Home First Finance files DRHP with SEBI for IPO

New Delhi [India], Nov 29 (ANI): Mortgage financier Home First Finance Company (HFFC) on Friday filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for its proposed initial public offering (IPO).
According to the DRHP, the IPO will be worth Rs 1,500 crore. It consists of a fresh issue aggregating up to Rs 400 crore and an offer for sale of up to Rs 1,100 crore by the selling shareholders.
True North Fund V LLP Aether (Mauritius), Bessemer India Capital Holdings II, P S Jayakumar, Manoj Vishwanathan and Bhaskar Chaudhry are the promoter and investor selling shareholders.
Further, the DRHP said that the company may consider a pre-IPO placement of up to Rs 160 crore in consultation with the book running lead managers. If the pre-IPO placement is undertaken, the amount will be reduced from the fresh issue.
Axis Capital, Credit Suisse Securities India, ICICI Securities and Kotak Mahindra Capital have been appointed as the book running lead managers.
Up to 50 per cent of the offer will be available for allocation to qualified institutional buyers. Further, up to 15 per cent of the offer will be available for allocation on a proportionate basis to non-institutional bidders and 35 per cent of the offer will be available for allocation to retail individual bidders.
The equity shares of face value Rs 2 each will be listed on National Stock Exchange and Bombay Stock Exchange.
The company intends to utilise the net proceeds towards augmenting its capital base to meet its future capital requirements, arising out of the growth of its business and assets and to receive the benefits of listing of the equity shares on the stock exchanges.
Home First has been the first port of call for over 30,000 customers, most of them falling under the PMAY scheme across urbanised regions of Gujarat, Maharashtra, Karnataka and Tamil Nadu which account for 79 per cent of the affordable housing market.
The company's loans have an average ticket size of Rs 10.4 lakh mainly accounting for purchase and construction of homes. (ANI)