Home First Finance shares see profit-booking, close with just 1.8% gains on listing day

IPO

Home First traded with more than 2.45 crore shares on the NSE and 20.26 lakh shares on the BSE.

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Bengaluru-based Home First Finance stock price witnessed profit-booking in the afternoon trade on February 3 – its listing day as it closed with just 1.8 percent gains despite positive market conditions. The stock wiped out 17.5 percent gains from its intraday high.

Shares ended at Rs 527.40 on the BSE, against the issue price of Rs 518, after hitting an intraday high of Rs 639.50 and low of Rs 521.65. But it lost 13.84 percent from its opening price of Rs 612.15.

On the National Stock Exchange, the stock gained 1.8 percent to close at Rs 527.55, while the opening price was Rs 618.80.

In terms of volumes, Home First traded with more than 2.45 crore shares on the NSE and 20.26 lakh shares on the BSE.

Home First Finance Company India, a technology-driven affordable housing finance company, raised Rs 1,154 crore through its public issue during January 21-25 and will use net fresh issue proceeds (of total Rs 265 crore) for augmenting capital base to meet future requirements.

Home First Finance share price jumps 23% intraday on debut: What should investors do now?

The company is primarily engaged in the business of lending of housing loans to first-time homebuyers in low and middle-income groups. Its customers are typically salaried (73 percent of AUM) who work in small firms or self-employed (25 percent of AUM) who run small businesses.

On asset quality front, Home First has been able to manage its gross non-performing assets (NPA) and net NPA ratio below 1 percent in FY20. It has grown its assets under management (AUM) at a CAGR of 63 percent over FY18-20, one of the fastest amongst listed financials.