Home First Finance Company (HFFC) IPO Open Today: Mumbai-based affordable housing finance company Home First Finance is launching its third IPO of 2021 on January 21. This issue of Home First Finance Company will be about 1154 crores. The price band for this IPO has been fixed at Rs 517-518. Investments can be made in this IPO from January 21 to January 25. Prior to launching the IPO, the company has raised Rs 346 crore from anchor investors. Some experts and brokerage houses are positive about the IPO and are advising to subscribe. If you also want to invest in IPO, then it is important to pay attention to some things first.
What is your opinion on investment?
Brokerage house this securities Have suggested subscribing to the IPO. The brokerage says that the company gives loans to low-income classes and middle classes to buy or build a house. The company’s custodial base is strong. Home First Finance’s loan and disbursement growth has been 56.7 per cent and 56.2 per cent CAGR during FY 2017 to 2020. Growth Momentum is also seen going forward. Based on technology. Due to this, the company will benefit in this digital age. The company’s return ratio is healthy and the stock price is attractive for the issue. In such a situation, investors should invest in the IPO.
Brokerage House Ventura Securities Has also advised to invest in IPO. The brokerage says that the company’s network is in 11 states and the company currently has 70 branches. The company will benefit from the government’s focus in the affordable housing segment. The company is expected to witness strong growth due to acceleration in urbanization, demand for independent housing and government’s plan Housing for All.
Price band Rs 517-518
The price band for the IPO has been fixed at Rs 517-518. 265 crore fresh equity shares will be issued in the IPO of Home First Finance. At the same time, in this IPO, shares of Rs 888.72 crore will be offered through the company’s promoters offer for sale. Through this IPO, the investors of the company will reduce their stake in True North, Singapore’s Wealth Wealth Fund GIC, Bessemer Venture Partners and the company’s founder PS Jayakumar.
Lot Size for IPO
Home First Finance’s IPO will have a lot size of 28 shares; That is, at least 28 shares have to be bid. If you look at the upper price band of Rs 518, then investors will have to invest at least Rs 14504 in it. After this, investments can be made in its multiple.
How much reserve for
In this IPO, up to 50 percent of the shares will be reserved for qualified institutional buyers. While 35 per cent is reserved for retail investors and 15 per cent for non-institutional agencies. Axis Capital Limited, Credit Suisse Securities (India) Private Limited, ICICI Securities Limited and Kotak Mahindra Capital Company Limited will be the book running lead managers. whereas. KFin Technologies Pvt Ltd for IPO Is the registrar
The financial health of the company
Home First Finance started in 2010. The company is a Technology Drive Affordable Housing Finance Company. The company offers home loans to low and middle-class customers. In more than 60 districts of 11 states, the company has loaned loans to more than 50 thousand customers. As of September 2020, the company’s AUM was Rs 3,730 crore, while the net worth was Rs 988 crore. The company’s gross non-performing asset was 0.74 percent. As of September 2020, the company had a 44 per cent annual growth in profits in the first half of last year; The company had a profit of 52.95 crores in 6 months. While revenue stood at Rs 88.2 crore with 37 percent growth. The company made a profit of 79.25 crore in FY 2020. While this revenue of 151.27 crores came.