Orange Clove Investments BV is set to divest a significant portion of its stake in Home First Finance Company India Ltd through a block deal, potentially reshaping the company's ownership structure. The move comes on the heels of Home First Finance's strong quarterly performance and ambitious growth targets.

Block Deal Details

Orange Clove Investments BV plans to sell 1 crore shares, representing a 10.3% stake in Home First Finance Company India Ltd. The block deal is valued at approximately ₹1,255.00 crore, with an indicative price range of ₹1,143.00 to ₹1,202.00 per share. This price range offers a potential discount of up to 4.9% from the previous closing price.

Prior to this announcement, Orange Clove held a 10.64% stake in Home First Finance at the end of the June quarter. The proposed sale would significantly reduce their ownership in the company.

Home First Finance's Recent Performance

Home First Finance has reported impressive financial results for the recent quarter:

The company's strong performance is evident across key financial indicators, with substantial year-over-year growth in net profit, net interest income, and assets under management.

Growth Targets and Recent Fundraising

Home First Finance's management has set an ambitious target for assets under management (AUM), aiming to reach ₹35,000.00-40,000.00 crore by FY25. This target underscores the company's aggressive growth strategy in the coming years.

In April, the company successfully raised ₹1,250.00 crore through a Qualified Institutional Placement (QIP). This marked Home First Finance's first equity fundraise since its initial public offering (IPO) in 2021, indicating investor confidence in the company's growth prospects.

Stock Performance

Home First Finance's shares closed at ₹1,200.40, down 1.54% in the most recent trading session. The stock has experienced a decline of 13.4% over the past month, potentially reflecting market reactions to the company's recent developments and broader market trends.

The proposed stake sale by Orange Clove Investments and Home First Finance's strong financial performance present a complex picture for investors. While the company demonstrates robust growth, the significant stake sale could impact market sentiment in the short term. Investors will likely be watching closely to see how this development affects the company's stock price and future growth trajectory.

Home First Finance Company India Limited (HFFC), a leading player in the affordable housing finance sector, has announced a significant move in its corporate governance structure. The company has issued a postal ballot notice seeking shareholder approval for the appointment of Mr. Sriram Hariharan as an Additional Non-Executive Independent Director.

Key Details of the Appointment

• The Board of Directors approved Mr. Hariharan's appointment on June 26, 2025, for a first term of five consecutive years.
• The appointment is subject to shareholder approval through a special resolution.
• The e-voting period for shareholders runs from August 6, 2025, to September 4, 2025.
• Results of the postal ballot will be declared by September 8, 2025.

About Sriram Hariharan

Mr. Hariharan brings a wealth of experience and expertise to HFFC:

• He holds engineering and management qualifications from NIT and IIM Bangalore.
• Previously served as President and CEO of ICICI Bank Canada from 2008 to 2019.
• Expertise in banking, risk management, corporate governance, and information technology.

Compensation Structure

If appointed, Mr. Hariharan will be eligible for:

• Sitting fees for attending board and committee meetings.
• Commission based on company performance, as previously approved by shareholders in November 2020.

Recent Financial Performance

HFFC has also reported its financial results for Q1 FY26:

Strategic Developments

• HFFC raised Rs. 1,250.00 crore through its first Qualified Institutional Placement (QIP), strengthening its capital base.
• The company's long-term credit rating was upgraded to AA (Stable) by ICRA, India Ratings, and CARE.
• HFFC continues to focus on technology-driven growth, launching "Pulse", an omnichannel Conversational AI platform.

Management Commentary

Manoj Viswanathan, MD & CEO of HFFC, commented on the company's performance: "Q1FY26 was marked by two important events in our history: our first QIP and credit rating upgrade. Both these events further enhance our ability to build a strong and large housing finance franchise."

The appointment of Mr. Sriram Hariharan, if approved, is expected to further strengthen HFFC's board and contribute to the company's strategic growth in the competitive housing finance market.