HFFC IPO Latest News and Subscription Status Today [Live]

January 25-Day 3

As of 4.55 p.m.

• The HFFC IPO has been subscribed 26.65 on the final day of bidding.
• The issue received bids for 41.63 crore shares against an offer size of 1.56 crore shares.

Subscription status for each investor category:

• Retail Investors: 6.57 times
• Qualified institutional investors: 52.5 times
• Non-institutional investors: 39 times

As of 1.30 p.m.

• The HFFC IPO has been subscribed, around 5 times, so far on day 3 (January 25) of bidding.
• The issue received bids for 7.8 crore shares against an offer size of more than 1.56 crore shares.

Subscription status for each investor category:

• Retail Investors: 5 times
• Qualified institutional investors: 7.5 times
• Non-institutional investors: 1.54 times

January 22-Day 2

As of 5.00 p.m.

• The HFFC IPO was fully subscribed, around 2.2 times, at the end of day 2.
• The issue received bids for 3.46 crore shares against an offer size of more than 1.56 crore shares.

Subscription status for each investor category

• Retail Investors: 3.4 times
• Qualified institutional investors: 1.35 times
• Non-institutional investors: 61% times

As of 12.50 p.m.

• The IPO was subscribed 1.25 times so far on Day 2
• Total bids received: 1.94 crore shares
• Issue size: 1.56 crore shares

January 21- Day 1

As of 5.00 p.m.

• The HFFC IPO was fully subscribed, around 1.08 times, at the end of day 1.
• The issue received bids for 1.62 crore shares against an offer size of more than 1.56 crore shares.

Subscription status for each investor category:

• Retail Investors: 1.29 times
• Qualified institutional buyers: 1.28 times
• Non-institutional investors: 12.7%

As of 1.20 p.m.

• The HFFC IPO has been subscribed 33% so far.
• The issue received bids for 51.69 lakh shares against an offer size of more than 1.56 crore shares.

Subscription status for each investor category:

• Retail Investors: 56%
• Qualified institutional buyers: 17%
• Non-instituitional investors: 0.8 times

More About The IPO

Home First Finance Company (HFFC) is set to launch its maiden IPO on January 21, 2021, after its attempt to launch it earlier was delayed by the pandemic. This will be a three-day public issue and will close on January 25, 2021.

The price band has been fixed at Rs.517-518 per share with a minimum bid of 28 shares. HFFC first received approval from the Securities and Exchange Board of India (SEBI) for launching its IPO in March 2020. Subsequently, in October 2020, Orange Clove Investments BV (an affiliate of Warburg Pincus LLC) invested around Rs.700 crore and picked up a 25 percent stake in HFFC. Looking at the launch of the IPO as an excellent opportunity to increase its presence in the financial services sector in India, Orange Clove purchased an additional 5.03 percent shares from existing shareholders in early January 2021, taking its stake in HFFC up to 30.62 percent.

HFFC plans to raise Rs.1153.71 crore through the IPO offer of around 2.22 crore shares. This includes a fresh issue of 51.15 lakh shares totaling Rs.265 crore, and an offer for sale for 1.71 crore shares totaling Rs.888.72 crore. Also, 50% of the offer is reserved for QIBs or Qualified Institutional Buyers, 35% for Non-Institutional Buyers, and 15% for Retail Investors. The offer for sale consists of:

• Rs.435.61 crore worth of shares by True North Fund V LLP
• Rs.291.28 crore worth of shares by Aether (Mauritius)
• Rs.120.46 crore worth of shares by Bessemer India Capital Holdings II
• Rs.28.43 crore worth of shares by PS Jayakumar
• Rs.12.92 crore worth of shares by Manoj Viswanathan

The anchor investor’s portion will be open for subscription on January 20, 2021.

Earlier in January, Motilal Oswal Financial Services said in a press release that in the next two years Housing Finance Companies are expected to generate around 12-17% Return on Equity as credit costs normalize. Motilal Oswal also said that affordable housing has been showing early signs of revival since the last quarter of 2020.

HFFC is a technology-driven housing finance company with a scalable operating model. It has an underwriting process driven by data science and a robust collections management system. With the funds received from the IPO, the company plans to expand its business into regions with growing urbanization, commercialization, and household incomes. As of September 2020, the average ticket size of HFFC’s housing loans is Rs.10.1 lakh with an average loan-to-value on gross assets of 48.8%. While this places it at a lower competition intensity from its peers, its price-to-book value per share is better than other HFCs in the same segment.