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.
Home First Finance IPO Review & Ratings
|IPO Ratings & Review|
|Top Brokers Review||8.1/10|
Summary of Home First Finance Company IPO
They 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.
From FY 2016-17 to FY 2018-2019, as per the Restated Financial Statements
- Their Gross Loan Assets have grown at a CAGR of 69.8% between the financial year 2017 and the financial year 2019 and increased from Rs. 8,473.16 million as of March 31, 2017 to Rs. 31,133.76 million as of September 30, 2019.
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 Dates
The opening and the closing date of HFFC IPO is not known yet.
HFFC or Home First IPO Subscription
|Day / Date||QIB||NII||RII||Total Subscription|
|1st Day –|
|2nd Day –|
|3rd Day –|
|Shares Offered or Net Issue|
The shares subscribed by the public will be updated herein on a daily basis, once the IPO is open for subscription.
Home First Finance Company IPO (HFFC IPO) Allotment Status
Here, you can find the Allotment Status of this IPO.
|Basis of Allotment Finalization||NA|
|Credit of Shares to Demat Account||NA|
|Share Listing Date||NA|
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 not yet disclosed.
Home First Finance Company IPO Size
The initial public offer of up to [●] Equity Shares of face value of Rs. 2 each for cash at a price of Rs. [●] each (including a share premium of Rs. [●] per Equity Share), aggregating up to Rs. 15,000 million, comprising the Fresh Issue and the Offer for Sale.
Home First Finance Company or HFFC IPO & Share Offering
Fresh issue of up to [●] Equity Shares aggregating up to Rs. 4,000 million by the Company.
Offer for Sale of up to [●] Equity Shares aggregating up to Rs. 11,000 million comprising up to [●] Equity Shares aggregating up to Rs. 4,984 million by TN V LLP, up to [●] Equity Shares aggregating up to Rs. 3,322 million by Aether, up to [●] Equity Shares aggregating up to Rs. 1,764 million by Bessemer, up to [●] Equity Shares aggregating up to Rs. 560 million by P. S. Jayakumar, up to [●] Equity Shares aggregating up to Rs. 359 million by Manoj Viswanathan and up to [●] Equity Shares aggregating up to Rs. 11 million by Bhaskar Chaudhry.
Home First Finance Company India Ltd – 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: 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: 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 – 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)|
|Profit After Tax||367.41||114.56||452.04||159.96||66.77|
Earnings per Equity Share (in million)
From the above statements, one could find that the Home First Finance Company Ltd may perform well.
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
Interest in promotion of the Company
None of their Directors have any interests in the promotion or formation of their Company.
None of their Directors have any interest in any property acquired or proposed to be acquired of their Company or by their Company in the preceding three years.
Home First Finance Company Ltd IPO Offer Details or Issue Details
|Particulars||No. Of Equity Shares|
|Equity Shares Offered||
Up to [●] Equity Shares aggregating up to Rs. 15,000 million
|Fresh Issue||Up to [●]Equity Shares aggregating up to Rs. 4,000 million|
|Offer for Sale||Up to [●] Equity Shares aggregating up to Rs. 11,000 million by the Selling Shareholder|
|QIB Portion||Not more than [●] Equity Shares|
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|
|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|
|Not less than [●] Equity Shares|
|Equity Shares outstanding prior to the Issue||78,297,715 Equity Shares|
|Equity Shares outstanding after the Issue||[●] Equity Shares|
Home First Finance Company Ltd 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 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 EPS||Diluted EPS||RONW in %||NAV (Rs.)|
- Price to Earnings (P/E) ratio in relation to Price band of Rs. [●] to Rs. [●] per Equity Share
Competitive Peers of Home First Finance Company India Limited
Below are the top competitors:
|Sr. No.||Particulars||Face Value (in Rs.)||Basic EPS (In Rs.)||Diluted EPS (In Rs.)||P/E Ratio||RONW (%)||NAV (In Rs.)|
|1||Home First Finance Company Ltd Limited||2||7.82||7.65||N.A.||8.64||82.59|
|2||Aavas Financiers Limited||10||23.66||23.10||65.80||9.58||235.19|
Home First Finance Company IPO 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: [email protected]
Investor grievance E-mail:[email protected]
Contact Person: M Murali Krishna
SEBI Registration No.: INR000000221
- 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 Review||Company Reputation||Competitive Edge||Financial Statement||Popularity Index||Promoters Reputation|
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