Home First Finance Company India Limited IPO
Home First Finance Company India, incorporated in 2010, is a technology-driven housing finance company. It targets the low and middle-income families who are first-time home buyers. The company offers loans for the purchase & construction of the houses. It also offers other loans like developer finance loans, loans for commercial property, loans against property, and many more.
As of 31 March 2020, it has a strong network of 68 branches across 60 districts in the 11 States and 1 union territory. The company has a housing loan contribution of Rs. 3,323.06 crores of its total loan portfolio. The company’s AUM has grown at a CAGR of 60.8% from FY15 to FY20.
In FY20, the company has given 10,115 retail housing loans against 7,778 loans in FY19, recording a growth of 30.1%. Its total revenue and net profit have registered a growth of 54.80% and 76% in the FY 2020 over the FY 2019 respectively. As of September 2020, the company has total assets of Rs.3,722.76 Crores.
The company has a technology-driven system to process loan applications and advance the customer experience. It also offers quick loans through its mobile application. As of March 2020, it has 43,094 live loans.
The promoter of the company is TN V LLP and Aether Limited.
Strengths of the company:
- Home first finance is a technology-driven company having a scalable operating model.
- The company has a customer-centric organizational commitment which helped to build strong relationships with their customers.
- It has strong penetration in the largest housing finance markets along with diversified sourcing channels.
- The company follows an underwriting process backed by data science.
- The company has a technology-driven loan collections system.
- The company has a well-diversified and cost-effective financing profile.
- The company has a well-qualified and experienced management team.
Purpose of the IPO:
- To meet the costs of the general corporate purposes.
- To maintain the minimum capital adequacy requirements
- To increase the company’s capital base for meeting the requirements of its future business growth.
Financial Performance of the company:
| 30 Sep 2020 | FY 2020 | FY 2019 | FY 2018 | |
| Total Revenue | 243.17 | 419.67 | 270.92 | 134.23 |
| Total Expenses | 172.83 | 312.34 | 205.72 | 109.96 |
| Profit after tax | 52.94 | 79.55 | 45.20 | 15.99 |
| Total Assets | 3,722.76 | 3,480.20 | 2,482.00 | 1,364.94 |
*All the values are in crores
*FY18 & FY19 as per DRHP and FY20 & HY21 as per the annual/quarter report.
Valuation of the company:
| 30 Sep 2020 | FY 2020 | FY 2019 | FY 2018 | |
| Basic Earnings per Share (EPS) | 6.76 | 10.81 | 7.82 | 3.10 |
| Diluted Earnings per Share (EPS) | 6.59 | 10.57 | 7.65 | 3.02 |
| Return on Net Worth (%) | 5.35% | 8.53% | 8.64% | 4.92% |
*FY18 & FY19 as per DRHP and FY20 & HY21 as per the annual/quarter report.
Home First Finance Company India limited DRHP
IPO details:
| Face Value | ₹2 per equity share |
| Market Lot | 28 Shares |
| Minimum Order Quantity | 28 Shares |
| Price Band | ₹517 - ₹518 per equity share |
| Issue type | Book Built Issue IPO |
| Issue Size | ₹1,153.72 crores |
| Fresh Issue | ₹265 Crores |
| Offer for Sale | ₹888.72 Crores |
| Listing | NSE, BSE |
Important IPO dates:
| Open Date | 21st January 2021 |
| Close Date | 25th January 2021 |
| Basis of Allotment Date | 29th January 2021 |
| Initiation of Refunds | 01st February 2021 |
| The credit of shares to Demat Account | 02nd February 2021 |
| Listing Date | 03rd February 2021 |
Allocation Quota:
| Category | Portion |
| Qualified Institutional Buyers (QIBs) | Not more than 50% |
| Non- Institutional Buyers (NIIs) | Not less than 15% |
| Retail Investors | Not less than 35% |
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