Star Housing Finance Board Approves Capital Raise Of Rs 60 Cr
Housing Finance Limited (Star HFL), a BSE-listed rural-focused retail home finance company, has announced that it has received board approval for capital raise of INR 60 crore, subject to shareholders’ approval, to fuel its growth and expansion plans. Star HFL will be raising the capital from a diverse set of investors, including High-Net-Worth Individuals (HNIs), institutional investors, and a prominent family house via issuance of convertible warrants through preferential allotment on private placement basis This investment is subject to shareholder & requisite regulatory approvals.The company plans to use the capital to double its growth trajectory, bolster its brand presence, and attract top-tier talent to strengthen its leadership team, diversify its loan portfolio, invest in cutting-edge technology solutions, and intensify its market presence across critical regions. Housing Finance Limited CEO, of Star HFL said, "We are delighted to have received this significant investment from our esteemed investors. This funding will be pivotal in accelerating our growth plans, enabling us to reach new milestones and serve our customers better. We shall work towards building a solid base to enhance leverage to achieve an asset size of Rs 500 crore (Systemicall y Important Home Finance Company) as the first milestone and beyond." Star Housing Finance Limited is committed to enhancing the customer experience, streamlining loan processing, and introducing innovative products tailored to meet the evolving needs of prospective economically weaker section/low-income group (EWS/LIG) home buyers. This substantial infusion of capital is expected to have a multiplier effect on the company's overall performance, unlocking previously untapped markets and expanding its customer base. With a fortified financial foundation, Star Housing Finance Limited is strategically positioned to harness emerging opportunities in the affordable housing finance sector and substantially contribute to the nation's housing development goals. The company’s assets under management (AUM) as of Sep 30, 2023, increased 110% year-on-year to Rs 319.43 crore. The company disbursed Rs 108.30 crore during H1 FY2023-24, registering a year-on-year growth of 49%. As of Sep 30, 2023, PAR (0+ days past due) has reduced to 4.52%, of which gross non-performing assets (NPA) as of Sep 30, 2023 stands at 1.46% and net NPA as of Sep 30, 2023 stands at 1.08%.
Tags : Housing Finance Limited cutting-edge technology solutions Star Housing Finance Limited institutional investors