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Promoters offload 5.33% stake in Home First Finance triggering stock decline, while Motilal Oswal acquires 1.65% in Zelio E Mobility sending shares to upper circuit. Detailed financial analysis, block deal insights, and sector rotation trends.
A 5.33% promoter stake sale in Home First Finance worth nearly ₹660 crore triggered a sharp stock correction, even as global institutions absorbed supply in the same block window. At the same time, Motilal Oswal Financial Services picked up a 1.65% stake in Zelio E Mobility, sending the EV stock into a 10% upper circuit. The contrasting moves highlight capital rotation trends across housing finance, electric mobility, infrastructure, and mid-cap industrial plays.
Promoters Aether (Mauritius), part of GIC Ventures, and True North Fund V sold a combined 5.33% stake in Home First Finance Company India Ltd. through open market block deals at ₹1,190 per share.
| Seller | Shares Sold | Stake (%) | Deal Value (₹ Cr) | Price (₹) |
|---|---|---|---|---|
| Aether (Mauritius) | 27.38 lakh | 2.63% | 325.8 | 1,190 |
| True North Fund V | 28.08 lakh | 2.70% | 334.22 | 1,190 |
| Total | 55.46 lakh | 5.33% | ~660 Cr | 1,190 |
Following the transaction, the stock opened gap down and fell 5.67% to ₹1,177 amid heavy volumes.
However, institutional buyers stepped in simultaneously.
| Buyer | Shares Bought | Stake (%) | Value (₹ Cr) |
|---|---|---|---|
| Société Générale | 8.4 lakh | 0.8% | ~100 |
| Pictet Indian Equities | 17.97 lakh | 1.72% | ~213.84 |
The presence of global institutions indicates the deal was structured monetization by private equity promoters rather than distress selling.
| Metric | FY24 | FY25E |
|---|---|---|
| Loan Book | ₹9,500+ Cr | ₹11,000+ Cr |
| Revenue | ₹950–1,050 Cr | Expanding |
| Net Interest Margin | 7–8% | Stable |
| Gross NPA | ~1.7–2% | Controlled |
| Net Profit | ₹250–300 Cr | Improving |
| ROE | 14–16% | Gradual expansion |
| P/E Ratio | ~25–30x | In line with mid-cap NBFC peers |
Home First operates in the affordable housing finance segment, catering to first-time borrowers in Tier II and III cities. Asset quality remains relatively stable compared to microfinance-focused lenders, though funding cost pressures remain a watchpoint.
Promoter stake reduction by private equity funds typically reflects partial exit after value creation rather than operational weakness.
In contrast, Motilal Oswal Financial Services Ltd. purchased 3.5 lakh shares representing 1.65% stake in Zelio E Mobility Ltd. at ₹280 per share for ₹9.8 crore.
The stock rallied sharply and closed at 10% upper circuit at ₹307.7, breaking above its previous swing high.
| Buyer | Shares | Stake (%) | Deal Value (₹ Cr) | Price (₹) |
|---|---|---|---|---|
| Motilal Oswal Financial Services | 3.5 lakh | 1.65% | 9.8 | 280 |
| Metric | FY24 | FY25E |
|---|---|---|
| Revenue | ₹150–250 Cr (est.) | High growth trajectory |
| EBITDA Margin | 10–15% (est.) | Improving with scale |
| Market Focus | Electric 2-Wheelers | Tier II and III penetration |
| Growth Drivers | EV adoption, subsidy support | Expanding distribution |
| Risk Profile | Early-stage | High beta |
Zelio operates in India’s fast-growing electric two-wheeler market. Government incentives, rising fuel costs, and urban electrification trends are structural tailwinds. However, competitive intensity and execution capability remain critical variables.
Motilal Oswal’s entry could be seen as early institutional positioning in a high-growth EV sub-segment.
Capital Infra Trust units fell 1.06% to ₹69.32, marking an all-time low. Meanwhile, Larsen & Toubro Ltd. acquired 5.6 million units representing 1.1% stake at ₹69.5 per unit for ₹38.92 crore.
Simultaneously, Tata Equity Plus Absolute Returns Fund exited a 1.4% stake at similar pricing.
The activity reflects rebalancing within infrastructure exposure rather than directional collapse.
S Gupta Holdings acquired 0.55% stake in Apollo Pipes Ltd. for ₹8.29 crore at ₹341.32 per share. The stock rose 2.03% to ₹347.2.
| Metric | FY24 |
|---|---|
| Revenue | ₹1,200–1,400 Cr |
| EBITDA Margin | 10–12% |
| Sector Exposure | PVC Pipes & Fittings |
| Demand Driver | Real estate and infra |
The company benefits from housing demand and infrastructure expansion.
Think Investments PCC sold 1.37% stake in Arisinfra Solutions Ltd. for ₹13 crore, while Maheshvarsh Fincon acquired 0.6%. Despite intraday swings, the stock closed 4% higher.
The contrasting trades reflect liquidity churn rather than structural weakness.
| Sector | Institutional Flow | Market Reaction |
|---|---|---|
| Housing Finance | Mixed | Short-term correction |
| Electric Mobility | Positive | Upper circuit momentum |
| Infrastructure InvIT | Balanced | Price stabilization |
| Industrial Manufacturing | Gradual accumulation | Steady gains |
The data suggests capital rotation from mature financials toward emerging EV plays while infrastructure names consolidate near valuation lows.
• Home First Finance’s correction appears largely technical after promoter dilution, while institutional participation suggests continued long-term confidence in the business fundamentals.
• Zelio E Mobility’s upper circuit rally reflects strong high beta momentum following institutional entry, but investors should closely monitor scalability, competitive positioning, and execution capability in the EV segment.
• Capital flows provide important signals, but investment decisions should be backed by earnings visibility, balance sheet strength, and margin sustainability.
• Retail investors using platforms such as Zerodha, Groww, Upstox, and Angel One should combine block deal tracking with fundamental research before taking exposure.
• A balanced allocation across housing finance, electric mobility, and infrastructure can help capture sector rotation while reducing concentration risk.
• Block deals often indicate portfolio reshuffling rather than distress. The real insight lies in identifying where institutional capital is accumulating for future growth.
The February 26 block deals underscore a simple market truth: when promoters exit, volatility rises. But when institutions step in, opportunity may be forming. Capital does not disappear. It reallocates. The key for investors is understanding the direction of that flow.
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