Warburg Pincus, 2 promoters sell Rs 750-crore worth Home First Finance shares via open market

MUMBAI - Global private equity firm Warburg Pincus and two promoter group entities offloaded shares of Home First Finance through the open market on Thursday for the second time in six months.

Warburg Pincus, through its affiliate Orange Clove Investments BV, sold 28,83,819 shares or 3.3% stake in the affordable housing financing company for about Rs 251 crore, according
to bulk deals data.


As of September-end, Warburg Pincus, through this affiliate, held 26.4% stake in the company.

Aether Mauritius, which is part of the promoter group, offloaded 23,07,229 shares or 2.6% stake for approximately Rs 201 crore. As of September-end, it held a 12% stake in Home First Finance.

Another promoter entity to sell shares of the company was True North Fund V Llp. This fund sold 34,60,699 shares or 3.9% stake for approximately Rs 301 crore. This fund held 18.16% stake in Home First Finance as of September end.

Shares by the three entities were sold at an average price of Rs 870.4 apiece. The sale happened at a discount of nearly 5% to the previous closing price of the stock.

As a result, the stock came under pressure and ended 4% lower on the National Stock Exchange at Rs 877.20.

In May, the above-mentioned three entities cumulatively sold shares worth Rs 330 crore.

True North Fund V and Aether Mauritius cumulatively sold 28,28,571 shares, representing 3.2% stake in the company, while Warburg Pincus offloaded 2% stake.

Separate bulk deals data on Thursday showed that California-based venture capital firm Smallcap World Fund Inc bought 23,95,000 shares or 2.7% stake in Home First Finance for about Rs 208 crore.

Fidelity Investments was also a buyer, acquiring 4,76,331 shares at Rs 870 apiece, aggregating Rs 41.4 crore.

Home First Finance has been one of the best-performing stocks in the NBFC space, giving returns of nearly 20% so far in 2023.

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