Mortgage financier Home First Finance Company (HFFC) has fixed a price band of Rs 517-518 a share for its initial share sale, which will open for public subscription on January 21. Home First Finance Company India shares were seen trading with a premium of Rs 100 at Rs 618 over the IPO price in the grey market today.
This will be the third IPO of 2021, as the Indian Railway Finance Corporation (IRFC) issue is presently open for subscription. And Indigo Paints initial public offer will open on January 20, 2021, for the subscription. AR Ramachandran, Co-founder & Trainer, Tips2Trade, told that Home First Finance Company’s financials are very good with a strong growth trajectory. “We believe the post moratorium NPAs could spook the investors in the coming quarters,” he said. Ramachandran advised investors to subscribe only for listing gains and wait for lower levels to accumulate stock from a long term perspective.
Investors can make bids for a minimum of 28 equity shares and in multiples of 28 shares thereafter. Up to 50 per cent of the issue will be reserved for Qualified Institutional Buyers (QIBs), 35 per cent for the retail category, and 15 per cent for the non-institutional category. Axis Capital Ltd, Credit Suisse Securities (India) Pvt Ltd, ICICI Securities Ltd, and Kotak Mahindra Capital Company Ltd are the book running lead managers to the issue. The registrar to the issue is KFin Technologies Pvt Ltd. Home First Finance Company is planning to utilize the net proceeds from the issue towards augmenting its capital base to meet future capital requirements, arising out of the growth of our business and assets. The shares are proposed to be listed on BSE and NSE.