The IPO of mortgage loan financier House 1st Finance opened today and the situation was 1.03 moments subscribed on Working day 1. The company has mounted a price tag band of 517-518 a share for its initial share-sale. The issue concludes on January 25. In advance of the IPO, the mortgage loan financier on Wednesday elevated 346 crore from anchor traders at 518 for each share, the higher end of the cost band. The anchor investors contain Nomura, Fidelity Intercontinental, Morgan Stanley India Financial investment Fund and Goldman Sachs.

Listed here are 10 things to know about Residence First Finance IPO:

1) The supply for sale is made up of shares value 435.61 crore by promoter Genuine North Fund V LLP, 291.28 crore by promoter Aether (Mauritius) Ltd, 120.46 crore by investor Bessemer India Money Holdings II Ltd and up to 41.3 crore by two particular person shareholders — PS Jayakumar and Manoj Viswanathan.

2) Submit problem, the shareholding of promoters in Household 1st Finance will come down to 33.70% from 52.85%.

3) The 1,153 crore IPO of Residence Very first Finance contains clean challenge of up to 265 crore and an supply for sale aggregating up to 888 crore by the promoters and current shareholders.

4) The company intends to utilise the net proceeds in the direction of augmenting its cash base to meet its future needs.

5) Axis Capital, Credit Suisse Securities (India) Pvt Ltd, ICICI Securities and Kotak Mahindra Funds Enterprise will handle the share sale.

6) KFIn Systems Pvt. Ltd is the registrar of the IPO.

7) The share allocation in Property Initial Finance is likely to be finalised on January 29 even though listing is probable on February 3

8) “Aided by its superior growth momentum on a more compact base, excellent underwriting specifications, and efficient collections management (GNPAs at <1% and modest credit costs), Home First Financ delivered healthy RoA of 2.7% in FY20. RoE of 11% looks modest owing to lower leverage at 4x in FY20. The issue is priced at post-money P/BV of 3.4x compared to its nearest competitor Aavas Financiers which trades at 6.8x on September BV," Yes Securities said in a note.

9) “At higher price band ( 518), the stock valued at 4.1 (x) 2QFY21 P/ BVPS. Factoring the superlative return ratios, ROA/ROE of 11%/3%, we believe that Home First Finance Company is worth subscribing. Thus we recommend subscribe,” LKP Securities said in a note.

10) Home First Finance is a technology-driven affordable housing finance company, backed by marque private equity players like True North, Warburg Pincus, Aether Mauritius and Bessemer India. “It registered loan and disbursements CAGR of 56.7% and 56.2% respectively over FY17-20. Along with strong growth, the company managed to tweak its loan mix – housing loans’ share came off from 96.7% in FY17 to 92% in FY20 and share of LAP improved from 2.1% to 5.1%. Lending spread also improved significantly from 3.3% in FY17 to 4.5% in FY20,” Yes Securities said. As of September 2020, the company had an assets under management of 3730 crore.

Subscribe to Mint Newsletters

* Enter a valid email

* Thank you for subscribing to our newsletter.