Mumbai (Maharashtra) [India], August 1 (ANI/PNN): Star Housing Finance Limited (Star HFL) (Scrip code: BOM: 539017), a rural-focused HFC, has raised USD 2.7 mn in capital through preferential allotment and has increased its net worth to more than Rs 85 crs.
This equity infusion is a part of a series of capital raise in the Company, the last being done in FY'22, subscribed by retail investors, mostly professionals from the BFSI space.
This raise has further strengthened the capital adequacy and moderated the leverage levels of the Company. It results in further headroom to increase borrowings and aid in building AUM in line with the Company's growth objectives.
Speaking on occasion, Kalpesh Dave, Head - Corporate Planning and Strategy, said, "This capital infusion makes Star HFL ready to get re-rated as the deployment shall be for AUM scale up in rural geographies. In the interim, with this raise, Star HFL has met the minimum net worth quantum and shall await to meet the period & other criteria needed for listing on the NSE platform, subject to relevant regulatory/statutory approvals. In line with the business plan, the Company has initiated actionable for the next capital raise, subject to all approvals, so as to cross net worth of Rs. 100 crs in the current financial year.
We look forward to participation by like-minded investors as the Company charts its growth."
Star HFL is operational in rural/semi-urban geographies through physical/digital points of presence manned by HFC professionals. The Company has set up relevant infrastructure to provide credit assistance to first-time rural home buyers. Star HFL has a relationship with 11 lenders across public sector Banks, Financial Institutions and the National Housing Bank.
Kalpesh Dave added, "Star HFL shall grow its retail book in existing and new geographies. As a part of our scale-up plan, we are setting up co-lending, digital lending and rural housing loan verticals. We see this infusion strategically to achieve our asset side build-up.
We look forward to achieving an asset size of more than Rs. 500 crs to become a systemically important home finance company as the first milestone. We remain committed to providing a sustainable return to our stakeholders as a professionally managed company".
Star Housing Finance Limited (Star HFL), formerly known as Akme Star Housing Finance Company, is a BSE listed (Scrip code: BOM: 539017) rural-focused housing finance company. The Company operates in rural / semi-urban geographies to provide housing finance assistance to first-time EWS/LIG home buyers for the purchase/construction of low-cost housing units.
The Company is professionally managed by a team of experienced housing finance experts across locations and business functions. Star HFL is registered as a Primary Lending Institution (PLI) under the Pradhan Mantri Awas Yojana (PMAY) and is headquartered in Mumbai.
This story is provided by PNN. ANI will not be responsible in any way for the content of this article. (ANI/PNN)