Block deal today: 10.3% stake in Home First Finance Company India to change hands

Home First Finance Company India Ltd shares are in focus on Monday, August 11, as Orange Clove Investments BV is likely to sell 10,980,033 shares, or 10.3 per cent stake, in the housing finance company (HFC) for up to Rs 1,255 crore or $143 million in total consideration via block deals today. Shares would be offloaded by the Warburg Pincus entity at an indicative price of Rs 1,143-1,202 per share, which suggests up to 4.9 per cent discount to Friday's closing price of Rs 1,202.30 apiece on NSE.

ICICI Securities is the sole bookrunner for the deal. The deal would take place  by way of one or more share sales on the screen-based trading platform of domestic stock exchanges. 

Orange Clove Investments, a public shareholder, owned 1,09,80,033 shares, or 10.64 per cent stake, in the company at the end of June quarter. Promoter holding in Home First Finance Company stood at 12.43 per cent. 

Home First’s disbursements in the June quarter were 3 per cent below YES Securities' expectation. The annual growth decelerated further to 7 per cent against 23 per cent YoY in  preceding three quarters. 

"Excluding co-lending disbursements, the growth in core segment disbursements was 4 per cent YoY. Growth in loan originations has been impacted in the  markets of Tamil Nadu (team stabilization), Telangana (team stabilization) and UP  (tightening of property underwriting in certain locations). Business growth in AP also likely moderated during the quarter. HFF had tightened underwriting and selection in  higher-ticket segment (>Rs25 lacs) across markets from Q3 FY25," the brokerage said.

"There was more than normal uptick in delinquencies in a few  regions, and Surat and Coimbatore-Tirupur markets exhibited prominent increase.  Credit cost was annualized 40 bps, but there was a decline in Stage-3 PCR from 25 per cent to 22 per cent. Origination Yield (excl. Co-lending) was stable at 13.4 per cent," YES Securities said.

Dalal & Broacha Stock Broking said Home First Finance reported a soft Q1FY26, impacted by a rise in early delinquencies and higher NPAs, which weighed on disbursement growth. While asset quality trends showed improvement in July 2025, any further spike in NPLs remains a key risk to watch, it said.

"Despite this, the outlook for affordable housing finance is robust, supported by favorable macros such as rising demand, low penetration, government initiatives, and sustained urbanization. Management is targeting ambitious AUM growth, aiming for Rs 20,000 crore by FY27 and Rs 30,000 crore by FY30," it said.