Synopsis: Shares of Home First Finance Company India Ltd tumbled over 6% on February 26, 2026, after a massive block deal worth ₹663.2 crore was executed on the exchanges. The transaction, reportedly involving a stake sale by promoter True North, triggered a sharp sell-off as the stock reached an intraday low of ₹1,173.
Home First Finance Shares Fall 6% After Block Deal
The affordable housing finance sector witnessed significant volatility today as Home First Finance became the latest mid-cap firm to see a large-scale promoter exit.
The stock opened with a gap-down and extended its losses to 6%, breaking its recent five-day winning streak.
This correction comes despite the company’s robust Q3FY26 performance, where it reported a 44% jump in net profit.
Inside the ₹663 Crore Block Deal
The transaction involved approximately 53.3 lakh shares, representing a 5.1% equity stake in the company.
While the official list of buyers and sellers will be released by the exchanges later tonight, market sources indicate that True North Fund V LLP was the primary seller.
Key Details of the Transaction:
- Floor Price: The deal was reportedly executed at a floor price of ₹1,245 per share, which was a 0.2% discount to the previous day’s closing price.
- Transaction Value: The total deal value reached approximately ₹663.2 crore.
- Impact on Stake: True North, which held a significant position in the company, has been gradually paring its stake over the last four quarters to provide liquidity to its investors.
Fundamental Strength vs. Technical Correction
While block deals often cause temporary price pressure due to sudden supply, the fundamentals of Home First Finance remain healthy.
In its latest quarterly disclosure, the company highlighted a 24.9% YoY growth in Assets Under Management (AUM), reaching ₹14,925 crore.
- Asset Quality: The Gross Stage 3 assets (GNPA) stood stable at 2.0%, while the cost of borrowings improved to 8.0%.
- Market Position: With a focus on the EWS/LIG (Economically Weaker Section) category, the company continues to benefit from the government’s push for affordable housing.
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Investor Outlook
Technically, the stock has slipped below its 20-day and 50-day moving averages following today’s crash.
However, several institutional brokerages, including Motilal Oswal and ICICI Securities, maintain a “Buy” rating on the stock with target prices ranging from ₹1,250 to ₹1,375.
They view such block-deal-led corrections as potential accumulation opportunities for long-term investors, citing the company’s superior ROE of 16.5% and its technology-driven underwriting model.
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