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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