Star Housing Finance Limited (Star HFL) (Scrip code: BOM: 539017), a rural focused HFC has raised $2.7 mn capital through preferential allotment. The capital has been subscribed by Arika Securities Pvt Ltd and Colo Securities Pvt Ltd. This capital raise has been completed through the initiative of Mr. Kamlesh Shah. Mr. Shah is MD of Share India Securities Ltd, a three-decade veteran in capital market, president of ANMI (Association of National Exchanges Members of India), a pan India body comprising of the trading members across country of (NSE) (BSE), (MCX) and other exchanges having national presence and he is also on the advisory committee of BSE Limited and India INX.
This raise has augmented the net worth past Rs.85 crs strengthening the capital adequacy and rationalizing the leverage levels. This provides Star HFL an opportunity to increase AUM by further building liability on the balance sheet. This equity infusion is a part of series of capital raise in the Company where in past the equity has been subscribed mostly by professionals in BFSI space.
Speaking on the occasion, Mr. Shah said," One feels that next step up in growth of Indian mortgage market should come from rural India riding on infrastructure development, digitization, reverse migrated population and nuclearization of rural families. The resultant increase in housing demand should benefit rural focused niche HFCs like Star HFL that cater to these geographies leveraging on these tailwinds. I wish young team of HFC professionals at Star HFL the very best and look forward as the Company grows in its journey from hereon."
Mr. Kalpesh Dave, Head Corporate Planning and Strategy a Star HFL said, "We are happy to have successfully raised capital through the initiative of market veteran Mr. Shah. This capital will be deployed for growth. With this capital expansion we look forward towards re-rating based on business and operational parameters. We shall work towards building a solid base to enhance leverage with an objective to achieve asset size of Rs.500 crs (systemically important home finance company) as the first milestone."
Star HFL has evolved in its journey as a professionally managed HFC catering to home owning aspirations of first-time home buyers in its operational rural/semi urban geographies.
Mr. Kalpesh Dave added, "Star HFL now meets 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. The Company has also initiated actionable for next capital raise, subject to all approvals so as to cross net worth of Rs.100 crs in the current financial year."
Shares of Star Housing Finance Ltd was last trading in BSE at Rs. 159.60 as compared to the previous close of Rs. 162.45. The total number of shares traded during the day was 84280 in over 286 trades.
The stock hit an intraday high of Rs. 163.95 and intraday low of 158.05. The net turnover during the day was Rs. 13533480.00.