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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

Home First Finance Ltd. IPO

Wants To Apply Online

 

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:-

  1. To Home First Finance  Limited IPO Allotment Status
  2. Go to Application Status
  3. Select IPO as Home First Finance Ltd. IPO
  4. Enter your PAN Number or Application Id or DP Client Id.

Home First Finance Limited IPO Allotment Status also available on BSE India

 

Home First Finance Ltd. IPO

Application Form

Financial Performance:

2021-01-21-Financial-Performance

Shareholding Pattern:

Shareholding Pattern Pre- Issue Post Issue
Promoters & Promoters Group 57.85% 33.70%
Public 47.15% 66.30%

 

Strengths:

  • Technology-driven affordable housing company.
  • Strong penetration in the largest housing finance market.
  • Diversified lead source channel.
  • Experienced and qualified managerial team.

Key Highlights:

  • 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.

Risk Factors:

  • 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. 

Outlook:

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


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