Home First, founded in 2010 by PS Jayakumar, Jaithirth Rao and Manoj Viswanathan is an affordable housing finance company. The company primarily caters to the low and middle income groups by offering them housing loans to construct and buy homes. It further offers other loans like loans against property, developer finance loans, and loans to buy commercial property. Over the last 10 years, the company has sanctioned home loans to more than 50,000 customers in 60 districts, across 11 states and 1 union territory. As of September 30, 2020, Total Borrowings were ₹ 2,636.57 crores. It typically obtainlong-term funding from a variety of sources including private and public sector banks.
Selling Promoter – True North and Aether
|Objects of the issue||· To augment company’s capital base to meet future capital requirement
· To achieve share listing benefits on the exchange.
· General corporate purpose
|Issue Size||Issue Size – 1153 Crore
Offer for Sale- 888 Crore
Fresh Issue- Rs.265 Crore
|Face value||Rs.2 Per Equity Share|
|Issue Price||Rs. 517– Rs. 518|
|Bid Lot||28 shares|
|Listing at||BSE, NSE|
|Issue Opens:||21st January 2021 – 25th January 2021|
|QIB||50% of Net Issue Offer|
|NIB||15% of Net Issue Offer|
|Retail||35% of Net Issue Offer|
Check Home First Finance Ltd. IPO Allotment Status
Home First FinanceLimited IPO allotment status would be available soon after the IPO closure date. Usually the allotment comes within a week from the closing date which in this IPO yet to be announced.
One can check the allotment on the given below link with PAN number or Application number or DP Client Id. All you need to do is to follow these steps:-
- To Home First Finance Limited IPO Allotment Status
- Go to Application Status
- Select IPO as Home First Finance Ltd. IPO
- Enter your PAN Number or Application Id or DP Client Id.
|Shareholding Pattern||Pre- Issue||Post Issue|
|Promoters & Promoters Group||57.85%||33.70%|
- Technology-driven affordable housing company.
- Strong penetration in the largest housing finance market.
- Diversified lead source channel.
- Experienced and qualified managerial team.
- The largest states where it operates are Gujarat (39% of loans), Maharashtra (21%), Tamil Nadu (10.5%) and Karnataka (9.3%).
- Housing loans for the purchase or construction of homes comprised 92.1% of Gross Loan Assets, as of September 30, 2020. Over FY17-H1FY21, the share of salaried customers increased from 69% to 73%.
- Leveraging the growth opportunity provided by affordable housing, Home First has grown its AUM to Rs. 3,618 crores from Rs. 1,356 crores over the period FY18-20.
- Home First has posted strong growth in net interest income (NII) of 58.6 percent CAGR between FY18-20 while net profits have grown at a CAGR of 122.6 percent during the same period.
- Company’s asset quality has remained largely stable with gross non-performing assets (NPA) and net NPA largely stable at 0.7 percent and 0.5 percent respectively at the end of September 2020.
- Any disruption in sources of funding could have an adverse effect on business, results of operations and financial condition.
- Engaged in a highly competitive business and any failure to effectively compete could have a material adverse effect
- Risk of non-payment or default by borrowers may adversely affect business, results of operations and financial condition.
The overall book of Home First grew at 61% CAGR over Fiscals 2015 to 2020, which is the highest among peers. It managed to change its housing loans’ share to 92 per cent in FY20 from 96.7 per cent in FY17 and share of loan against property (LAP) to 5.1 per cent from 2.1 per cent. The market for affordable housing loans logged a CAGR of approximately 12% over Fiscals 2015 to 2020. CRISIL Research expects by Fiscal 2023 affordable housing outstanding credit to increase at approximately 9% to 10% CAGR to ₹ 11.9 trillion. At the higher end of the price band of Rs. 518, the stock valued at 4.5 times H1FY21 price to book value on post issue equity basis compared to its nearest competitor Aavas Financiers which trades at 6.8 times on September book value. We would recommend subscribe to this IPO considering strong financials of the company.
DISCLOSURE IN PURSUANCE OF SECTION 19 OF SEBI (RA) REGULATION 2014
Elite Wealth Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Advisors Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as read more
For Daily Share Market Updates, Daily debt market review, Market Research Analysis reports, Weekly Techno-Funda Report, Fundamental Analysis Report, Monthly Recommended stock Picks, Equity Trading Tips, Upcoming IPO/NFO/Bonds/Ncd’s updates & other related information Subscribe our research plan