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.
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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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