HomeFirst Finance raises ₹1,250 cr via QIP; IFC, Fidelity Funds, HDFC MF, among investors

Affordable housing finance company HomeFirst Finance has raised ₹1,250 crore through qualified institutional placement (QIP), which concluded last week. The company allotted 1.28 crore equity shares to qualified institutional buyers (QIBs) at an issue price of ₹970 per share, which garnered strong participation from leading global and domestic institutional investors.

International Finance Corporation (IFC), a member of the World Bank Group, Capital World, Fidelity Funds, and HDFC Mutual Fund were among investors that participated in the QIP.

“The committee of directors and review committee of its board approved the allotment of 1.28 crore equity shares to qualified institutional buyers (QIBs) at an issue price of ₹970 per share (including a premium of ₹968 per share), raising ₹1,249.99 crore,” HomeFirst Finance said in a release today.

The shares were issued at a discount of ₹49.25 per share (4.83%) to the SEBI-determined floor price of ₹1,019.25. The institutional placement, which opened on April 8, 2025, and closed on April 11, 2025, saw strong demand, increasing the company’s paid-up equity share capital from ₹18.01 crore (9,00,55,540 shares) to ₹20.59 crore (10,29,42,137 shares), said the company.

“The transaction underscores investor confidence in HFFC’s robust growth trajectory, and commitment to empower affordable homeownership in India,” the release highlighted.

As per the company, IFC has been allotted 35,87,628 shares, 27.84% of the QIP. Known for its rigorous due diligence, IFC’s investment highlights HFFC’s position as a trusted player in India’s affordable housing finance sector, it said.

In addition to IFC, investments by other global and domestic heavyweights reinforce confidence in the company’s ability to attract capital from institutions with a track record of backing scalable, socially impactful businesses, the release noted. Some of the key investors were Capital World (11,08,446 shares allotted, 8.60%), Fidelity Funds (14,07,314 shares allotted, 10.92%), and HDFC Mutual Fund (14,22,680 shares allotted, 11.04%).

Home First Finance is a technology driven affordable housing finance company that targets first time home buyers in low and middle-income groups. It primarily offers housing loans for the purchase or construction of homes. The company caters to large housing finance markets with a network of 149 branches with presence in 13 States / UT in India.