About the Company:
Home First Finance Company is a technology driven affordable housing finance company that targets first time home buyers in low and middle-income groups.
Company primarily offer customers housing loans for the purchase or construction of homes, which comprised 92.1% of our Gross Loan Assets.
Company serves salaried and self-employed customers. Salaried customers account for 73.1% of our Gross Loan Assets and self employed customers account for 25.0% of Gross Loan Assets.
Company also offers other types of loans comprising loans against property, developer finance loans and loans for purchase of commercial property, which comprised 5.1%, 1.9% and 0.9% of our Gross Loan Assets, respectively.
The average ticket size of housing loans was Rs.1.01 million, with an average loan-to-value on Gross Loan Assets of 58.4%.
.Company has a network of 70 branches covering over 60 districts in 11 states and a union territory in India, with a significant presence in urbanized regions in the states of Gujarat, Maharashtra, Karnataka and Tamil Nadu.
Company utilizes a diverse range of lead sourcing channels such as connectors, architects, contractors, affordable housing developers, in addition to conducting loan camps and micro marketing activities, and utilizing employee and customer referrals and branch walk-in customers.
Company widely uses Technology for Business:
Home First Finance Company has leveraged technology in various facets of the business such as processing loan applications, managing customer experience and risk management.
Company has developed a paperless process to onboard customers efficiently and our well-trained front-end teams appraise customers by conducting home and workplace visits and ensure minimal disruption to a customer’s daily routine.
Company offers mobility solutions through dedicated mobile applications for our customers to enable quick and transparent loan related transactions.
Company also has an integrated customer relationship management and loan management system set up on a leading cloud based customer relationship platform providing us with a holistic view of all our customers.
From where does Home First Finance Company get Funds for Loan Disbursement?
- Company typically obtains long-term funding from a variety of sources including private and public sector banks, the NHB and through assignment transactions.
Who are the Founders of the Company?
Company was founded by Jaithirth Rao, P. S. Jayakumar and Manoj Viswanathan and commenced operations in August 2010.
Company is managed by professionals and our Promoters are True North Fund V LLP and Aether (Mauritius) Limited. Further, Bessemer has also invested in our Company.
Company has and expects to continue to benefit from strong capital sponsorship and professional expertise of our marquee shareholders.
In addition to assisting us with capital raising, our shareholders have assisted us in implementing strong corporate governance, which we believe have been critical to the growth of our operations.
How is Home First Finance Company rated by Rating Agencies?
- Company has improved the credit ratings from ‘CARE A-’ as of March 31, 2017 to ‘CARE A+’ as of September 30, 2020 and also currently have an ‘A+ (stable) rating from ICRA Limited.
Company’s Branch Network:
- As of September 30, 2020, Company had a network of 70 branches covering over 60 districts in 11 states and a union territory in India.
- Home First Finance Company’s primary competitors include Aavas Financiers Ltd, Aspire Home Finance Corporation Ltd, Aadhar Housing Finance Ltd and Aptus Value Housing Finance India Ltd.
Company’s key Financial and Operational Information:
- Mr. Deepak Satwalekar (Designation: Chairman and Independent Director)
- Mr. Sakti Prasad Ghosh (Designation: Independent Director)
Objectives of the Issue:
Offer for Sale: (Rs. 888.7 cr)
- Each of the Selling Shareholders will be entitled to the proceeds of the Offer for Sale, net of their proportion of Offer-related expenses and the relevant taxes thereon. Company shall not receive any proceeds from the Offer for Sale.
Fresh Issue: (Rs. 265 cr)
- Company proposes to utilise the Net Proceeds towards augmenting its capital base to meet future capital requirements, arising out of the growth of our business and assets.
Positives for the Company:
Technology Driven Company with Scalable Operating Model.
- Home First Finance Company is a technology driven affordable housing finance company and have built a scalable operating model, which enables company to expand operations and drive growth in revenue with lower incremental costs.
- Company has established a differentiated technology framework with customized systems and tools, enhancing convenience for customers as well as increasing operational
- Company has also deployed proprietary machine learning customer-scoring models to assist us with effective credit underwriting. The seamless integration and availability of data across platforms and users enables us to process loans in a paperless manner and with quick turn around times.
Expanding Branch Network in Large Affordable Housing Markets.
- Company intends to expand the business in a contiguous manner into regions with increasing urbanization, growing commercial activity and rising household incomes.
- Company currently operate 70 branches covering 11 states and a union territory in India, of which we had set up 29 branches between April 1, 2017 and September 30, 2020 and expect future growth to be from such branches as we continue to gain market share.
- Company also intends to increase the number of our branches to 90 by the end of the financial year 2022, in order to achieve deeper penetration in our existing 11 states and union territory.
- Company’s will be set up new branches to increase presence in existing districts as well as cover 20 new districts that have high growth potential.
Deep Penetration in the Largest Housing Finance Markets, with Diversified Sourcing Channels.
- Company had commenced operations in August 2010 and as of September 30, 2020, have a network of 70 branches covering over 60 districts in 11 states and a union territory in India.
- Company has successfully adopted a strategy of contiguous expansion across regions over the years and have strategically expanded to relevant geographies by evaluating areas with high economic growth and substantial demand for affordable housing finance, along with industry portfolio-at-risk levels and socio economic risk profile.
Financials of the Company:
|(in Crores)||FY 18||FY 19||FY 20||30th Sept 20|
Valuation of Peer Group Companies:
|Company Name||Face Value||EPS||PE Ratio||RoNW||NAV|
|Home First Finance Ltd||2||10.53||49.19||10.9%||126.06|
|Aavas Financiers Ltd||10||31.48||61.41||12.7%||267.87|
|Issue Opens on||21st January 2021|
|Issue Closes on:.||25th January 2021|
|Issue Price||Rs.517 – 518|
|Retail Category Allocation||35%|
|Minimum Lot||28 Shares|
|Minimum Investment||Rs. 14,504|
|Issue Size||Rs. 1153 cr ($155 million)|
|Market Cap||Rs. 4526 cr ($628 million)|
|Listing at||NSE & BSE|
|Equity Shares Offered (Fresh)||51,15,830|
|Equity Shares Offered (OFS)||1,71,56,370|
|Equity Shares Offered||2,22,72,200|
|Equity Shares Prior to the Issue||8,22,70,961|
|Equity Shares after the issue||8,73,86,791|
Also Read : List of Upcoming IPO’s in India.
|Finalization of Basis of Allotment||29th January 2021|
|Initiation of Refunds||1st February 2021|
|Credit of Equity Shares:||2nd February 2021|
|Listing Date:||3rd February 2021|
Subscription Details: (Will be Updated)
|(Subscription-Category-Wise (no. of times) Till time : 05:00 PM)||Shares Offered||Day-1||Day-2||Day-3|
IPO Valuation Parameters:
|Earnings Per Share (EPS)||Price To Earnings ratio (PE)||Return on Net Worth (RoNW)||Net Asset Value (NAV)|
|Check IPO Allotment Status:|
KfinTech Website http://kfintech/IPO/Allotment_Status
BSE IPO Website: https://www.bseindia.com/IPO/Allotment
|Company Contact Info:|
|Home First Finance Company Ltd
511, Acme Plaza
Andheri Kurla Road
Mumbai 400 059
Telephone: +91 22 6694 0386
|IPO Registrar Info:|
|KFin Technologies Private Limited
Selenium Tower B
Plot 31-32, Gachibowli
Financial District, Nanakramguda
Hyderabad 500 032
Tel: +91 40 3321 1000