Mumbai (Maharashtra) [India], Mar 3 : Affordable housing financier Home First Finance Company has got approval from the Securities and Exchange Board of India (SEBI) to raise Rs 1,500 crore through the initial public offering (IPO) route.
The company had filed draft red herring prospectus (DRHP) with the market regulator on November 28 last year.
The IPO consists of a fresh issue aggregating up to Rs 400 crore and an offer for sale of up to Rs 1,100 crore by the selling shareholders.
The equity shares of face value Rs 2 each will be listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
True North Fund V LLP, Aether (Mauritius), Bessemer India Capital Holdings II Ltd, P S Jayakumar, Manoj Vishwanathan and Bhaskar Chaudhry are the promoter and investor selling shareholders.
Besides, the DRHP states that the company may consider a pre-IPO placement of up to Rs 160 crore in consultation with book running lead managers. If the pre-IPO placement is undertaken, the amount will be reduced from the fresh issue.
The company intends to utilise net proceeds towards augmenting its capital base to meet its future capital requirements arising out of growth in business and assets and to receive benefits of listing equity shares on stock exchanges.
Axis Capital Limited, Credit Suisse Securities (India), ICICI Securities and Kotak Mahindra Capital have been appointed as book running lead managers (BRLMs) for the share sale.
HomeFirst has been the first port of call for over 30,000 customers, most of them falling under Pradhan Mantri Awas Yojana (PMAY) across urbsed regions of Gujarat, Maharashtra, Karnataka and Tamil Nadu which accounts for 79 per cent of the affordable housing market.
The company's loans have an average ticket size of Rs 10.4 lakh, mainly accounting for the purchase and construction of homes.
( With inputs from ANI )