Home First Finance Company (HFFC) Limited Unlisted Shares

About Home First Finance

(i) Founded in the year 2010, Home First Finance is the technology-driven home finance company that typically targets first time home buyers in the low and middle-income groups. 91% of the total loan book is given to purchase or construct a house.

(ii) Home First Finance targets salaried and self-employed customers and these two comprises of 72.6% and 24.6% of the loan book, respectively. As on 30.09.2019, it has 37,086 active loan accounts with 3133 Cr of Gross loan book. The average ticket size of the loan is 10.2 Lakh.

(iii) They also offer other types of loans comprising loans against property, developer finance loans, and loans for the purchase of commercial property; however, it comprised only 4.7%, 2.8%, and 1.1% of total Gross Loan Assets.

Presence

As on 30.09.2019, Home First Finance has a network of 65 branches covering over 60 districts in 11 states and a union territory in India, with a significant presence in urbanized regions in the states of Gujarat, Maharashtra, Karnataka, and Tamil Nadu.

The company over the years has expanded into those territories where there is a demand for home buyers. Before setting up a new branch in a district, they conduct an in-depth study of the micro markets around the branch to assess the potential demand for housing finance and target regions with increasing urbanization and housing demand.

State	Branches	districts	Loan
Gujarat	19	10	40.50%
Maharashtra	13	13	24.60%
Tamilnadu	9	8	9.20%
Karnataka	4	1	8.80%
Rajasthan	6	4	4.50%
Telangana	3	2	4%
Madhya Pradesh	5	3	3.20%
Uttar Pradesh	1	3	2.40%
NCR	1	10	1.20%
Chhattisgarh	1	3	0.90%
Andhra Pradesh	3	3	0.80%

Underwriting and Risk Management

The company has leveraged technology to process the loan and to manage the risk. They have developed a paperless process of the loan disbursement and they have a dedicated sales team who goes to buyer home and ensure minimal disruption to customer daily routine while disbursement of the loans.

For underwriting, Home First Finance is utilizing proprietary machine learning customer scoring models for a centralized credit underwriting process, which has led to consistent and accurate credit evaluation with quick turnaround time.

They digitally capture over 100 data points of a customer in addition to credit bureau data, observations of the front end teams, and feedback from the underwriting and management teams. They capture and store all the data on a cloud services platform. They have entered into arrangements with third-party service providers through whom they obtain additional information such as fraud-related data, banking, investment and taxation related data, and vehicle ownership of customers, which enables Home First Finance with underwriting and to identify areas of concern and take quick and accurate decisions.

Borrowing Profile

To disburse loans one needs money. Let us see how Home First Finance has borrowed money over the years.

As on 30.09.2019, the company has outstanding borrowing of 2295 Cr. They mostly borrow from the private banks, public banks, NHB (National Housing Board), a subsidiary of RBI, and through assignment transactions. 37% of borrowing is from NHB.

Credit rating is the most important parameter which all analysts should look carefully at. The highest credit rating means the company is serving its principal and interest on time. The highest credit rating is not only good for the lending institutions but also for shareholders of the company.

As on 30.09.2019, Home First Finance currently has an ‘A+ (stable) rating from ICRA Limited.

Founders and Investors

The Company was founded by Jaithirth Rao, P. S. Jayakumar, and Manoj Viswanathan in August 2010. The company is managed by professionals and the Promoters are True North Fund V LLP and Aether (Mauritius) Limited. Further, Bessemer has also invested in the Company.

IPO News

The company has already filed for an IPO and got the approval from SEBI in the month of March-2020.

Marketing Video of Home First Home Finance

Home First Finance Company (HFFC) Limited Unlisted Shares Details:

Total Available Shares:	1000
Face Value:	₹ 2 Per Equity Share
Lot Size:	100 Shares
Current Unlisted Share Price:	₹ Best in Industry Per Equity Share

Promoters And Management:

1. Deepak Satwalekar is the Chairman and Independent Director of the Company. He holds a bachelor’s degree in mechanical engineering from the Indian Institute of Technology, Bombay, and a master’s degree in business administration from the American University. Previously, he was associated with Housing Development Finance Corporation Limited as a director and HDFC Standard Life Insurance Company Limited as the managing director and chief executive officer. 2. Sakti Prasad Ghosh is an Independent Director of the Company. He holds a master’s degree in commerce from the University of Calcutta, a certificate in financial management from the University of Mumbai (earlier known as the University of Bombay), and a certificate in industrial finance from the Indian Institute of Bankers. He has over 39 years of experience in banking and financial services institutions. 3. Sujatha Venkatramanan is an Independent Director of the Company. She holds a bachelor’s degree in economics (honors) from the University of Delhi and a master’s degree in business administration from the University of Delhi. She has over 24 years of experience in retail banking functions particularly credit risk including credit risk policy, analytics, and operations, mergers and acquisitions due diligence, portfolio management, risk advisory, project monitoring, product development, business development, and marketing.

Shareholding Pattern:

Name of the shareholder	Number of Equity Shares	% of Equity Shares
TN V LLP	35997070	42.8
Aether	23998045	28.54
Bessemer	12744235	15.15
P. S. Jayakumar	4037775	4.8
Manoj Viswanathan	2363580	2.81

Financials of Home First Finance Company (HFFC) Limited Unlisted Shares:

(Fig. in Crores)

Particulars (in Crores)	6MFY20	2019	2018	2017
Balance Sheet
Loan Book	3218	2134	1307	789
Borrowings	2295	1925	1019	663
Share Capital	156.6	126.68	103.23	103.21
FV	2	10	10	10
Net-Worth	889	523	325	306
Book Value	113	41	31	30
P/L Statement
Interest Income	160	231	129	87
Other Income	33	39	5.2	4.5
Interest Expended	91	126	65	54
Employee Expense	30	42	24	14
PBT	50	65	24	10
PAT	36	45	15	6
EPS	4.60	5.75	1.92	0.77
Key Metrics of HFC
Loan Book	3218	2134	1307	789
NIM	2.14%	4.92%	4.90%	4.18%
GNPA	NA	2.50%	2.10%	1.80%
CRAR	47.60%	38.50%	43.00%	68.50%

DRHP For Home First Finance

Frequently Asked Questions:

Please find below the procedure for buying Home First Finance Company (HFFC) Limited Unlisted Shares at UnlistedZone.

1. You confirm booking of Home First Finance Company (HFFC) Limited Unlisted Shares with us at a trading price.
2. You provide your client master report (ask the broker if not available) along with PAN Card and Cancelled Cheque in case you are not transferring funds from the bank account as mentioned in the CMR Copy. These are KYC documents required as per SEBI regulations.
3. We will provide the bank details.
4. You need to transfer funds in that account.
5. Payment has to be done in RTGS/NEFT/IMPS CHEQUE TRANSFER. No CASH DEPOSIT.
6. Payment has to be done from the same account in which shares are to be credited.
7. We will transfer the shares in 24 hours if funds are credited before 2 pm.

Important Note: Please note that the lock-in period for selling Home First Finance Company (HFFC) Limited Unlisted Shares is 6 months after listing. Hence you can’t sell Home First Finance Company (HFFC) Limited Unlisted Shares which you bought in Pre-IPO for 6 months after its listing. i.e. You can sell it only after 6 months calculated from the listing date. For any queries, please contact us at sales@unlistedzone.com

Please find below the procedure for selling Home First Finance Company (HFFC) Limited Unlisted Shares at UnlistedZone.

1. We will confirm our buying price of Home First Finance Company (HFFC) Limited Unlisted Shares.
2. We will give you our client master report and you will transfer the Home First Finance Company (HFFC) Limited Unlisted Shares to our demat account.
3. We will ask for bank details of yours once the Home First Finance Company (HFFC) Limited Unlisted Shares are received in our demat account..
4. We will transfer the funds in your bank account within 24 hrs of receiving the Home First Finance Company (HFFC) Limited Unlisted Shares.
5. Payment will be made in RTGS / NEFT / CHEQUE TRANSFER/IMPS. No CASH DEPOSIT.
6. Payment will be given in the same account which is linked to demat account or you need to provide the cancelled cheque shows your name to verify. As per SEBI regulations, the transfer of funds in the third party account is not legal and our policy refrain us from doing so.

Note: The price at which we are buying the share is fixed for 3 days. If you cant sell your stock within 3 days, then the price of that day will be applicable when we receive shares in our demat.

Lock-in period of Home First Finance Company (HFFC) Limited Unlisted Shares depends upon category of investors.

1. Venture Capital Funds or Alternate Investment Fund of Category -I or II, or Foreign Venture Capital Investor - lock-in Period of 6 months from the date of acquisition of Home First Finance Company (HFFC) Limited Unlisted Shares.
2. Other Investors (include Retail, HNIs or Body Corporate) lock-in Period of 6 months from the date of listing of IPO of Home First Finance Company (HFFC) Limited Unlisted Shares.

This new SEBI rule was introduced in the month of August-2021, wherein the SEBI has reduced the lock-in period previously from 1 year to 6 months to encourage more and more funds to be invested in startups which are going to public or IPO in near future. Reduction of lock-in is seen as big step and after that many PMS funds are advising their clients to invest in Pre-IPO shares to get the benefit of early stage investment.

DIS - Delivery Instruction Slip is the way through which an investor can sell or transfer the Home First Finance Company (HFFC) Limited Unlisted Shares from his/her demat account to any other demat account. There are two Types of DIS Slip.

1. Offline-DIS - This is an offline mode of transfer of shares wherein the investors needs to fill DIS form and give it to their broker for transferring the shares. Following are the fields which are required to be filled.
- a. ISIN number of Home First Finance Company (HFFC) Limited Unlisted Shares.
- b. Name of Home First Finance Company (HFFC) Limited Unlisted Shares
- c. Quantity of Home First Finance Company (HFFC) Limited Unlisted Shares
- d. Cosideration Amount
- e. Target DP ID and Client ID
- f. Annexure
2. Online DIS - Some of the broker these days gives facility of transferring the Home First Finance Company (HFFC) Limited Unlisted Shares via online DIS. So, please check with your broker whether such facility is available or not. For example: Angel Broking proivdes the facility of Online-DIS from its platform. As an investor he/she simply needs to add a beneficiary into it and send the Home First Finance Company (HFFC) Limited Unlisted Shares by filling the details similar to Ofline-DIS.

Read our article to understand more about this. https://unlistedzone.com/how-do-i-sell-my-unlisted-shares/

In the last 4-5 years, the unlisted share market has become quite big and as a result of that, the ticket size has reduced from usual 5-10 Lac to 35-50k in today's scenario. So, via our UnlistedZone platform, if somebody wants to buy Home First Finance Company (HFFC) Limited Unlisted Shares then minimum investment would be 35-50k.

Yes, buying and selling of unlisted shares in India is 100% legal.

If you sell your shares within 2 years, then you will have to pay Short-term Capital gain on unlisted shares. Short-Term Capital Gain is added in your Income. So, as per individual tax slab you need to pay capital gain tax.

If you sell your shares after 2 years, then you will have to pay Long-term Capital gain on unlisted shares LTCG is 20% with indexation benefits.

Taxes will remain the same irrespective of listing of shares, if bought in unlisted market. Actually, to be eligible for taxes as per listed market, one has to pay STT on buying and selling of shares. But, if you buy in unlisted and sell in listed market, one pay STT only on selling so, taxes of listed market will not be applicable

If you buy Home First Finance Company (HFFC) Limited Unlisted Shares from UnlistedZone then these shares can checked in two ways. However, before we tell you the process of checking of shares, it is intimated that as per SEBI regulations, the shares can be transferred in demat account only.

Check credit of Home First Finance Company (HFFC) Limited Unlisted Shares Instantly?

1.You can download the NSDL or CDSL application from google play-store and check. If you want to check whether your stock broker is registered with NSDL or CDSL then check the following procedure.
By carefully examining the number format of Demat Account we can easily identify whether the stock broker is registered with CDSL or NSDL.
Demat Account = DP ID + Client ID. (16 Characters )
"DP ID is the unique identification of the Broker. Every broker gets a unique number from CDSL or NSDL.By carefully examining the number format of Demat Account we can easily identify whether the stock broker is registered with CDSL or NSDL.
Client ID is the unique identification of the Client. Every client gets this unique number which represents his/her portfolio.
In CDSL, all these characters are numbers (1234567891234567) first 8 digits are DP ID and next 8 digits are Client Id whereas in NSDL the first two characters are letters which are in accordance with the country that you are from (IN12345678912345), then 6 unique digits for Broker and next 8 digits are client ID.
Example:
CDSL = 12345678(DP ID) and 91234567(Client ID).
NSDL = IN123456 (DP ID) and 78912345(Client ID).
Check in brokers application?
Credit of Home First Finance Company (HFFC) Limited Unlisted Shares can be checked in brokers application as well but it takes T+2 days to show the shares.

The Home First Finance Company (HFFC) Limited Unlisted Shares are credited in demat account same day of transferring funds in our company's bank account.

The price of Home First Finance Company (HFFC) Limited Unlisted Shares can be checked in two ways. First, you can join our telegram channel where on daily basis we share the latest prices of all the unlisted shares in the morning and secondly, you can register on UnlistedZone.live platform to see the historical graphs and prices of all the shares at one place.

If you see the thesis of investment in the unlisted shares then it is being done mainly to take the advantage of IPO market. And, if the IPO plans of company get delayed due to market conditions or any other reason then demand suddenly drops in the market. The unlisted market works mainly on demand and supply and if there is no IPO news then getting exit would be difficult.

"UnlistedZone is India's fastest and leading marketplace to buy and sell unlisted shares. In the last 3 years, we have already served more than 1 million users on the platform. The total transactions value done from the platform is already more than 100 Crores. The name of our Co-founders Mr. Umesh Paliwal and Dinesh Gupta publish regularly in leading newspapers like MoneyControl, Business-Standard, ET etc for their views on IPO and Unlisted market. In the last 3 years, UnlistedZone has made a good name for itself in the industry and gained a trust of their users. So, the new investors should not be worried about any kind of fraud that is mostly happens with unkown brokers in the market while doing investment with UnlistedZone."

We at UnlistedZone do the valuation based on 2 methods.

1. We check the last funding that is being done in the Home First Finance Company (HFFC) Limited Unlisted Shares to ascertain the benchmark valuation.
2. If there is no funding happened in the company, then we try to find a business similar to Home First Finance Company (HFFC) Limited Unlisted Shares in the listed space and do comparison method to ascertain the valuation.

As an investor in the unlisted space, we would always recommend that you must check all the risk parameter carefully before investing in the unlisted space.

We source shares either from the employees or initial investors looking to liquidate their Home First Finance Company (HFFC) Limited Unlisted Shares.

Pre-IPO shares means which are planning for an IPO in near future. So, all the shares which are traded on the platform are not Pre-IPO Shares. However, if the company's business is going good and then demand will always be there in the unlisted space, so even if the IPO does not come, the investors can easily liquidate their Home First Finance Company (HFFC) Limited Unlisted Shares in the unlisted market itself.

Rules and regulations of SEBI are applicable in the Unlisted space like lock-in period of 6 months, paying of Stamp Duty, and DP Charges for every transaction etc. However, to become an unlisted broker there is no such regulation by SEBI as of yet.

For tracking news and other information about Home First Finance Company (HFFC) Limited Unlisted Shares, one can visit our website wherein we post news and other information on daily basis and one can also join our telegram channel.

Discussion on Home First Finance Company (HFFC) Limited Unlisted Shares:

6 Comments

arc01y2k

3:42 PM, 21 September 2020

what’s the current price?

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kushaagra

12:23 PM, 17 September 2020

What is the share price of Home First Finance Company Limited?

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Market Wizard

2:19 PM, 19 June 2020

Website of Home First Finance:

https://homefirstindia.com/about/

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Market Wizard

2:17 PM, 19 June 2020

Know-how about the Founders of Home First Home Finance:

(i) Jaithirth (Jerry) Rao holds Master’s degrees in Business Administration from the IIM-Ahmedabad as well as the University of Chicago, US. He is a visiting faculty at both institutions. He has been honoured with the Distinguished Alumnus Award from the University of Chicago. He was also the Founder, Chairman and Managing Director of Mphasis during which time he was awarded the Ernst & Young Entrepreneur of the Year Award twice in 2001 & 2004, and the Karnataka State Rajyothsava Award in 2005. In the past, Mr. Rao has served as chairman of NASSCOM. He was with Citicorp for 20 years in various capacities, including the Head of Citibank where he was primarily responsible for building one of the bank’s Asian retail and credit card franchises, apart from working in various parts of the world. He has been an entrepreneur-in-residence at the Harvard Business School and lecturer at IIT, Bombay. He is on the Board of Trustees of the India Foundation of the Arts and of Sujaya Foundation.

(ii) P S Jayakumar is currently the MD and CEO of Bank of Baroda. He holds a master’s degree in Management from XLRI, Jamshedpur, a master’s degree in Commerce from the University of Madras, and is an Associate Member of the Institute of Chartered Accountants of India. He is also a Gurukul Chevening Scholar from the London School of Economics and Political Science (1998). Mr. Jayakumar started his career with Citibank in 1986 and has held many senior management positions there, including being country head for Consumer Business in India and Head for Consumer Lending Business in Asia Pacific. During his banking career, spanning 27 years, Mr. Jayakumar has contributed significantly to the development of the retail banking industry in India.

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Market Wizard

2:04 PM, 19 June 2020

Home First Finance was set up in 2010 by former Mphasis chairman Jaithirth (Jerry) Rao and former Citibank Consumer Banking Head PS Jayakumar.

The company had been growing at a compounded annual growth rate of over 50%.

It had raised capital from Bessemer Venture Partners (BVP) in 2010 and 2012, and from Alpha TC Holdings Pte Ltd, the private equity firm managed by Tata Capital Growth Fund, in 2013. The company recently raised f100 million dollar from True North Fund in 2017.

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Market Wizard

3:22 AM, 19 June 2020

Home First Home Finance has already filed for an IPO and got the approval from SEBI in the month of March-2020.

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Home First Finance Company (HFFC) Limited Unlisted Shares

Home First Finance Company (HFFC) Limited Unlisted Shares Details:

Promoters And Management:

Shareholding Pattern:

Financials of Home First Finance Company (HFFC) Limited Unlisted Shares:

Frequently Asked Questions:

Discussion on Home First Finance Company (HFFC) Limited Unlisted Shares:

6 Comments

arc01y2k

kushaagra

Market Wizard

Market Wizard

Market Wizard

Market Wizard

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