HFFC Limited
Mainboard₹1,154 Cr issue
+18.18%
Listing gain over issue price
Issue size
₹1,154 Cr
1 lot at cut-off
₹14,504
Lot size
28shares
Open
21 Jan 2021
Close
25 Jan 2021
Allotment
29 Jan 2021
Listing
03 Feb 2021
Listing performance
Issue price
₹518
Listed at
₹612.15
Listing-day close
₹527.55
Latest price
₹1,002
Close on 23 Oct 2026
Listing gain
+18.18%
Return since issue
+93.44%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 21 Jan 2021 – 25 Jan 2021
- Listing date
- 03 Feb 2021
- Face value
- ₹2 per share
- Issue price
- ₹518 per share
- Lot size
- 28 shares
- Total issue size
- ₹1,154 Cr
- Market cap at offer price
- ₹4,527 Cr
- Promoter holding
- 52.85% → 33.70% pre-issue → post-issue
- ISIN
- INE481N01025
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Axis Capital Ltd.
- Registered office
- 511, Acme Plaza, Andheri Kurla Road, Andheri East, Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 66,81,766 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 28 shares per lot, in multiples, at ₹518
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 28 | ₹14,504 |
| Retail (max) | 13 | 364 | ₹1,88,552 |
| S-HNI (min) | 14 | 392 | ₹2,03,056 |
| S-HNI (max) | 68 | 1,904 | ₹9,86,272 |
| B-HNI (min) | 69 | 1,932 | ₹10,00,776 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
66,81,766
Anchor portion
₹346 Cr
at ₹518 per share
Valuation and performance
Valuation at offer price
₹518 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹4,527 Cr |
About HFFC Limited
Home First Finance Company India Limited is an incorporated as a private limited company in February 2010 and converted to a public limited company in March 2018. The company is a technology-driven affordable housing finance company that targets first-time home buyers in low and middle-income groups. It primarily offers customers housing loans for the purchase or construction of homes, which comprised 92.1% of its Gross Loan Assets as of September 30, 2020. The company's Gross Loan Assets have grown at a CAGR of 63.4% between financial year 2018 and financial year 2020, increasing from ₹13,559.32 million as of March 31, 2018 to ₹37,300.12 million as of September 30, 2020. The company operates through 70 branches across India, with significant concentration in Gujarat and Maharashtra.
Company Analysis
from RHPHome First Finance is a technology-driven affordable housing finance company targeting first-time home buyers in low and middle-income groups, primarily offering housing loans in India.
Home First Finance Company India Limited is an incorporated as a private limited company in February 2010 and converted to a public limited company in March 2018. The company is a technology-driven affordable housing finance company that targets first-time home buyers in low and middle-income groups. It primarily offers customers housing loans for the purchase or construction of homes, which comprised 92.1% of its Gross Loan Assets as of September 30, 2020. The company's Gross Loan Assets have grown at a CAGR of 63.4% between financial year 2018 and financial year 2020, increasing from ₹13,559.32 million as of March 31, 2018 to ₹37,300.12 million as of September 30, 2020. The company operates through 70 branches across India, with significant concentration in Gujarat and Maharashtra.
Affordable Housing FinanceFinancial ServicesBanking and Finance
Objects of the Issue
- Augmenting the capital base ₹2,650 million p.22
- Augment capital base to maintain minimum capital adequacy ratio and meet future capital requirements ₹2,552.44 million (Net Proceeds) p.88
- Funding capex for expansion of branch network and technology infrastructure
- Not explicitly stated as 'Objects of the Offer' in this section
Issue Structure
- Total Issue
- ₹11,537.19 million
- Fresh Issue
- ₹2,650 million (5,115,830 Equity Shares)
- Offer for Sale
- ₹8,887.19 million (17,156,726 Equity Shares)
- Price Band
- ₹517 to ₹518 per Equity Share
- Lot Size
- 28 Equity Shares and multiples thereof
- Face Value
- ₹2 per Equity Share
Business Model
The company generates revenue primarily through interest income on housing loans, with 92.1% of Gross Loan Assets comprising housing loans as of September 30, 2020. The company also earns revenue from processing fees, assignment of loans to banks and other financial institutions, and other ancillary services. The company funds its operations through various sources including term loans, working capital facilities, proceeds from direct assignment of loans, issuance of non-convertible debentures (NCDs), and refinancing from the National Housing Bank (NHB).
Business Segments
Housing loans for the purchase or construction of homes
Provides home loans for the purchase or construction of homes
Loans for purchase or construction of homes for first-time homebuyers in low and middle-income groups
Loans against property collateral
Loans to developers for housing projects
Loans for purchase of commercial property
Loans for purchase or construction of homes
Loans secured by property mortgages
Loans to builders for residential construction
Loans for purchase of commercial property
Provides loans for residential property purchase
Provides loans against residential and commercial property as collateral
Provides loans for purchase of commercial properties
Provides construction finance to developers
Provides housing loans for purchase or construction of homes to first-time homebuyers
Provides loans against property collateral
Provides commercial real estate financing
Provides developer finance and construction financing
Provides housing loans to customers
SWOT Analysis
Strengths
- • Rapid historical asset growth and strong market presence(p.21)
- • Technology-driven platform and digital capabilities(p.21)
- • Focus on underserved affordable housing segment(p.21)
- • Strong profitability growth trajectory(p.36)
- • Housing finance sector growth driven by government initiatives(p.44)
- • Strong capital adequacy position relative to regulatory minimums(p.89)
- • Technology-driven scalable platform with digital capabilities(p.151)
- • Rapid growth in Gross Loan Assets and disbursements(p.149)
- • Low Stage 3 Loan Assets (asset quality) with high salaried customer base(p.149)
- • Strong capital ratings and diversified funding sources(p.153)
- • Geographic presence in high-growth affordable housing markets(p.149)
- • Experienced management with proven track record(p.153)
- • Centralized data science-backed underwriting reducing turnaround times(p.152)
- • Highest NHB refinance share among peers(p.149)
- • Strong liquidity management and access to diverse funding sources during COVID-19(p.156)
- • Strategic equity investment by leading global PE firm Warburg Pincus(p.180)
- • Accelerated digital transformation and technology adoption across operations(p.156)
- • Broad geographic presence across high-growth housing finance markets(p.158)
- • Strong capital adequacy well above regulatory requirements(p.164)
- • High-quality credit ratings from multiple agencies(p.164)
- • Strong strategic partnerships with fintech and financial platforms(p.157)
- • Customer-centric business model with strong net promoter scores(p.160)
- • Strong retail lending focus with 98.1% of gross loan assets in retail segment(p.210)
- • Rapid asset growth with gross loan assets increasing from Rs. 13,559.32 million (FY2018) to Rs. 37,300.12 million (H1 FY2021)(p.210)
- • Strong market presence across 70 branches spanning 60 districts in India(p.223)
- • Diversified funding sources from 17 banks and financial institutions(p.209)
- • Low stage 3 loan assets ratio of 0.7% indicating good asset quality(p.215)
- • Significant improvement in NPS from 47% (Jan-Mar 2018) to 59% (Sep-Oct 2020)(p.222)
- • Strong asset growth trajectory with CAGR of 63.4% in Gross Loan Assets between FY2018-FY2020(p.299)
- • Technology-driven operations with proprietary ML models and integrated systems for efficient lending(p.299)
- • Highest share of NHB refinance (26%) among peers in borrowing mix(p.299)
- • Improved credit ratings from CARE A- to CARE A+ and ICRA A+ (stable)(p.299)
- • Strong market presence in 11 states/UTs accounting for ~79% of affordable housing finance market(p.299)
- • High percentage of new-to-credit customers (32.8%) indicating market penetration opportunity(p.299)
- • Diversified sourcing channels including developers, contractors, architects and employee referrals(p.299)
- • Scalable technology-driven operating model enabling expansion with lower incremental costs(p.303)
- • Diversified funding sources reducing dependence on any single funding type(p.302)
- • Strong capital adequacy ratio providing cushion for growth(p.320)
- • Low credit-impaired assets relative to total loan portfolio(p.303)
Weaknesses
- • Geographic concentration risk in two states(p.35)
- • Negative cash flows from operations in past years(p.30)
- • Rising non-performing asset levels as portfolio matures(p.31)
- • High employee attrition rates(p.40)
- • Restricted leverage capacity relative to borrowing limits(p.28)
- • Promoter control limits minority shareholder influence(p.43)
- • Restrictive covenants on shareholder dilution limit capital raising flexibility(p.43)
- • Company receives no proceeds from Offer for Sale(p.43)
- • High dependence on specific borrowing sources (banks and NHB)(p.155)
- • Significant operational expenses relative to asset size(p.150)
- • Rising Stage 3 Loan Assets during COVID-19 period(p.155)
- • Higher leverage relative to equity(p.153)
- • Limited branch network relative to larger competitors(p.154)
- • Concentration of gross loan assets in two states (Gujarat and Maharashtra)(p.158)
- • High proportion of loans to new-to-credit customers creating concentration risk(p.160)
- • Significant portion of customer base dependent on informal income sources(p.160)
- • Limited scale relative to major competitors in housing finance sector(p.167)
- • Young organization with recent management changes and organizational restructuring(p.194)
- • Dependence on portfolio expansion for growth with inherent credit quality risks(p.160)
- • High debt-to-equity ratio of 2.67x, indicating significant leverage(p.209)
- • Concentrated loan portfolio with 39.0% of gross loan assets in Gujarat state(p.212)
- • Rising stage 2 loan assets (30+ DPD) at 1.1% of gross loan assets suggesting credit deterioration(p.215)
- • Elevated bounce rates in Q2 FY2021 at 28.3% indicating collection challenges(p.215)
- • High leverage with net debt-to-equity ratio of 2.47 as of September 30, 2020(p.265)
- • Concentrated funding sources with high dependence on bank borrowings and NHB refinance(p.299)
- • Lower profitability metrics with cost-to-income ratio of 34.9% for H1 FY2021 and 45.8% for FY2020(p.300)
- • Declining disbursement growth of -66.6% in H1 FY2021 compared to H1 FY2020(p.300)
- • Rising Stage 3 loan assets indicating credit quality deterioration post-COVID(p.300)
- • Increased impairment provisions due to COVID-19 pandemic impact(p.272)
- • Significant portion of recent loan portfolio exposes company to delinquency risk emerging 18-36 months post-disbursement(p.302)
- • Rising impairment provisioning burden due to COVID-19 impact(p.314)
- • Collateral value decline risk from falling real estate prices(p.303)
- • Significant reliance on external borrowing to fund growth(p.302)
Opportunities
- • Expansion of affordable housing segment driven by government policies(p.21)
- • Growing housing finance market with medium-term growth prospects(p.21)
- • Geographic expansion strategy within India(p.36)
- • Priority sector lending incentives for housing finance(p.39)
- • Expected sustained growth in Indian housing finance sector(p.44)
- • Government stimulus and policy support for housing sector(p.100)
- • Expected economic recovery post-COVID with GDP growth acceleration(p.99)
- • Government focus on affordable housing through PMAY(p.102)
- • Rising urbanization and nuclearization creating housing demand(p.109)
- • Favorable demographics with large young population(p.101)
- • Increasing financial penetration in non-metro cities(p.101)
- • Low mortgage penetration offering significant expansion potential(p.105)
- • Expansion into tier-II and tier-III cities(p.154)
- • Tax incentives and regulatory support for housing sector(p.112)
- • Expansion into underserved affordable housing finance segment with government support(p.174)
- • Geographic expansion into under-penetrated states and districts(p.159)
- • Growth in digital lending and partnerships with fintech platforms(p.157)
- • Expansion through strategic alliances with construction companies and material suppliers(p.157)
- • Growth in loans against property and developer finance segments(p.157)
- • Expansion into new markets with 41.8% of new-to-credit borrowers indicating untapped customer segments(p.210)
- • Growing housing loan market with housing loans at 92.1% of retail portfolio and average ticket size stable at Rs. 1.02 million(p.218)
- • Market share gains demonstrated across key cities (Jaipur: 0.1% to 2.3%, Ahmedabad: 1.7% to 2.7% from Q1 FY18 to Q4 FY20)(p.223)
- • Increased product diversification with loans against property growing from Rs. 287.40 million (FY2018) to Rs. 1,897.96 million (H1 FY2021)(p.210)
- • Growth in mass market segments with 26.0% of portfolio in Economically Weaker Section and 51.6% in Low Income Group(p.213)
- • Expansion into underserved low and middle-income group segments seeking first-time homeownership(p.299)
- • Geographic expansion with strategic contiguous growth model to new underserved districts(p.299)
- • Cross-selling opportunities with diverse customer base and low product concentration(p.299)
- • Further technology innovation and digital adoption to drive operational efficiency(p.299)
- • Government support for affordable housing through schemes like CLSS and preferential policies(p.261)
- • Increase in housing loan demand from higher incomes and financial incentives(p.303)
- • Benefit from government affordable housing schemes like Pradhan Mantri Awas Yojana(p.303)
- • Expansion of reach through digital and internet-based lending platforms(p.303)
- • Economic growth and GDP increases driving housing demand(p.303)
Threats
- • COVID-19 pandemic impact on business operations and customer defaults(p.27)
- • Customer default risk from low and middle-income borrowers(p.27)
- • Rising market competition and pricing pressure(p.36)
- • Dependence on access to debt capital markets and refinancing(p.28)
- • Interest rate volatility and spread compression risk(p.33)
- • Regulatory changes and increased compliance burden(p.38)
- • Real estate collateral value volatility and recovery challenges(p.35)
- • Uncertainty around sustainability of housing finance industry growth(p.44)
- • Economic downturn and external shocks impact business performance(p.44)
- • Regulatory changes and uncertainty in tax and compliance framework(p.44)
- • Pandemic and natural disasters pose operational and economic risks(p.44)
- • Foreign exchange volatility reduces returns for international investors(p.46)
- • Foreign investment restrictions limit investor base and share liquidity(p.45)
- • Economic slowdown and COVID-19 pandemic impact on borrower income(p.155)
- • Rising non-performing assets due to economic stress(p.155)
- • Intense competition from large banks and other HFCs(p.109)
- • Liquidity stress in the financial sector post IL&FS default(p.109)
- • Rising interest rates increasing cost of borrowings(p.138)
- • Regulatory changes affecting lending standards(p.106)
- • High proportion of self-employed and informal sector borrowers increasing credit risk(p.106)
- • Heightened credit risk from COVID-19 pandemic impact on borrower incomes(p.157)
- • Regulatory changes in housing finance regulations and capital requirements(p.169)
- • Heightened competitive intensity from banks and other housing finance companies(p.167)
- • Dependence on stable interest rates and refinancing access for cost of funds(p.156)
- • Exposure to real estate and construction sector cyclicality and slowdown risks(p.167)
- • Regulatory risk from potential changes to loan-to-value ratios and lending limits(p.172)
- • COVID-19 pandemic impact on asset quality and collections with emphasis of matter in audit reports(p.227)
- • Collection efficiency deterioration in Q1 FY2021 at 71.8% from normal levels of ~94-99% in subsequent months, indicating temporary but significant disruption(p.224)
- • Rising impairment losses on financial instruments increasing from Rs. 28.74 million (FY2018) to Rs. 164.09 million (H1 FY2021)(p.230)
- • Sector-wide housing finance competition and interest rate competition evident from declining spreads and average cost of borrowings at 4.3%(p.208)
- • Macroeconomic headwinds and reduced consumer purchasing power affecting housing demand(p.272)
- • Increased credit losses and loan portfolio deterioration during pandemic and post-recovery period(p.272)
- • Rising interest rates affecting affordability for low and middle-income borrowers(p.300)
- • Increasing competitive pressure from established banks and housing finance companies(p.299)
- • Regulatory tightening and compliance requirements under NHB and RBI guidelines(p.265)
- • Funding constraints and rising cost of borrowings affecting net interest margins(p.300)
- • Customer defaults and collection challenges in self-employed segment(p.268)
- • Intense competition from HFCs and NBFCs with better funding access and brand recognition(p.303)
- • Economic slowdown adversely affecting borrower repayment capacity(p.303)
- • Regulatory changes requiring higher capital adequacy or reduced leverage limits(p.303)
- • Interest rate volatility affecting net interest spread and borrowing costs(p.302)
- • COVID-19 pandemic causing loan disbursement slowdown and elevated credit risk(p.301)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| True North Fund V LLP | Promoter | 31.74% | — |
| Aether (Mauritius) Limited | Promoter | 21.11% | — |
| TN V LLP | Promoter | 31.74% | 20.26% |
| Aether | Promoter | 21.11% | 13.44% |
| True North Fund V LLP | Promoter | — | — |
| Aether (Mauritius) Limited | Promoter | — | — |
| Bessemer and Orange Clove Investments B.V. (Warburg Pincus affiliate) | Investor | — | — |
| True North Fund V LLP | Promoter | 31.74% | — |
| Aether (Mauritius) Limited | Promoter | 21.11% | — |
| True North Value Fund V LLP (Formerly known as India Value Fund V LLP) | Promoter/Promoter Group | 46.04% | — |
| Aether (Mauritius) Limited | Promoter/Promoter Group | 30.61% | — |
| Bessemer India Capital Holdings II Limited | Promoter/Promoter Group | 16.26% | — |
| TN V LLP | Promoter Selling Shareholder | — | — |
| Aether | Promoter Selling Shareholder | — | — |
| True North Fund V LLP | Promoter Selling Shareholder | — | — |
| Aether (Mauritius) Limited | Promoter Selling Shareholder | — | — |
| Bessemer India Capital Holdings II Ltd. | Investor Selling Shareholder | — | — |
| P. S. Jayakumar | Individual Selling Shareholder | — | — |
| Manoj Viswanathan | Individual Selling Shareholder | — | — |
Leadership
Manoj Viswanathan · Managing Director and Chief Executive Officer
Deepak Satwalekar · Chairman and Independent Director
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
HFFC Limited IPO FAQs
What is the lot size of HFFC Limited IPO?
The minimum lot size of HFFC Limited IPO is 28 shares. One lot costs ₹14,504 at the cut-off price.
When does HFFC Limited IPO open and close?
HFFC Limited IPO opened for subscription on 21 Jan 2021 and closed on 25 Jan 2021.
What is the listing date of HFFC Limited IPO?
HFFC Limited IPO listed on 03 Feb 2021.