Shares of Home First Finance Company India Ltd. declined as much as 6% on Thursday, February 26, following a significant block deal transaction. According to reports from CNBC TV18, 56.2 lakh shares, or 5.4% of the company's equity, worth ₹662.6 crore changed hands in the block deal. The buyers and sellers in this transaction have not been officially disclosed yet, with the immediate impact on the stock price underscoring market sensitivity to large ownership shifts, particularly when executed outside regular trading channels.
As reported by CNBC TV18 citing sources, True North Fund V LLP and Aether (Mauritius) Ltd. are likely to be the sellers in this transaction. At the end of the December quarter, True North held a 7.45% stake in the company while Aether (Mauritius) held a 4.9% stake. This transaction follows a pattern of significant promoter stake movements, including Warburg Pincus' ₹1,307 crore exit in August 2025 when it sold a 10.64% stake, and a more recent ₹1,728 crore stake sale by promoters on December 2, 2024. The recurrent large-scale exits by key stakeholders suggest a strategic recalibration within the company's ownership base, prompting scrutiny regarding future strategic direction and promoter confidence.
Despite the stock decline, the company reported robust financial results for the December quarter, with net profit increasing 44% to ₹140.2 crore from ₹97.7 crore in the previous year. As reported by CNBC TV18, net interest income (NII) was up 44% to ₹234.8 crore from ₹163.1 crore in the year-ago period. The stock had ended the previous session 3.4% up at ₹1,245.5 apiece, indicating that the block deal's implications on ownership structure and potential promoter sentiment took precedence over recent operational successes. The company's Price-to-Earnings ratio of approximately 26.2x places it at a premium compared to industry peers like LIC Housing Finance (5.2x) and Aavas Financiers (16.4x).
According to CNBC TV18, the stock had gained 27.4% in the past year and was up 110% from its IPO price of ₹518 per share. However, it was down 18% from its 52-week high of ₹1,519 and down 5% at ₹1,184.1 just after market open. Despite the current sell-off, analyst consensus remains cautiously optimistic with a significant number of analysts maintaining a 'Buy' rating and average 12-month price targets suggesting upside potential ranging from 16% to over 24% from current levels. However, the company's market capitalization of around ₹13,000 crore and high geographical concentration in Gujarat (31% of AUM as of March 2024) remain areas of concern for diversification.
