Home First Finance Company India Limited has announced the allotment of 81,996 equity shares under its Employee Stock Option Plans (ESOP) on March 17, 2026. The allotment was approved by the Committee of Directors and Review Committee pursuant to the exercise of vested Employee Stock Options under the company's ESOP schemes.

Share Capital Enhancement

The allotment has resulted in an increase in the company's paid-up share capital structure:

ESOP Scheme-wise Distribution

The 81,996 equity shares were allocated across four different ESOP schemes with varying exercise prices:

Regulatory Compliance and Share Details

The allotment was conducted in compliance with Regulation 10(c) of the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. The company has filed the required disclosures with both BSE Limited and the National Stock Exchange of India Limited.

The newly allotted shares are identical in all respects to the existing equity shares of the company and will rank pari-passu with them. Home First Finance Company India Limited is currently completing the necessary formalities for listing these allotted shares on the stock exchanges.

Corporate Structure

The company maintains its registered office at 511, Acme Plaza, Andheri Kurla Road, Mumbai- 400059, and its shares are listed on both BSE Limited and the National Stock Exchange of India Limited. The distinctive numbers for the newly issued shares range from 10,42,46,022 to 10,43,28,017, with no lock-in period applicable to these shares.

Citi has reaffirmed its positive outlook on Home First Finance Company by maintaining a Buy rating with a target price of ₹1,380. The brokerage's recommendation is supported by multiple growth drivers and improving operational metrics across the company's key business segments.

Strong Growth Momentum

The company is experiencing accelerating disbursements that are driving robust business expansion. This growth trajectory is supporting approximately 25% year-on-year AUM (Assets Under Management) growth, indicating strong demand for the company's financial products and effective market penetration strategies.

Regional Market Performance

Home First Finance Company has demonstrated strong traction across its primary operational markets of Gujarat, Maharashtra, Madhya Pradesh, and Rajasthan. This regional performance strength is contributing significantly to the overall business momentum and supporting the sustained growth in disbursements.

Asset Quality Improvements

The company's asset quality metrics are showing positive trends across multiple parameters:

• Lower DPD Targets: The company has implemented more stringent delinquency management practices
• Higher Provision Coverage: Enhanced provisioning strategies are strengthening the balance sheet
• Stress Pocket Normalization: Export-linked stress areas are showing signs of recovery and stabilization

Yield Impact Assessment

Citi's analysis indicates that a minor PLR (Prime Lending Rate) cut will have only a limited impact on the company's Q4 yields. This assessment suggests that the company's pricing power and portfolio composition provide resilience against interest rate adjustments.

Investment Outlook

The combination of accelerating growth, regional market strength, improving asset quality, and manageable yield pressures supports Citi's positive investment thesis. The ₹1,380 target price reflects confidence in the company's ability to maintain its growth trajectory while strengthening its operational fundamentals across key performance metrics.