Three Entities Divest 19.6% Stake in Home First Finance for Rs 1,728 Crore Through Open Market Transactions

On Monday, two promoters of Home First Finance, along with a Warburg Pincus affiliate, sold a 19.6% stake in the affordable housing finance firm. The total transaction was valued at Rs 1,728 crore and conducted through open market deals. The promoters involved were Aether Mauritius Ltd and True North Fund V LLP, who sold shares of the Mumbai-based company.

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Orange Clove Investments BV, part of US private equity firm Warburg Pincus, also participated by selling shares in two separate transactions on the BSE. According to bulk deal data from the exchange, Orange Clove Investments sold 94.42 lakh shares, representing a 10.6% stake in Home First Finance.

Stake Reductions and New Acquisitions

True North Fund V LLP offloaded 48.09 lakh shares, which equates to a 5.4% stake in the company. Additionally, Aether Mauritius sold 32.06 lakh shares, reducing its holding by 3.6%. These transactions were executed at prices ranging from Rs 990 to Rs 990.05 per share, resulting in a combined deal value of Rs 1,728.48 crore.

Following these sales, Warburg Pincus's stake through Orange Clove Investments decreased from 22.9% to 12.3%. True North's shareholding dropped from 14.07% to 8.67%, while Aether Mauritius's stake fell from 9.31% to 5.71%. This significant reduction reflects a strategic shift among these stakeholders.

Institutional Buyers Step In

HDFC Mutual Fund, Goldman Sachs, Prudential Hong Kong, Norges Bank, Citigroup Global, Capital Group, and BofA Securities collectively acquired 1.12 crore shares or a 12.6% stake in Home First Finance. They purchased these shares at prices between Rs 989.98 and Rs 990 each, amounting to a total deal value of Rs 1,110.43 crore.

The identities of other buyers involved in acquiring Home First Finance shares remain undisclosed at this time. Meanwhile, the company's stock price increased by 2.10%, closing at Rs 1,074.55 per share on the BSE on Monday.

In November last year, True North Fund V LLP, Aether Mauritius Ltd., and Orange Clove Investments had previously divested a combined 9.8% stake in Home First Finance for Rs 753 crore.

This recent transaction marks another significant change in the ownership structure of Home First Finance as institutional investors step in to acquire substantial stakes.