Mortgage financier Home First Finance Company (HFFC) has fixed a price band of Rs 517-518 per share for its initial public offering (IPO) which will open for subscription on January 21 and close on January 25.

The offer aggregating up to Rs 1,153.71 crore comprises a fresh issue of up to Rs 265 crore and an offer-for-sale of up to Rs 888.71 crore by promoters and existing shareholders.

The offer-for-sale consists of shares worth Rs 435.61 crore by True North Fund V LLP, Rs 291.28 worth crore shares by promoter Aether (Mauritius) Ltd, Rs 120.46 crore by investor Bessemer India Capital Holdings II Ltd and up to Rs 41.3 crore by two individual shareholders — P.S. Jayakumar and Manoj Viswanathan.

The company has reduced the fresh issue size following the allotment of shares in an pre-IPO placement worth Rs 75 crore and Rs 4.84 crore to Orange Clove Investments BV, an affiliate of Warburg Pincus, and to its certain employees, respectively, by way of preferential issue.

Axis Capital, Credit Suisse Securities (India) Pvt Ltd, ICICI Securities Ltd and Kotak Mahindra Capital Company Ltd are the book running lead managers to the offer.

This would be the third initial public offer (IPO) this year after Indian Railway Finance Corporation (IRFC) and Indigo Paints.

HFFC intends to utilise the net proceeds towards augmenting its capital base to meet its future capital requirements.

Around 50 per cent of the issue is reserved for qualified institutional buyers, 35 per cent for retail investors and 15 per cent for non-institutional buyers.

The company is a technology driven affordable housing finance firm that targets first time home buyers in low and middle

income groups. It offers customers, housing loans for the purchase or construction of homes, which comprised 92.1 per cent of the gross loan assets, as of September 30, 2020. Its gross loan assets have grown at a compounded annual growth rate (CAGR) of 63.4 per cent between 2017-18 and 2019-20.