Global private equity firm Warburg Pincus and two promoter group units have divested shares of Home First Finance worth ₹750 crore through open market on Thursday, the second time in six months, according to data on wholesale deals.
Warburg Pincus, through its subsidiary Orange Clove Investments BV, divested 28,83,819 shares, representing a 3.3% stake in the affordable housing finance company, for approximately ₹251 crores.
Until the end of September, a subsidiary of Warburg Pincus held 26.4% of the company.
Ether Mauritius, part of the promoter group, disposed of 23,07,229 shares, representing a 2.6% stake, for approximately ₹201 crores. At the end of September, Aether Mauritius had a 12 percent stake in Home First Finance.
True North Fund V Llp, another promoter entity, divested 34,60,699 shares, equivalent to 3.9% stake, for approx. ₹301 crores. This fund had an 18.16% stake in Home First Finance at the end of September.
The three entities collectively unloaded stock at an average rate of ₹870.4 each, representing a discount of approximately 5% compared to the previous closing price of the stock. This discounted sale put downward pressure on the stock, causing it to close 4% lower on the National Stock Exchange at ₹877.20.
During May, the combined share sales of the mentioned entities amounted to ₹330 crores.
True North Fund V and Aether Mauritius collectively divested 2,828,571 shares, amounting to a 3.2% stake in the company, while Warburg Pincus sold off a 2% stake.
In a separate transaction report on Thursday, Smallcap World Fund Inc, a venture capital firm based in California, acquired 2.7% ownership in Home First Finance by buying 2,395,000 shares for about ₹208 crores.
Fidelity Investments also participated as a buyer, acquiring 476,331 shares at ₹870 per share, in total ₹41.4 crores.
Home First Finance has emerged as one of the top performing stocks in the non-banking finance company (NBFC) sector, delivering returns of nearly 20% in the year 2023 to date.
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Updated: 23 Nov 2023, 20:58 IST
(tagsTranslate)Warburg Pincus