Home First Finance IPO: 3rd IPO of 2021 opens Jan 21; check issue price, grey market premium, other details

Home First Finance Company India Initial public offer (IPO) is set to open for subscription on January 21 with a price band at Rs 517-518 apiece of the face value of Rs 2 each. Mumbai based housing finance company’s issue will close on January 25, 2021. The Rs 1,153.72-crore issue comprises a fresh issue of Rs 265 crore and offer-for-sale (OFS) of Rs 888.72 crore by promoters and existing shareholders. Home First Finance Company India shares were seen trading with a premium of Rs 100 at Rs 618 over the IPO price in the grey market today.

This will be the third IPO of 2021, as the Indian Railway Finance Corporation (IRFC) issue is presently open for subscription. And Indigo Paints initial public offer will open on January 20, 2021, for the subscription. AR Ramachandran, Co-founder & Trainer, Tips2Trade, told Financial Express Online that Home First Finance Company’s financials are very good with a strong growth trajectory. “We believe the post moratorium NPAs could spook the investors in the coming quarters,” he said. Ramachandran advised investors to subscribe only for listing gains and wait for lower levels to accumulate stock from a long term perspective.

Investors can make bids for a minimum of 28 equity shares and in multiples of 28 shares thereafter. Up to 50 per cent of the issue will be reserved for Qualified Institutional Buyers (QIBs), 35 per cent for the retail category and 15 per cent for the non-institutional category. Axis Capital Ltd, Credit Suisse Securities (India) Pvt Ltd, ICICI Securities Ltd, and Kotak Mahindra Capital Company Ltd are the book running lead managers to the issue. The registrar to the issue is KFin Technologies Pvt Ltd. Home First Finance Company is planning to utilise the net proceeds from the issue towards augmenting its capital base to meet future capital requirements, arising out of the growth of our business and assets. The shares are proposed to be listed on BSE and NSE.

The 2010-founded Home First has a significant presence in the urbanized regions of Gujarat, Maharashtra, Karnataka and Tamil Nadu and has sanctioned over 50,000 home loans.