The season of IPO is again picking steam and the 3rd IPO for the year shall be by a housing finance company Home First Finance Company (HFFC). The public issue shall open for subscription on January 21 with a price band of Rs 517-518 per share. The issue will close on January 25.
The Rs 1,153.72-crore public issue of the Mumbai-based company comprises of a fresh issue of Rs 265 crore and an offer for sale (OFS) of Rs 888.72 crore by promoters and existing shareholders.
The OFS includes Rs 435.61 crore worth of shares by promoter True North Fund V LLP, Rs 291.28 crore shares by promoter Aether (Mauritius), Rs 120.46 crore by investor Bessemer India Capital Holdings II, Rs 28.43 crore by PS Jayakumar, and Rs 12.92 crore by Manoj Viswanathan.
Interested investor can place their bids for a minimum of 28 shares and in multiples of 28 shares thereafter. The shares are expected to list on February 3, 2021.
The company will deploy the net proceed from the issue to augment its capital base to meet the future capital requirement and to achieve share listing benefits on the exchange.
Axis Capital, Credit Suisse Securities (India), ICICI Securities and Kotak Mahindra Capital Company are the book running lead managers to the issue.
HFFC is a affordable housing finance company, providing home loans to customers from low and middle-income groups. The company's asset under management (AUM) as of September 2020 stood at Rs 3,730 crore with a net worth of Rs 988 crore and gross non-performing assets of 0.74 percent.
In the grey market, which likely suggest the scrip's prospects post the listing, the scrip traded higher by Rs. 100 today.
shares were seen trading with a premium of Rs 100 at Rs 618 over the IPO price in the grey market today.
Investors can as per the views of experts can subscribe to the issue only for the listing gains and as the scrip can be seen under pressure due to increasing NPAs, then can go on to accumulate for the long run.