Home First Finance shares zoomed 19.45%

The basis of allotment for ₹1,153 crores initial public offering (IPO) of Warburg Pincus-backed, Home First Finance Company (HFFC) which saw 26.66 times subscription, is scheduled to make share market debut on Wednesday. The mortgage financier’s IPO clocked in a massive response from investors until the last day of subscription — the issue was subscribed 27 times the offer value.

The issue had received bids for 41.64 crore shares against 1.56 crore shares on offer. The shares were already seen commanding a strong premium over the IPO price in the grey market today. The public issue garnered a decent response in the grey market. The shares were commanding a premium of ₹60-70 over the set price band of ₹517-₹518 per share.

While the grey market is not an official measure of the market premium, it is a fair indicator of demand for the shares in the market. Home First Finance Company shares were quoting a grey market premium of ₹140 or 27% over the issue price to trade at ₹658 apiece on Tuesday.

On Wednesday, the shares were trading with ₹110 grey market premium. AR Ramachandran, Co-founder & Trainer, Tips2Trade said that given the current positive sentiment since the Union Budget 2021, Home First Finance Company should open on a strong note on listing day.

The company’s ₹1,154-crore initial public offering (IPO), which ran from January 21-January 25, saw a strong response from investors as the issue was subscribed 27 times than the original size. While the response from retail investors was strong, the IPO drew a stronger response from high net-worth individuals and qualified institutional buyers.

This was the third initial public offer this year. The listing is scheduled for February 3rd, and equity shares will be listed on both the exchanges — BSE and NSE.

The company plans to utilise the net proceeds towards augmenting its capital base to meet its future capital requirements. Axis Capital Limited, Credit Suisse Securities (India) Private Limited, ICICI Securities Limited and Kotak Mahindra Capital Company are the managers to the offer.

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