Warburg Pincus increased its equity stake in Home First by 5%

 

Mumbai, January 14, 2021: Home First Finance Company India Ltd (“Home First” or “Company”),

one of India’s leading affordable housing finance companies announced today that certain existing

shareholders (“Sellers”) of the Company have sold a part of their equity shareholding in the

Company to Orange Clove Investments B.V., an affiliate of the private equity funds managed by

Warburg Pincus) (“Acquirer”).

Details of the Transaction 

As a part of the share subscription and purchase agreement dated October 1, 2020 and pursuant to

the approval of the RBI, the Acquirer has purchased 5.03% of the paid-up equity share capital of the

Company from the Sellers (“Transaction”). Pursuant to the Transaction, the Acquirer now owns

30.62% of the paid-up equity share capital of the Company. 

This Transaction will help Home First diversify its shareholder’s base and boost stakeholder’s

confidence in the growth of the Company. Warburg Pincus considers this as a great opportunity to

expand its investments in the financial services sector in India and believes that the existing

association will help Home First to further strengthen its financial position and growth prospects. 

Home First is a technology driven, affordable housing finance company, providing home loans to

customers from low- and middle-income groups, who are building or buying their first homes. Over

the last 10 years, Home First has sanctioned home loans to more than 50,000 customers in 60

districts, across 11 states and 1 union territory. Coming at a time when the whole world is navigating

an unprecedented crisis, we believe this transaction is a huge vote of confidence for the affordable

housing segment in general and more specifically for the quality of Home First’s portfolio in the face

of the ongoing pandemic.