Home First Finance Company (HFFC), a Mumbai-based affordable housing finance company, opens its first initial private offering (IPO) for subscription on January 21. The price band is at Rs 517-518 per share.
The Rs 1,153.72-crore IPO consists of a fresh issue of Rs 265 crore and an offer for sale of Rs 888.72 crore by promoters and current shareholders.
The offer for sale comprises Rs 291.28 crore shares by promoter Aether (Mauritius), Rs 435.61 crore shares by promoter True North Fund V LLP, Rs 120.46 crore by investor Bessemer India Capital Holdings II, Rs 12.92 crore by Manoj Viswanathan, and Rs 28.43 crore by PS Jayakumar.
Home First Finance's IPO will the third public offer in 2021 after IRFC, which is currently open for subscription, and Indigo Paints, which will open on January 20. A total number of six IPOs are scheduled for January 2021.
HFFC cut its fresh issue size from Rs 344.08 crore to Rs 265 crore due to its pre-IPO placement. The company has undertaken a preferential allotment of over 22.40 lakh equity shares to Orange Clove Investments B.V., an affiliate of the global private equity funds managed by Warburg Pincus at a price of Rs 334.72 per share, for a consideration of Rs 75 crore, in October last year.
The company has also undertaken a preferential allotment of 1.22 lakh equity shares to its employees at a same price, for a consideration of Rs 4.08 crore in November last year.
In March last year, HFFC had received the approval from the Securities and Exchange Board of India (Sebi) to launch its IPO. The IPO will close on January 25.