Hot on the heels of the IRFC and the Indigo Paints IPOs is the third public issue for the week, that of Home First Finance Company. Let’s dive into the company’s details, shall we?
Price band: ₹517-518
Lot size: 28
Issue opens on: 21 January 2021
Issue closes on: 25 January 2021
Basis of allotment date: 29 January 2021
Initiation of refunds: 1 February 2021
Credit of shares to Demat account: 2 February 2021
Expected listing date: 3 February 2021
Registrar: KFin Technologies Private Limited
Contact: M Murali Krishna, +91 40 6716 2222
E-mail: hffcl.ipo@kfintech.com
Click here to apply for the IPO
About the company
Founded in 2010 by Jaithirth Rao, P S Jayakumar, and Manoj Viswanathan, Home First Finance Company (HFFC) is a fintech company focussed on the affordable housing space. It is backed by US-based venture capital companies such as Warburg Pincus, True North and Bessemer Venture.
It allows borrowers to apply for home loans via a smartphone app, which makes the loan application process paperless. HFFC’s front-end team visits the applicant in person to appraise the borrower. The company also deploys proprietary machine-learning algorithms to assess the credit-worthiness of a customer.
As of 30 September 2020, the company had a network of 70 branches covering over 60 districts in 11 states and a union territory in India. It has a significant presence in Gujarat, Maharashtra, Karnataka and Tamil Nadu.
It has serviced 44,796 active loan accounts, with the average ticket size ₹10.1 lakh for housing loans. In addition to home loans, HFFC also offers loans against property, developer-finance loans and loans for purchase of commercial property.
In FY20, the company clocked over ₹3,600 crore in assets under management, growing its books 48% over FY19. Its revenues, too, have shown consistent growth. For instance, the company reported topline revenues of ₹134.2 crore in FY18, ₹270.9 crore in FY19, ₹419.6 crore FY20, and ₹243.1 crore in H1FY21. Profit after tax for the corresponding fiscals stood at ₹15.9 crore, ₹45.2 crore, ₹79.2 crore and ₹52.9 crore, respectively.
About the issue
The public offer comprises a fresh issue worth ₹265 crore and an offer for sale of ₹888.7 crore by Bessemer Venture, putting the total size of the issue at nearly ₹1,154 crore. Meanwhile, the company aims to utilise the capital raised via the fresh issue to meet its capital requirements for growing its business.
The quota for qualified institutional buyers (QIB) in the issue has been capped at 50%. Further, not less than 15% of the offer shall be available for non-institutional investors, while 35% is allocated for retail investors. To know more about the IPO, read its red herring prospectus here. You can subscribe to the HFFC IPO with Upstox here. Meanwhile, we’ll keep you posted on all the updates about this IPO and the public issues that follow!
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