Home First Finance slips 7% on huge block deals; promoters' likely seller

Shares of Home First Finance Company India slipped 7 per cent to Rs 978 on the BSE in Monday’s intra-day trade after nearly 19 million equity shares changed hands on the counter via block deals on Monday.

 

At 09:15 AM, as many as 18.79 million equity shares, representing 21 per cent of the total equity of HomeFirst, changed hands on the BSE, exchange data showed. The names of the buyers and sellers could not be ascertained immediately. According to reports, the company's promoters were likely to sell thier stake in Home First via block deals on Monday.

 

HomeFirst’s promoters have initiated a block deal to offload up to a 14.7 per cent stake in the company, valued at approximately Rs 1,267 crore; CNBC-TV18 reported quoting sources. The likely sellers are True North Fund V LLP (Warburg Pincus), Orange Clove Investments B V, and Aether (Mauritius).

 

At 09:38 AM, the stock was trading 5.5 per cent lower at Rs 994.50, as compared to 0.28 per cent decline in the BSE Sensex. The stock of the housing finance company has corrected 29 per cent from its 52-week high level of Rs 1,383.05 touched on October 9, 2024.

 

HomeFirst is a technology driven affordable housing finance company that targets first time home buyers in low and middle-income groups. It primarily offers housing loans for the purchase or construction of homes. The company has deep penetration in the large housing finance markets with a network of 142 branches with presence in 13 States / UT in India, with a significant presence in emerging urban regions in the states of Gujarat, Maharashtra, Andhra Pradesh, Telangana, Karnataka and Tamil Nadu. Apart from that, the company is also increasing its presence in emerging affordable housing finance markets of Uttar Pradesh, Madhya Pradesh and Rajasthan.

 

During the previous quarter, the Ministry of Housing and Urban Affairs released the initial operational guidelines for Pradhan Mantri Awas Yojana - Urban 2.0 (PMAY-U 2.0). This scheme aims to address the housing needs of 10 million economically weaker sections (EWS), low-income groups (LIG), and middle-income groups (MIG) individuals seeking affordable housing. This revamped scheme will provide an impetus to the growth of the affordable housing segment, HomeFirst said.

 

HomeFirst has invested in building a franchise, which positions it well to capitalise on the strong growth opportunity in affordable housing finance. The company continues to expand its distribution network in a contiguous manner, covering Tier I and II cities within its existing states.  The company’s asset quality is likely to strengthen, with credit costs expected to remain benign over FY25-FY26 as the company prioritises early bucket collections, thus driving improvement in asset quality, Motilal Oswal Financial Services said in the company's Q2 result update.