IPO Details
Here is snap shot of the IPO
- Issue Opening – 21st Jan 2021
- Issue Closing – 25th Jan 2021
- Price Band – INR 518
- Lot Size – 28
- Minimum Investment Amount – INR 14,504
I have taken the maximum price band which is 518 above. The minimum price band is 517. It is better to apply at maximum price band.
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Business Overview
Home First Finance is new Company. It was founded in year 2010. The Company is in business of Housing Loans and provides below products.
- Home Loans
- Home Construction Loans
- Home extension and renovation loans
- Loan Against properties
- Home loan balance transfer and top up
- Shop loans
- Loans for Commercial properties
The Company has complete paper less process which is appealing to Tech Savvy customers who want whole loan application process to be hassle free and online. So this is one positive part of the Company loan approval process.
It also claims to have no income check before approving the loan which I think it just a marketing gimmickry but is very appealing to Customers. They are rated highly by Customers which is good for the Company.
Below are some highlights about Company which one should keep in mind
- Warburg Pincus invested in the Company in year 2020, TrueNorth invested in year 2017 and Bessemer Venture in year 2011
- AUM crossed 35 billion INR in just 10 years of incorporation
- 70 branches in just 10 years
- 29,000 customer figure was achieved in 9 years of operation. The first 5,000 came in 5 years of operation.
Based on above figures it is clear that Company has received funding from Equity Firms and also is expanding its foot print in different states of India. Earlier the Company was present in Gujarat and Tamilnadu. But now it is present in more than 25 cities across India.
Financial Snapshot
Below is the Financial Snapshot of the Company in year 2020.
- Total Assets – 34796
- Total Revenue – 4196
- Net Profit – 792
IPO Subscription Status
I will update this section on the last day of the subscription as per the trading plan mentioned in the Make Money with IPO Analysis article. This section will be updated at that time.
- QIB – 52.53 times
- NII – 39.00 times
- RII – 06.59 times
- Total Subscription is 26.66 times
Below is meaning of the Key terms used above
- QIB is (Institutes or Mutual Funds like HDFC AMC etc)
- NII is (People bidding for more than 2 lakhs in IPO application)
- RII is (People bidding for less than 2 lakhs)
- Employee and Others are Reserved Quota Investors.
My Opinion
Home First is operating is very competitive sector. Housing loan segment is dominated by players like HDFC, LIC Housing along with public and private sector banks. Each one of them offer housing loans. In such a competitive market entrant of a new player is tough.
The Company has managed to receive funding from Equity players and also has grown in last few years expanding its foot print to different parts of India as well as increasing the Customer base. But the Company size is very small. So one needs to understand that as well.
The Company may not receive good subscription due to competitive nature of business and struggle of housing finance companies like DHFL and Indiabull housing. So from IPO application point of view one needs to follow the make money with IPO article for any listing gain it may give.