US based private equity firm Warburg Pincus LLC ("Warburg Pincus"), through it's affiliate Orange Clove Investments BV, has entered into an agreement to invest about $95 MN (INR 700 Cr) in Home First Finance Company India Ltd ("Home First") on October 2, 2020. The announcement came in today from the leading global private equity firm focused on growth investing. The investment of approximately INR 700 crore is a combination of primary fund raise and secondary sales by existing shareholders. Warburg Pincus joins existing marquee PE firm shareholders True North and Bessemer Venture Partners.
Home First is a technology driven, affordable housing finance company providing home loans to customers from low- and middle-income segments, who are building or buying their first homes. Over the last 10 years, Home First has sanctioned home loans across India to more than 50,000 customers in 60 districts, covering 11 states and 1 union territory. As of March 31, 2020, Home First had an AUM of $480 Mn (INR 3618 Cr) with a Net worth of $124 Mn (INR 933 Cr) and GNPA of 0.87%
This investment is a huge vote of confidence for the Indian affordable housing segment in general and more specifically for the performance of Home First even in the face of this worldwide crisis.
Narendra Ostawal, MD, Warburg Pincus said, "Home First has had a remarkable journey to become a leading affordable housing finance company in a relatively short span of 10 years. It is helmed by a very talented team and robust operating processes that continue to steer the company to do well through the pandemic and to leverage the growth potential of the affordable segment. Warburg Pincus looks forward to the partnership with True North and towards backing Manoj and the management team in its next phase of expansion."
Divya Sehgal, Partner, True North said, " We are proud of the way the company has utilised technology to its advantage, adopting a digital first approach in navigating Covid-19. We welcome Warburg Pincus and look forward to partnering with them in the upcoming journey of Home First."
"Home First is excited to partner with Warburg Pincus in this new phase of its journey.. True North has been a great support as we scaled from a small to a mid-sized company. Our shared passion for tech, belief in sustainable growth and strong governance has seen us thrive through several disruptive events," said Manoj Viswanathan, CEO, Home First.
To know more about Warburg Pincus & Home First click here
|Currency||Exchange rate as on March 31, 2020 (INR)||Exchange rate as on October 1, 2020 (INR)|
(Source for 1 USD: www.fbil.org and www.rbi.org.in). Rate as on October 1,2020 is considered since October 2 was a public holiday.
Home First Finance Company India Limited is proposing, subject to receipt of requisite approvals, market conditions and other considerations, to undertake an initial public offer of its equity shares and has filed a draft red herring prospectus dated November 28, 2019 ("DRHP") with the Securities and Exchange Board of India on November 29, 2019. The DRHP is available on the website of the SEBI at www.sebi.gov.in, the respective websites of the book running lead managers, i.e., Axis Capital Limited, Credit Suisse Securities (India) Private Limited, ICICI Securities Limited and Kotak Mahindra Capital Company Limited at www.axiscapital.co.in, https://www.creditsuisse.com/in/en/investmentbanking/regionalpresence/asiapacific/india/ipo.html, www.icicisecurities.com and http://investmentbank.kotak.com, respectively, the website of the National Stock Exchange of India Limited at www.nseindia.com and the website of BSE Limited at www.bseindia.com. Investors should note that investment in equity shares involves a high degree of risk and for details relating to such risk, see "Risk Factors" of the DRHP. Potential investors should not rely on the DRHP for any investment decision.
The Equity Shares of Home First have not been and will not be registered under the U.S. Securities Act of 1933, as amended ("U.S. Securities Act") or any state securities laws in the United States, and unless so registered may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and applicable state securities laws. Accordingly, such Equity Shares are being offered and sold (i) outside of the United States in offshore transactions in reliance on Regulation S under the U.S. Securities Act and the applicable laws of the jurisdiction where those offers and sales occur; and (ii) to "qualified institutional buyers" (as defined in Rule 144A under the U.S. Securities Act), pursuant to the private placement exemption set out in Section 4(a) of the U.S. Securities Act. Neither this release nor information on the website of Home First constitutes or forms a part of any offer to sell or solicitation of an offer to purchase or subscribe for such Equity Shares in the United States or elsewhere where such offer, solicitation or sale would be unlawful.