Home First Finance Company India Ltd, a technology driven affordable housing finance company catering to the lower and middle income group's housing finance needs, received bids of 41,42,65,488 shares against the offered 1,55,90,790 shares, as per the 5:00 pm data available on the bourses. The portion reserved for retail investors was subscribed 6.60 times. Qualified Institutional Buyer and Non-Institutional Investor category was subscribed 52.63 and 39.08 times respectively on Day 3 of the issue opening.
Brokerage houses such as Motilal Oswal, Angel Broking, Nirmal Bang, Ventura Securities, Choice,Canara Bank Securities and Insec were positive towards the IPO. The reports highlighted key strengths of the companies like focused digital adoption, ability to successfully identify new regions and grow business, driven growth by substantial demand for affordable housing finance, well-diversified and cost-effective financing profile and strong capital sponsorship from marquee players like True North, Government of Singapore, Bessemer Venture Partners and Warburg Pincus.
The bidding for the IPO closed on Monday, January 25, 2021. The Company proposed to raise 1,153.71 crore which comprises of a fresh issue of Rs. 265 crore and an offer for sale of Rs. 888.71 crore by promoters and existing investor and individual shareholders.
Prior to the issue opening on 21 January, it raised 346 crs from 25 anchors. Amongst the FIIs it found interest from Nomura, Fidelity International, Eastspring, Morgan Stanley IM, Buena Vista, TT International, Grandeur Peak, Moon Capital, Discovery. Nomura was the largest investor among foreign institutions, buying 9.5% of the anchor investor portion for Rs 33 crore.
The Domestic Institutions who came in as anchor investors were ICICI Prudential MF, Birla MF, Nippon MF, White Oak, Sundaram MF, Motilal MF, IIFL AIF, Birla Life, Bharti AXA, Tata AIA, Edelweiss PE, Motilal AIF.
The Company provides housing finance essentially to first-home buyers pertaining to the lower or middle-income groups for buying or construction of homes. Spread across a network of 70 branches covering over 60 districts in 11 states and a union territory in India (as of September 2020), Home First has increased its scale of our operations in key urbanized regions in the states of Gujarat, Maharashtra, Karnataka and Tamil Nadu which holds a substantial demand for housing finance. Backed by technologically driven processes and easy loan progressions, the Company has made it easy to opt for housing loans with an average ticket of 10 lacs. As of September 30, 2020, Home First has serviced 44,467 active customer accounts, aggregating to an AUM of INR 3730 cr and Capital Adequacy stood at 51.7%.
Axis Capital Limited, Credit Suisse Securities (India) Private Limited, ICICI Securities Limited and Kotak Mahindra Capital Company Limited are the BRLMs to the issue.