Mumbai (Maharashtra) [India], Aug 8: 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 the capital market, and president of ANMI (Association of National Exchanges Members of India), a pan India body comprising the trading members across the 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. It provides Star HFL with an opportunity to increase AUM by further building liability on the balance sheet. This equity infusion is a part of a series of capital raises in the Company where in the past, the Equity has been subscribed mostly by professionals in the BFSI space.
Speaking on occasion, Mr. Shah said,” One feels that the next step up in the growth of the 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 the 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 at 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 to 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.”
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.
If you have any objection to this press release content, kindly contact pr.error.rectification@gmail.com to notify us. We will respond and rectify the situation in the next 24 hours.
Comments are closed.