Home First Finance Company (HFFC) on November 29 filed a draft red herring prospectus with the Securities and Exchange Board of India (SEBI) for its proposed initial public offering (IPO).
The housing finance company is expected to raise Rs 1,500 crore through the public issue.
The IPO comprises a fresh issue of Rs 400 crore and Rs 1,100-crore offer for sale by promoters and investors.
The offer for sale consists of Rs 498.4 crore worth of shares by True North Fund V LLP, Rs 332.2 crore worth of shares by Aether (Mauritius) (both are promoter selling shareholders), and Rs 176.4 crore shares by Bessemer India Capital Holdings II, Rs 56 crore shares by PS Jayakumar, Rs 35.9 crore shares by Manoj Viswanathan and Rs 1.1 crore shares by Bhaskar Chaudhry.
The prospectus also says that the company may consider a pre-IPO placement of up to Rs 160 crore in consultation with merchant bankers. If the pre-IPO placement is undertaken, the amount will be reduced from the fresh issue.
The company intends to utilise the net proceeds from the fresh issue for augmenting its capital base to meet requirements arising out of the growth of business and assets.
Founded by Jaithirth Rao, PS Jayakumar and Manoj Viswanathan, HFFC commenced operations in August 2010.
Its gross loan assets for the six months period ended September 2019 stood at Rs 3,113.4 crore, rising 63 percent over the same period last year. Disbursements increased 23.6 percent YoY to Rs 885.75 crore.
Profit during April-September period increased 220 percent year-on-year to Rs 36.74 crore.
As of September 2019, the company had a network of 65 branches covering more than 60 districts in 11 states and a union territory.
The book running lead managers to the issue are Axis Capital, Credit Suisse Securities (India), ICICI Securities and Kotak Mahindra Capital Company. Karvy Fintech is the registrar to the issue.
Equity shares are proposed to be listed on the BSE and National Stock Exchange.