HFFC is a technology driven affordable housing finance company targeting first time home buyers in the low and middle-income groups. Home First Finance Company is a niche HFC with an AUM of `3,730 cr as of 1HFY21.
It focuses on the affordable housing segment for salaried/self-employed segments in tier 2-5 towns, with largest exposures in Gujarat, Maharashtra and Tamil Nadu.
The key advantages for HFFC are small size and niche positioning which sets it up for growth as well as provides pricing power in its customer base, its ability to leverage technology for better service delivery, funding availability with competitive cost of funds, strong parentage and high capitalisation (Tier 1 CAR of 50.4% as of 1HFY21).
HFFC’s home loan yields at 12.9% are among the highest across listed peers. This is primarily due to focus on a customer base which is unserved/under-served and which faces difficulties in accessing credit at a quick TAT.
In the medium to long term, HFFC should be able to take advantage of strong underlying growth momentum in the affordable housing space. We believe its strong metrics and high growth would lead to healthy EPS growth and therefore, healthy returns from the issue price. We recommend Subscribe.
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|Issue Opens on||21-Jan-21|
|Issue Closes on||25-Jan-21|
|IPO Price||₹ 517 - ₹ 518 per share|
|Face Value||₹2 per equity share|
|IPO Size||₹ 1,154 Cr|
|IPO Lot Size||10 Shares|
|Listing on||Bombay Stock Exchange & National Stock Exchange|
|QIB||50% of Net Issue|
|NII||15% of Net Issue|
|Retail||35% of Net Issue|