Transaction took place at a 7% discount to the stock’s previous market close. On the contrary, Fidelity Funds, Nomura Trust and Banking Co bought the co’s shares

US venture capital firm exits Home First Fin via sale of 8% stake in open marketAgencies
American venture capital firm Bessemer Venture Partners has exited Home First Finance Company by selling its entire 7.75% stake in the company through the open market.

The VC firm through its affiliate, Bessemer India Capital Holdings II, sold 68,11,313 shares at Rs 687.07 apiece, aggregating up to Rs 467 crore, according to bulk deals data.

The transaction took place at a steep discount of about 7% to the stock’s previous market closing price. The big sale exerted pressure on the stock, which ended nearly 8% down at Rs 680.25 on the NSE.

In separate deals, Fidelity Funds and Nomura Trust and Banking Co bought shares of the housing finance company. They did not hold any stake in the home finance company prior to this.

Fidelity Funds bought 4,93,627 shares for around Rs 34 crore, and Nomura bought 7,00,000 shares for about Rs 48 crore.

Apart from Fidelity and Nomura, Goldman Sachs and Kuwait Investment Authority are the foreign institutional investors in the company.

The stock has underperformed benchmark Nifty50 in the last one year. It has fallen by about 0.4% whereas the benchmark has given about 8% returns.

But, in terms of earnings, the company has put up a stellar show and this has led to a bullish view by analysts.

For the quarter ended December, the company reported a 28% on-year growth in net profit to Rs 58.7 crore, on the back of 35% growth in revenue to Rs 205 crore.

According to Trendlyne, the company’s annual revenue is expected to more than double by FY24. Of the 12 analysts tracking the company, 9 have given the stock a “strong buy”.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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