Home First Finance Shares Slide 6% After ₹662 Crore Block Deal; 5.4% Equity Changes Hands
Shares of Home First Finance Company India Ltd. fell as much as 6% on Thursday, February 26, after a large block deal saw 5.4 million shares, representing 5.4% of the company’s equity, change hands. The transaction was valued at ₹662.6 crore.The identities of the buyers and sellers in the block deal have not been officially disclosed.
Block Deal Details and Likely Sellers
A report on Wednesday indicated that up to 6.8% of the company’s equity, worth ₹841.5 crore, was likely to be traded at a floor price of ₹1,185 per share. The report suggested that True North Fund V LLP and Aether Ltd. were likely to be the sellers in the transaction.As per the shareholding pattern at the end of the December quarter, True North held a 7.45% stake in Home First Finance, while Aether held 4.9%. Both entities are classified as promoters of the company.
The latest transaction comes after a significant stake sale in August last year, when Warburg Pincus exited the company by selling a 10.64% stake for ₹1,307 crore. Multiple major funds were buyers in that deal.
Strong December Quarter Performance
The block deal activity follows a strong set of quarterly results from the company. Home First Finance reported a 44% year on year rise in net profit for the December quarter, with profit increasing from ₹97.7 crore to ₹140.2 crore.Net interest income also rose 44% during the third quarter, climbing from ₹163.1 crore to ₹234.8 crore.
Stock Performance and Market Reaction
Shares of Home First Finance had closed the previous session 3.4% higher at ₹1,245.5 apiece. The stock has gained 13% so far this year and is up 27.4% over the past 12 months.Despite these gains, the stock remains 18% below its 52 week high of ₹1,519 per share. However, it continues to trade significantly above its IPO price of ₹518, having gained over 110% from that level.
Following the block deal, the stock was down 5% at ₹1,184.1 shortly after the market opened on Thursday.
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