The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Home First Finance IPO– 10 yr old company promoted by private equity funds.
Business — In the affordable housing segment in 11 states with 70 branches. 80% business from 4 states including 40% from Gujarat only
Offer purpose — Offer for sale (1153cr) including fresh issue of 265 cr. for expansion and general purposes
Key domains – Affordable housing finance for construction , loans for purchasing commercial property and loans against property to both salaried and small business owners/self-employed customers
Risks —
Consistently need to remain in limelight in highly competitive industry, Key financial metrics are not great as of now
With focus on middle class and recent Covid impact , NPA will always be struggle for few quarters
Strength
Focus on growing affordable housing category for middle income and low income category which is not serviced by many big banks
Company use technology to its advantage and do fast processing of loans
Average ticket size is 10 lacs approximately which makes it target highly growing category of loans
Future
Various government initiatives such as housing for all, amongst others are likely to offer exciting growth opportunities in the coming years.
Last three years CAGR is 60% plus although on smaller base shows future seems bright if it remains on track
Valuations
In almost all aspects except PE, Better listed options available
Should we apply?
People can avoid or subscribe only for listing gains
Recommended to sell if getting gains on listing day
One can wait to enter at low prices for investment purposes or choose peers for investment purpose during corrections
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Angel Broking IPO crisp summary –Listed with loss as shared
Happiest Minds IPO crisp summary –Listed with substantial gains as shared
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