The IPO of Home First Finance Company (HFFC), a Mumbai based housing loan financing company, will be launched on January 21. The company is bringing this IPO to raise Rs 1153.72 crore. For this IPO, the company has fixed the issue price of the shares at Rs 517-518 per share. At the same time, its lot size is 28 shares. The IPO will be open for subscription from January 21 to January 25. Fresh shares worth Rs 265 crore will be issued in this IPO of Rs 1153.72 crore. At the same time, the promoters of the company will issue shares worth Rs 435.61 crore to the promoters of the company, True North Fund V LLP, in the IPO of Home First Finance Company, through the offer for sale (OFS) of Rs 888.72 crore.
At the same time, Aether (Mauritius) will issue shares worth Rs 291.28 crore and Bessemer India Capital Holdings II shares worth Rs 120.46. Apart from this, promoter PS Jayakumar of the company will issue shares worth Rs 28.43 crore. Also, Manoj Vishwanathan will issue shares of Rs 12.92 crore for this IPO. The company had earlier planned to issue fresh Rs 344.08 crore, but this had to be reduced to Rs 265 crore due to pre-IPO placement.
Third IPO of this year Home First Finance Company’s IPO is the third IPO of this year. The IPO of the Indian Railway Finance Corporation (IRFC) will be open for subscription till tomorrow. At the same time, the IPO of Indigo Paints will be launched on January 20. Home First Finance Company got approval from SEBI for this IPO only in February 2020. But the company could not bring its IPO time due to Coronavirus Pandemic. The company had time till March 2021 to launch this IPO. Let us tell you that Mumbai based Home First Finance Company is an affordable housing finance company, which started in 2010.
Warburg Pincus will not sell its shares Let me tell you that, Home First Finance Company has the backing of private equity funds, Warburg Pincus, True North, and GIC. However, in this IPO, Warburg Pincus will not sell its shares, because Valvar Pincus has locked stocks for 1 year.
The company has contracted to maintain its investment in HFFC for at least 1 year. Let us tell you that Warburg Pincus invested Rs 700 crore in HFFC in October 2020 itself. True North holds a 33% stake in Home First Finance Company, while Warburg Pincus has 25% stake in it.