Last updated: 21 Jan, 2021 | 10:27 am
Home First Finance Company is set to raise up to ₹1,154 crore via IPO which opened today for subscription. Here are the details:
About Home First Finance
About the issue
At the higher end of the price band at ₹518, Home First Finance is valued at 3.6 times its fully diluted post issue book value of ₹143.4 per share. This is lower than listed peer Aavaas Financiers (at 6.9 times P/B). The issue is priced at 54.8% premium to what Warburg Pincus had paid in October for its preferential allotment. This was because Warburg was allotted shares at a distressed valuation amid a lot of uncertainty caused by the pandemic. The valuations seem justified given the company’s growth outlook and return ratios. We remain positive on the long-term prospects of the issue.