Home First Finance Company IPO

It looks like IPOs are going to be the talking point for Indian economists this year. The stock market IPO calendar seems to be getting longer, as it gets yet another entrant – this time Home First Finance Company IPO.

Know about the upcoming IPOs namely:

• Nazara Technologies IPO Review

Home First Finance Company is yet another addition to the list as they look to tap the primary market to raise Rs 1500 Crore.

The Mumbai based mortgage financier has opted to go public as they plan to further increase their capital base for any future developments.

Also, the IPO will help them promote their brand through listing on two of the major stock exchanges of NSE, BSE. 

Markets have slowly and steadily been picking up the pace and with high liquidity in the market, this seems like an excellent time for companies to float their IPOs.

Investors apparently would be licking their lips at the prospect of purchase stocks at the lowest possible price.

So, if this grabs your attention, follow this article to learn more about the HFFC IPO.

Home First Finance Company IPO Review

Home First Finance Company established in 2010, is a finance company operating in the affordable housing category. 

The company filed for DRHP (Draft Red Herring Prospectus) with SEBI in November 2019 and had plans to launch the IPO last year. However, the corona pandemic put a barrier to those plans. 

As per SEBI rules, the company has time till March 2021 to float its IPO. 

The issue is made up of fresh issue of shares worth ₹265 Crore and an Offer for Sale amounting to ₹888.72 Crores. While the proceeds of the issue as mentioned in the DRHP will be used for :  

• Increasing the company’s capital base to meet our future capital requirements, arising out of the growth of our business and assets
• To receive the benefits of listing Company’s equity shares on stock exchanges
• enhancement of the Company’s brand name 
• creation of a public market for our equity shares in India.

The Mumbai based financier has physical branches in the states of Gujarat, Maharashtra, Karnataka, and Tamil Nadu. Thus an IPO listing can pave new avenues for the company.

In addition to the fresh issue, the IPO consists of an offer for sale worth Rs 1100 Crore, which is to be distributed among the selling shareholders.

The below table consists of all the Home First Finance Company IPO details that will be useful to any interested investors:

 

ICICI Securities, Credit Suisse Securities, Axis Capital and Kotak Mahindra Capital Company have been brought in as the Book Running Lead Managers (BRLMs) to look over the issue 

The company will decide the maximum bid amount after consulting the BRLMs. The equity shares each have a face value of Rs 2 and will be listed on both the major stock exchanges of India – NSE, BSE. 

Here we have attached a table that illustrates the company’s financial performance. The data is as mentioned in the DRHP paper.

 

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Home First Finance Company IPO Promoter 

The Home First Finance Company IPO promoter group consists of institutional investors – True North Fund V LLP and Aether (Mauritius) Limited.

In addition there are individual shareholders who are looking to sell their equity shares. The total equity share made up by the promoter and promoter group aggregates to around 99.94 of the entire issue. 

The below table shows the shareholding pattern of the promoters.

 

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Home First Finance Company IPO Issue Date

The Home First Finance Company IPO is set to arrive on 21 January 2021. The issue will be a 4 day affair ending on 25 January 2021.

 

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Home First Finance Company IPO Market Lot

Home First Finance Company IPO market lot is 28 shares per lot. The maximum number of shares that an investor can purchase are capped at 364. 

Thus, with the price band of Rs 518, ₹14,504 is the minimum amount an investor can bid. While the maximum amount can go upto ₹188,552.

 

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Home First Finance Company IPO Allotment Status 

The Home First Finance Company IPO hasn’t yet arrived, since the company is still undecided about the listing date. 

The shares bought in the IPO will be credited to the investor’s demat account within some days after the IPO close date.

 

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Home First Finance Company IPO GMP

Home First Finance Company IPO GMP (Grey Market Premium) is ₹618 at the moment. The IPO shares are priced at ₹517 – 518, the same shares are enjoying a premium of over ₹100 in the grey market.

GMP plays a significant role in helping investors decide whether or not to invest in an IPO. GMP is nothing but the prices at which a listed company’s equity shares are traded in the grey market, is the Grey Market Premium. 

Grey Market Premium gives an idea of the listing day price of the IPO. Investors are attracted by the prospect of a hIgher GMP. 

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How To Apply For Home First Finance Company IPO

Investors can apply for the Home First Finance Company IPO through the ASBA or Application Supported by Blocked Account process.

There are some basic requirements that an investor for applying to an IPO through ASBA, 

• The investor will need to have a demat account with a SEBI registered stockbroker. 
• Also, the investor should have a savings account with a Self Certified Syndicate Bank (SCSB). These are certain banks that comply with the SEBI rules and regulations.

So, if you want to invest in the IPO, you will need to have a Demat account 

If you are lacking on the first requirement, allow us the opportunity to help you with opening a Demat account. Fill in your Name and Contact Number in the form below.

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Apply For Home First Finance Company IPO Through ASBA

Once the investor has ensured that they fulfill the ASBA requirements, then they may proceed to apply for Home First Finance Company IPO Through ASBA. 

There are two methods – Online and Offline through which an individual can apply for IPO. 

We have discussed the steps of each process below:

Online Method

1. The investor will need to access the NSE official website and fill the ASBA form. 
2. The ASBA Form contains basic details such as –

• Name of the Applicant 
• PAN Number
• Demat Account Number 
• Bidding details such as Bid Quantity, Bid Price, etc. 

The ASBA form is an instruction to the bank to block the amount used for purchasing a company’s equity shares through an IPO until the shares are credited to the investor’s Demat account. 

3. The SCSB verifies all the details included in the form and then uploads the bid on the NSE ASBA system.

Offline Method

For applying for the Home First Finance Company IPO offline, traders will need to visit their SCSB and fill the ASBA form. 

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Home First Finance Company Company Information

Home First Finance Company is a Mumbai based mortgage financier that provides housing loans and largely caters to the affordable housing segment. 

HFFC is a mid-sized lender that was first incorporated in 2010 and has 65 branches in states such as Gujarat, Maharashtra, Karnataka, and Tamil Nadu. The company which leverages technology is set to hit the capital markets in 2020

The company filed its DRHP papers with SEBI in November 2019 had to defer its IPO plans by a year because of the markets being left in a bad state by the Coronavirus pandemic.

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Conclusion

The Home First Finance Company IPO expected to hit the markets in January 2021 will possibly be prolonging the IPO season. The Mumbai based mortgage financier plans to inject the profit money back into the business. 

Established in 2010, the company operating in the affordable housing segment filed for DRHP with SEBI in 2019 and plans to float the IPO worth Rs 1500 crore.

As per the DRHP, the offer is made up of fresh issue of equity shares worth Rs 400 crore and an Offer For Sale (OFS) amounting to ₹888.72 crore. The shares on offer during the issue each have a face value of Rs 2. 

HFFC IPO can be a great place for investors who are looking to shop shares for the long run. The shares bought from the IPO are highly liquid and can be sold immediately. Thus, these shares have a two-fold advantage for investors.

The company registered huge profits in the last fiscal and looks to be on the right track to continue growing. We believe the IPO can be a game-changer for the company as well as the investors. Don’t sleep on this one.

Investors can apply for the IPO through the ASBA process. However, they must ensure they fulfill the basic criteria of having a Demat account and a savings account in any of the SCSBs. 

Investors who don’t yet have a demat account can leave their Name and Contact Number with us in the form below. We will help arrange a callback from a stockbroker.

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