The initial public offer (IPO) of Home First Finance Company India received bids for 1.62 crore shares as against 1.56 crore shares on offer on Thursday (21 January 2021), according to the stock exchange data at 17:30 IST. The issue was subscribed 0.73 times.
The issue opened for subscription on Thursday (21 January 2021) and it will close on Monday (25 January 2021). The price band for the IPO is set at Rs 517-518 per share. An investor can bid for minimum of 28 equity shares and in multiples thereof.
The IPO consists 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.
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