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Home First Finance Company (HFFC), an affordable housing finance firm, has received SEBI’s nod to raise ₹1,500 crore through an IPO.
The company had filed a draft red herring prospectus (DRHP, the initial papers for the IPO) with the market regulator on November 28, 2019.
The IPO consists of a fresh issue of up to ₹400 crore and an offer for sale of up to ₹1,100 crore by the selling shareholders. The shares, of face value ₹2 each, will be listed on the NSE and the BSE, according to note on the SEBI website.
True North Fund V LLP, Aether (Mauritius) Ltd, Bessemer India Capital Holdings II Ltd, PS Jayakumar, Manoj Vishwanathan and Bhaskar Chaudhry are the promoters selling shares.
Pre-IPO placement
According to the DRHP, the company may consider a pre-IPO placement of up to ₹160 crore. Depending on the success of the pre-IPO placement, the size of the fresh issue will be reduced.
The company intends to utilise the net proceeds to augment its capital base to meet its future capital requirements.
Between FY17 and FY19, Home First’s gross loan assets grew at a CAGR of 69.8 per cent, from ₹847.32 crore to ₹3,113.37 crore, as of September 30, 2019.
Salaried customers accounted for 72.6 per cent of its gross loan assets, while the self-employed accounted for 24.6 per cent.
Axis Capital, Credit Suisse Securities (India), ICICI Securities and Kotak Mahindra Capital Company are the book running lead managers for the share sale.
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