IPO

Third IPO in 2021

There is an ongoing trend of IPO’s in 2021. First, IRFC then Indigo paints and now HFFC. Let’s talk about the HFFC IPO event happening today in this blog. HFFC or “Home First Finance Company” is basically a financial company that provides Home loans, Financial products and Consultancy. Here are some of it’s details:

– It was founded in 2010

– It has presence in 60+ cities within India

– It has 1000+ employees

– It has sanctioned 50000+ loans in urban cities

 

DETAILS OF THE IPO

 

IPO Opening Date IPO Closing Date Issue Type Face Value IPO Price Market Lot Min Order Quantity Listing At
Jan 21, 2021 Jan 25, 2021 Book Built Issue IPO ₹2 per equity share ₹517 to ₹518 per equity share 28 Shares 28 Shares BSE, NSE

 

SWOT ANALYSIS

 

MAJOR POINTS TO KEEP IN MIND BEFORE THE IPO

 

  • It’s a technology-driven and urban focused company.
  • If you check its clientele, the company substantially caters to low & middle-income salaried people. These people usually fall in the salary range of ₹15000 to ₹20000. Since these are salaried people, the major concern of non-repayment and thereby incurring a loss is considerably reduced here.
  • There is a lot of demand getting generated for affordable housing due to immigration and therefore the company is concentrating on towns and big cities.
  • Hffc intends to utilize the proceeds for lending to the end-users.
  • Present, HFFC is operating in the top 60 cities & mostly in industrialized states like Gujrat, Maharashtra, Andhra Pradesh, Telangana, Uttar Pradesh & Madhya Pradesh.
  • Manoj Viswanathan CEO of HFFC told Ashish Verma on CNBC Awaaz that “Growth in the affordable housing sector is very good. The Demand in the pandemic and after is also good”. He also mentioned that “as per the speed they’re growing, the funds raised through this IPO should be deployed within the next 18 to twenty months.

Happy Investing!

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