Housing finance company is looking to raise upto ~₹ 1,153.7 crores through capital markets.
Tech enabled housing finance company lend to low and middle income group consumers
Home First Finance Company India Limited (Home First Finance), Bengaluru based housing finance company established in 2010 is into lending of housing loans, loans for the purpose of purchasing commercial property, loan against property and construction finance. Company operates its housing finance business through its 70 branches spread across 60 districts operated in 11 states & UT's.
| IPO Opens | IPO Closes | Price Band (₹/Sh) | Listing Date |
|---|---|---|---|
| 21-Jan-2021 | 25-Jan-2021 | 517 to 518 | 3-Feb-2020 |
Primary focus of company is to lend to Affordable housingsegment amongst others.
Home first Finance was founded by Jaithirth Rao, P. S. Jayakumar and Manoj Viswanathan in 2010. Company is managed by professionals and Promoters are True North Fund V LLP and Aether (Mauritius) Limited. Further, Bessemer Venture Partners has invested in the Company in 2011. Warburg Pincus invests in the company in 2020, earlier in 2017 additional equity infusion was raised in Series C funding from True North Fund.
Company is an technology driven affordable housing finance company targeting first time home buyers in low and middle-income groups. Company primarily offer customers housing loans for the purchase or construction of homes, which comprised 91.5% of Gross Loan Assets, as of September 30, 2019. Our Gross Loan Assets have grown at a CAGR of 69.8% between the financial years 2017 and 2019 and increased from ₹ 8,473.16 million as of March 31, 2017 to ₹ 31,133.76 million as of September 30, 2019.
Company is an technology driven affordable housing finance company targeting first time home buyers in low and middle-income groups. Company primarily offer customers housing loans for the purchase or construction of homes, which comprised 91.5% of Gross Loan Assets, as of September 30, 2019. Our Gross Loan Assets have grown at a CAGR of 69.8% between the financial years 2017 and 2019 and increased from ₹ 8,473.16 million as of March 31, 2017 to ₹ 31,133.76 million as of September 30, 2019.
Promoters of Home First Finacne are True North Fund V LLP and Aether (Mauritius) Limited
True North Fund V LLP: , a limited liability partnership (“LLP”), was incorporated on December 20, 2016 under the Limited Liability Partnership Act, 2008, with LLP identification number AAI-0542. Its registered office is located at Rocklines House, Ground Floor, 9/2, Museum Road, Bangalore 560 001. TN V LLP is primarily engaged in the business of financial intermediation (other than insurance and pension funding) and is registered with SEBI as a Category II Alternative Investment Fund with registration number IN/AIF2/16-17/0303, as per the certificate of registration granted under the SEBI AIF Regulations
Aether (Mauritius) Limited: a company limited by shares, was incorporated on August 19, 2016 under the Companies Act, 2001 of the Republic of Mauritius, with corporate identification number 140975 C1/GBL. Its registered office is located at 201, 2nd Floor, Sterling Tower, 14 Poudriere Street, Port Louis, Mauritius. Aether holds a Category 1 Global Business License under the Financial Services Act 2007 of the Republic of Mauritius and is primarily engaged in the business of investing in Indian companies through the FDI route. Aether does not have investments in any entity other than our Company as on the date of this Draft Red Herring Prospectus.
About Industry
The Indian housing finance market experienced a healthy growth in housing loan outstanding of approximately 20% over Fiscals 2015 to 2019. CRISIL Research expects housing loans outstanding to grow to ₹ 28.4 trillion by Fiscal 2022, at 15% CAGR in the next three years. By Fiscal 2022, CRISIL Research expects outstanding credit to increase at approximately 13% CAGR to ₹ 12.4 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 first-time homebuyers and initiatives towards affordable housing such as PMAY. (Source: CRISIL Report)
Key Pointers
- Professionally managed company
- Promoters are are True North Fund V LLP and Aether.
- Tech driven housing finance company
- Primary focus to lend low and middle income group
- Network of 70 branches spread across 11 states
- ₹ 3,730 crores gross loan assets
Key Management
| Deepak Satwalekar | Chairman |
| Manoj Viswanathan | MD & CEO |
| Nutan Gaba Patwari | CFO |
| Ajay Khetan | Chief Business Officer |
| Gaurav Mohta | Chief Marketing Officer |
| Shreyans Bachhawat | CS & Compliance Officer |
Home First Finance IPO Snapshot
| Issue Open | 21-Jan-2021 |
| Issue Close | 25-Jan-2021 |
| Face Value | ₹ 2/- |
| Price Band | ₹ 517 to ₹ 518 (Including premium of ₹ 515 to ₹ 516 per share) |
| Discount | Nil |
| Bid Lot | 28 shares and in mutiples |
| Listing on | BSE and NSE |
| Mode of Payment | UPI / ASBA (Mandatory); Applications using third party UPI/ASBA Bank accounts are liable to rejected |
Home First Finance Issue & Subscribed Details
| Particulars | Issued | Subscribed |
|---|---|---|
| Issue Size | ₹ 1,153.7 Crores (Upper Band) | ₹ - Crores |
| QIB Portion | ~50% | 52.63 times |
| NII Portion (Application for lot size of 15 & above) | ~15% | 39.08 times |
| Retail Portion (Applications for lot size between 1 & upto 15) | ~35% | 6.60 times |
| Employees Portion | NA | NA |
| Total | 100% | 26.71 times |
Home First Finance IPO Indicative Dates
| Issue Open | 21-Jan-2021 |
| Issue Close | 25-Jan-2021 |
| Anchor Investor Bidding | One working day prior to Issue opening date of 21-Jan-2021 (around 20-Jan-2021) |
| Announcement of Allotment | 29-Jan-2021 |
| Initiation of Refunds | 1-Feb-2021 |
| Credit of Shares | 2-Feb-2021 |
| Listing (Commencement of trading on Stock Exchanges) | 3-Feb-2021 |
Lead Managers of Home First Finance IPO
List of Book Running and Lead/Co-Lead Manager/s
| Axis Capital Limited |
| Credit Suisse Securities (India) Private Limited |
| ICICI Securities Limited |
| Kotak Mahindra Capital Company Limited |
Registrar of Home First Finance IPO
| KFin Technologies Private Limited |
Valuation
Company is looking at the following valuation
| Issue Size | ₹ 1,153.7 Crores (Upper Band |
| Pre-Issue Promoter's Holding | *% |
| Post Issue Promoter's Holding | TBA% |
| Pre-Issue Shares | TBA Crores |
| Post Issue Shares | TBA Crores |
| Post Issue Market Cap (based on Price band) | ₹ TBA to ₹ TBA Crores |
Address of Home First Finance
| Name | Home First Finance Company India Limited |
| Incorporated | February 3, 2010 |
| Corporate Identity Number | U65990MH2010PLC240703 |
| Contact Person | Shreyans Bachhawat, Company Secretary and Compliance Officer |
| Registered and Corporate Office | 511, Acme Plaza, Andheri Kurla Road, Andheri East, Mumbai, Maharashtra 400 059, India; Telephone: +91 22 6694 0386 |
| Website | http://www.homefirstindia.com/ |
| corporate@homefirstindia.com |
Check Allotment Status of Home First Finance IPO
| Please check below or visit here to check allotment status of IPO |
Source: DRHP, RHP, Company, Company Website | Logo/Images published in the article may be copyright of respective companies.
Frequently Asked Questions (FAQ)
| Q. How to Apply for IPO ? A. IPO can be applied Online and Offline mode. Online: a) Via Net banking of Bank website b) Via Stock brokers portal Offline: a) Collect application forms from Brokers > Fill demat details & UPI > Submit to any broker across India. b) Download forms from NSE/BSE website > Fill demat details & UPI > Submit to any broker across India. |
| Q. How to register for BHIM UPI? UPI is made mandatory by SEBI to apply for IPO's. To educate investors National Payment Corporation of India (NPCI) has come out with the useful video. This video educates on how to download BHIM UPI app and its process to register. Source: NPCI |
| What is UPI based ASBA Process ? To educate people to apply for IPO's National Payment Corporation of India (NPCI) has come out with the useful video. This video educates consumers on how the IPO process works and how subscribing for IPOs via BHIM UPI helps reduce the time and effort one needs to take for the same. Source: NPCI |
| Q3? Ans Source: NPCI |
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