Home First Finance completes ₹150 cr NCD allotment to Kotak Mahindra Bank
- Home First Finance allotted ₹150 crore in senior secured NCDs to Kotak Mahindra Bank Ltd
- The issuance was approved by the Committee of Directors on August 28, 2026
- Debentures carry a floating coupon rate of 7.55% per annum as on the date of allotment
- The instruments mature on August 22, 2031, following a tenure of 59 months and 25 days
- Security is provided via a first-ranking charge over receivables and identified cash equivalents
*this image is generated using AI for illustrative purposes only.
Home First Finance Company has completed the allotment of ₹150 crore worth of senior secured non-convertible debentures (NCDs) through a private placement. The Committee of Directors approved the allotment on August 28, 2026, with Kotak Mahindra Bank Ltd as the sole investor.
The company notified both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This follows an earlier Board authorization for the issuance on May 6, 2026, and final approval from the Committee of Directors and Review Committee on August 21, 2026.
Allotment details
The key parameters of the completed NCD issuance are outlined below:
| Parameter | Details |
|---|---|
| Aggregate amount | ₹150 crore |
| Number of debentures | 15,000 |
| Face value | ₹1,00,000 per debenture |
| Instrument type | Senior, secured, rated, listed, taxable, redeemable, transferable NCDs |
| Issuance mode | Private placement |
| Investor | Kotak Mahindra Bank Ltd |
| Listing venue | BSE Wholesale Debt Market Segment |
| Tenure | 59 months and 25 days from deemed date of allotment |
| Allotment date | August 28, 2026 |
| Maturity date | August 22, 2031 |
| Interest rate | FBIL 3M MIBOR-OIS plus spread (7.55% p.a. as on allotment) |
| Interest payment frequency | Quarterly |
Security and default terms
The debentures are secured by a first-ranking pari passu continuing charge over the company’s receivables, including identified cash and cash equivalents. This security interest must maintain a value at least 1.11 times the outstanding amounts.
In the event of a payment default exceeding three months, the company is required to pay additional interest at 2% per annum over the prevailing interest rate until the default is cured or obligations are repaid.
Regulatory framework
Home First Finance Company India Limited complied with Section 42 and Section 71 of the Companies Act, 2013, as well as the SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021. Shreyans Bachhawat, Company Secretary and Compliance Officer, signed the intimation letter dated August 28, 2026.
Historical Stock Returns for Home First Finance Company
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.22% | -2.41% | -0.27% | +18.61% | -9.44% | +108.79% |
How will the ₹150 crore infusion from Kotak Mahindra Bank impact Home First Finance's liquidity position and ability to scale its housing finance portfolio in the coming fiscal year?
Given the floating interest rate structure linked to MIBOR-OIS, what is the company's exposure to rising interest rate environments over the 59-month tenure, and how might this affect its net interest margins?
What strategic rationale does Home First Finance have for securing a sole-investor private placement with Kotak Mahindra Bank rather than pursuing a broader public issuance or diversifying its debt investor base?
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