Let’s have a detailed review of the company and analytics of the Home First Finance IPO release date, HFFC IPO subscription offer price, Home First Finance Company IPO allotment, grey market price and other details like the company’s background, its financial positions, its promoters and other related things.

Face ValueRs 2
Price BandRs 517 – 518
Listing AtBSE, NSE
Min. Order Quantity1 Lot = 21 shares
Listing Date 3rs Feb 2021
Offer for Sale882.72 Cr.
Fresh Issue265 Cr.
IPO Size1153.72 Cr.
IPO Opening Date21st Jan 2021

Home First Finance IPO is listed at NA premium, check out the live share price by clicking on the below link.

 


Summary of Home First Finance Company IPO

Home First Finance Company IPOThey are a technology driven affordable housing finance company that targets first time home buyers in low and middle-income groups. They primarily offer customers housing loans for the purchase or construction of homes, which comprised 91.5% of their Gross Loan Assets, as of September 30, 2019.

Their Company was founded by Jaithirth Rao, P. S. Jayakumar and Manoj Viswanathan and they commenced their operations in August 2010.


Home First Finance Company / HFFC IPO Dates

The opening date is 21st Jan 2021 and the closing date is 25th Jan 2021 for HFFC IPO.


HFFC or Home First Finance IPO Subscription

Day / DateQIBNIIRIITotal Subscription
1st Day – 21 Jan1.28x0.13x1.29x1.04x
2nd Day – 22 Jan1.36x0.61x3.40x2.22x
3rd Day – 25 Jan52.53x39.00x6.59x26.66x
Shares Offered or Net Issue4,463,1273,347,3467,810,47515,620,948

The shares subscribed by the public will be updated herein on a daily basis.


Home First Finance Company IPO (HFFC IPO) Allotment Status

Here, you can find the Allotment Status of this IPO.

Basis of Allotment FinalizationJan 29, 2021
Refunds InitiationFeb 1, 2021
Credit of Shares to Demat AccountFeb 2, 2021
Share Listing DateFeb 3, 2021

Home First Finance Company or HFFC IPO Price Band / Cash Price

The face value of each share is Rs.2, and the cash price of HFFC IPO is Rs.517 to Rs.518. 


Home First Finance Company / HFFC IPO Size

The Home First Finance IPO Size is 1153.72 Cr.


Home First Finance Company or HFFC IPO & Share Offering

Fresh issue is aggregating up to Rs. 265 crore by the Company.

Offer for Sale is up to 882.72 crore by the company.


Home First Finance IPO – Live Performance

The listing date of this IPO is Feb 3rd 2021. You can check the live performance of the IPO here, only after it is listed on exchanges.


Home First Finance IPO Grey Market Premium

The Home First Finance Limited IPO Grey Market Premium price is Rs 145-150, the Kostak rate is Rs 550 and the Subject to Sauda is Rs 2500


Home First Finance Company IPO – Company Overview

They have and expect to continue to benefit from strong capital sponsorship and professional expertise of their marquee shareholders. In addition to assisting us with capital raising, their shareholders have assisted us in implementing strong corporate governance, which they believe have been critical to the growth of their operations.

HFFC – Network and Growth

As of September 30, 2019, they had a network of 65 branches covering over 60 districts in 11 states and a union territory in India, with a significant presence in urbanized regions in the states of Gujarat, Maharashtra, Karnataka and Tamil Nadu. They have increased the scale of their operations and grown their branches by adopting a strategy of contiguous expansion across regions and have strategically expanded to geographies where there is substantial demand for housing finance.

HFFC Technology Driven Business

They have leveraged technology in various facets of their business such as processing loan applications, managing customer experience and risk management. The Company developed a paperless process to onboard customers efficiently and their well-trained front-end teams appraise customers by conducting home and workplace visits and ensure minimal disruption to a customer’s daily routine.

They offer mobility solutions through dedicated mobile applications for their customers to enable quick and transparent loan related transactions. The company has an integrated customer relationship management and loan management system set up on a leading cloud based customer relationship platform providing us with a holistic view of all their customers. They utilize proprietary machine learning customer scoring models to assist us with their centralized credit underwriting process


Home First Finance Company – Financial Statements

A quick look into the past financial performance of the company to understand its performance of business and evaluate the growth prospectus:

Home First Finance Company IPO Financial Summary

On the basis of Standalone statement:

Amount (in INR & million) 
30-Sep-2030-Sep-1931-Mar-2031-Mar-1930-Mar-18
Total Assets37,221.9632,476.5434,796.1124,820.0513,649.42
Total Revenue2,431.931,937.734,196.572,709.211,342.37
Total Expense1,728.351,434.883,123.742,057.261,099.67
Profit After Tax529.53367.41792.49452.04159.96

Earnings per Equity Share (in million)

30-Sep-2030-Sep-1931-Mar-2031-Mar-1930-Mar-18
Basic 6.765.3310.777.823.10
Diluted
6.595.2110.537.653.02

From FY 2017-18 to FY 2019-2020, as per the Restated Financial Statements

  • Our 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.

The Promoters of this company are TRUE NORTH FUND V LLP AND AETHER (MAURITIUS) LIMITED. The lead manager to the issue is Axis Capital Limited, Credit Suisse Securities (India) Private Limited, ICICI Securities Limited, Kotak Mahindra Capital Company Limited and the Registrar to this issue is Karvy Fintech Private Limited.


Home First Finance Company IPO – Promoters

The Promoters of this company are:

  • TRUE NORTH FUND V LLP
  • AETHER (MAURITIUS) LIMITED

List of Related Parties (Key Managerial Personnel)

  • Manoj Viswanathan – Chief Executive Officer and Director
  • Nutan Gaba Patwari – Chief Financial Officer
  • Shreyans Bachhawat – Compliance officer & CS
  • Ajay Khetan – Chief Operating Officer and Head-Risk

Home First Finance Company: Competitive Strengths

  • 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
  • Well-Diversified and Cost-Effective Financing Profile
  • Experienced Management Team with Qualified Operational Personnel and Marquee Investors

Home First Finance Company IPO Offer Details or HFFC Issue Details

Particulars No. Of Equity Shares
 Equity Shares Offered 
Up to [●] Equity Shares aggregating up to Rs. 11,537.19 million
 Of which:
Fresh IssueUp to [●]Equity Shares aggregating up to Rs. 2,650 million
Offer for SaleUp to [●] Equity Shares aggregating up to Rs. 8,887.19 million by the Selling Shareholder
Of which 
QIB PortionNot more than [●] Equity Shares
Of which
Anchor Investor Portion
Up to [●] Equity Shares
Balance available for allocation to QIBs other than Anchor Investors (assuming Anchor Investor Portion is fully subscribed [●] Equity Shares
 Of which
Available for allocation to Mutual Funds only (5% of the Net QIB Portion
[●] Equity Shares
Balance of QIB Portion for all QIBs including Mutual Fund
[●] Equity Shares
Non- Institutional Portion
Not less than [●] Equity Shares
Retail Portion
Not less than [●] Equity Shares
 Equity Shares outstanding prior to the Issue82,270,961* Equity Shares
 Equity Shares outstanding after the Issue[●] Equity Shares

Home First Finance Company / HFFC IPO Issue Object

These are the IPO Issue Objects of the company:

  • Their Company proposes to utilize the Net Proceeds (as set out below) towards augmenting its capital base to meet their future capital requirements, arising out of the growth of their business and assets.
  • Their Company expects to receive the benefits of listing of the Equity Shares on the Stock Exchanges, including enhancement of the Company’s brand name and creation of a public market for our Equity Shares in India

Home First Finance Company: Business strategies

  • Leverage Technology to Grow Business and Drive Operational Efficiency
  • Expand Their Branch Network in Large Affordable Housing Markets
  • Grow the Productivity of Their Existing Branches
  • Diversify Sources of Borrowings to Optimize Borrowing Costs
  • Focus on Enhancing Their Risk Management Framework

Home First Finance Company IPO – Basis of the Offer Price

The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.

Qualitative factors are:

  • 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
  • Well-diversified and cost-effective financing profile
  • Experienced management team with qualified operational personnel and marquee investors

The relevant quantitative factors are:

Basic EPSDiluted EPSRONW in %NAV (Rs.)
31-Mar-183.103.025.1%
31-Mar-197.827.6510.7%
31-Mar-2010.7710.5310.9%126.06

Competitive Peers of Home First Finance Company India Limited

Below are the top competitors:

Sr. No. ParticularsFace Value  (in Rs.)Basic EPS (In Rs.)Diluted EPS (In Rs.)P/E RatioRONW (%) NAV (In Rs.)
1Home First Finance Company Ltd Limited210.7710.53N.A.10.9%119.24
2Aavas Financiers Limited1031.8531.4861.4112.7%267.86

Home First Finance Company IPO Lead Managers

Lead Managers
Axis Capital Limited

Credit Suisse Securities (India) Private Limited

ICICI Securities Limited

Kotak Mahindra Capital Company Limited

Home First Finance Company Ltd IPO Registrar to offer

Registrar to the Offer
Karvy Fintech Private Limited
(formerly known as KCPL Advisory Services Private Limited)
Karvy Selenium Tower B, Plot 31-32, Gachibowli
Financial District, Nanakramguda
Hyderabad 500 032 Telangana, India
Tel: +91 40 6716 2222
E-mail: hffcl.ipo@karvy.com
Investor grievance E-mail:einward.ris@karvy.com
Website: www.karisma.karvy.com
Contact Person: M Murali Krishna
SEBI Registration No.: INR000000221

HFFC IPO – Other Details

  • Statutory Auditor – Walker Chandiok & Co LLP
  • Peer Review Auditor – Walker Chandiok & Co LLP
  • Bankers to the Company – Axis Bank Limited, Federal Bank, Bajaj Finance Limited, The Karur Vyasa Bank, DCB Bank Limited, Central Bank of India, IDBI Bank, State Bank of India, HDFC Bank, CSB Bank, ICICI Bank Limited, Bank of Baroda, Union Bank of India, Bank of India


Home First Finance Company IPO Review by Top 10 Stock Brokers

Top Stock Brokers ReviewCompany ReputationCompetitive EdgeFinancial StatementPopularity IndexPromoters Reputation
Angel Broking7.5/107.4/108.5/108.1/107.1/10
Sharekhan7.2/107.1/108.6/108.1/107.2/10
Kotak Securities7.3/107.5/108.4/108.1/107.3/10
ICICI Direct7.3/107.3/108.7/108.1/107.1/10
IIFL7.5/107.2/108.8/108.0/107.1/10
Edelweiss7.5/107.4/108.4/108.3/107.2/10
Zerodha7.4/107.1/108.5/108.1/107.0/10
5Paisa7.1/107.1/108.4/108.1/107.1/10
Karvy7.4/107.3/108.2/108.1/107.1/10
Motilal Oswal7.1/107.1/108.6/108.3/107.2/10

 


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    Home First Finance Company IPO News

    News 1 – IPO ISSUE OPENS SOON [HFFC DRHP Download Prospectus]

    News 2 – HFFC IPO RHP DOWNLOAD


    Home First Finance IPO Review FAQs

    Ques – What is the Issue Size of Home First Finance IPO?

    Answer – The Company is making an initial public offer of NA equity shares. You can refer to the article for dept information on the offer for sale and fresh issue size. You will find all the respective stats here.

    Ques – What is the Price band?

    Answer – The price band for this particular IPO ranges between Rs.517 to Rs.518. As far as the face value of the share is of concern, it is Rs.2 per share.

    Ques – What is the Home First Finance IPO Open Date?

    Answer – The opening and closing date for the IPO have been updated. The IPO is set to open on Jan 21, 2021, while the closing date is set at Jan 25, 2021.

    Ques – What is the IPO Allotment Date?

    Answer – We also have the news regarding the respective allotment dates. Basis of Allotment finalization is on Jan 29, 2021, refund initiation is on Feb 1, 2021, credit of shares is on Feb 2, 2021 and share listing date is on Feb 3, 2021.

    Ques – What is the IPO Listing Date?

    Answer – Shares of this company shall be listed in the exchanges BSE as well as NSE. Date when the listing shall be done is Feb 3, 2021.

    Ques – Who is the Registrar of this IPO?

    Answer – One of the reputed registrars are managing the issue of this IPO, i.e. KFin Technologies Private Limited. Their website will help you regarding the further information you are on a lookout for.

    Ques – Who is the Promoter of this Company?

    Answer – Here is the information on promoter of this company – TRUE NORTH FUND V LLP AND AETHER (MAURITIUS) LIMITED. You can refer to the RHP for further information on the promoter. You will find the link to RHP in the article.

    Ques – What is GMP of Home First Finance IPO?

    Answer – We have obtained the GMP of this IPO and it is Rs 145-150. The further insights of Kostak rate and subject to sauda or SS are as well included in this report.

    Ques – Is Home First Finance IPO good for Investment?

    Answer – Company financials speak a great deal of a company, and Home First Finance has maintained a pretty good track record of efficient financial management. This is the cue that this company might be a better option for investment.

    Ques – What is the PAT of this Company?

    Answer – We have the information of company financials, and according to that, we have the figures from the last few years to provide. PAT for the financial year 2020 is 792.49, 2019 is 452.04, 2018 is 159.96. PAT from September 2020 is 529.53.


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