Smallcap World Fund Increases Stake in Home First Finance Company to 7.81%

Home First Finance Company India Ltd. announced that Smallcap World Fund has raised its stake in the firm to 7.8078% from its earlier holding of 5.6102%. This substantial action reflects increased institutional faith in the affordable housing finance company, which has been busy increasing its footprint among first-time homebuyers in India's low and middle-income brackets.

 

The stake increase follows closely on the heels of Home First Finance's successful ₹1,250 crore qualified institutional placement (QIP), which saw robust interest from foreign and domestic institutional investors. The infusion of capital is likely to support the company's growth strategy, allowing it to further grow its loan book and reach across the country. Management has reaffirmed its goal of doubling its loan book in the next three years with a view to achieving 30% annual growth.

 

The rise in Smallcap World Fund holding reflects the overall trend of foreign institutional investment increasing in top smallcap companies with high growth, while promoter holding has witnessed a consistent downturn. With strong fundamentals, a technology-driven platform, and improved investor support, Home First Finance is poised to continue its uptrend in affordable housing.

 

Source: Reuters