Home First Finance Company India Ltd. opened its qualified institutional placement of shares on Tuesday to raise up to Rs 1,250 crore. The company set a floor price of Rs 1,019.25 per share, which represents a 3.2% premium over the previous close.
The housing finance company may offer a discount of up to 5% on the floor price, according to a stock exchange filing.
The issue price to the investors will be determined in consultation with the book-running managers Kotak Mahindra Capital Co., SBI Capital Markets Ltd., and Motilal Oswal Investment Advisors Ltd.
The company had received board approval for the QIP in January.
Home First Finance is a housing finance company in the affordable housing segment based in Mumbai and founded in 2010.
The stock advanced 0.92% to close at Rs 988.45, ahead of the announcement. The benchmark BSE Sensex ended 1.5% higher.
The stock has risen 4% in the last 12 months and fallen 5.4% on a year-to-date basis.
Out of the 23 analysts tracking the company, 22 have a 'buy' rating on the stock, and one suggests a 'sell', according to Bloomberg data. The average of the 12-month analyst price target of Rs 1,219 implies a potential upside of 23%.
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