aggregating to Rs. 4.08 Crores pursuant to the resolution of the board dated november 30, 2020 (together, the "pre-ipo placement"). The size of the fresh issue of up to Rs. 344.08 Crores was reduced by Approximately Rs. 79.08 Crores pursuant to the pre-ipo placement, and accordingly, the fresh issue size was Rs. 265 Crores.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- Technology Driven Company with Scalable Operating Model
- Customer Centric Organizational Commitment
- Deep Penetration in the Largest Housing Finance Markets, with Diversified Sourcing Channels
- Centralized, Data Science Backed Underwriting Process
- Technology Driven Collections System
- The Coronavirus disease (COVID-19) has had an adverse effect on its business and operations and the extent to which it may continue to do so in the future, is uncertain and cannot be predicted.
- Any disruption in the sources of funding could have an adverse effect on the business, results of operations and financial condition.
- Company's inability to meet its obligations, including financial and other covenants under its debt financing arrangements could adversely affect its business, results of operations and financial condition.
- Company's Auditor's reports on financial statements for Financial Year 2018, Financial Year 2019 and Financial Year 2020 include certain matters required under the Companies (Auditors Report) Order, 2016 ("CARO"). Further, its Statutory Auditors have included certain emphasis of matters in their Restated Financial Information.
- The Company has had negative net cash flows in the past and may continue to have negative cash flows in the future