Star Housing Finance to Raise INR 60 Crore for Growth and Expansion Initiatives

• ByStartupStory     |    November 11, 2023

Star Housing Finance Limited (Star HFL) has announced a capital raise of INR 60 crore, pending shareholders’ approval, to support its growth and expansion initiatives. The company aims to attract investments from a diverse set of stakeholders, including High-Net-Worth Individuals (HNIs), institutional investors, and a prominent family house. The capital infusion will be facilitated through the issuance of convertible warrants via preferential allotment on a private placement basis, subject to regulatory and shareholder approvals.

The funds raised are earmarked to double Star HFL’s growth trajectory, enhance its brand presence, and attract top-tier talent to fortify its leadership team. The company plans to diversify its loan portfolio, invest in cutting-edge technology solutions, and expand its market presence across crucial regions.

Mr. Kalpesh Dave, CEO of Star HFL, expressed delight at the significant investment, emphasizing its pivotal role in accelerating growth plans. He stated, “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 (Systemically Important Home Finance Company) as the first milestone and beyond.”

Star Housing Finance Limited remains committed to enhancing the customer experience, streamlining loan processing, and introducing innovative products tailored to meet the evolving needs of economically weaker sections and low-income group (EWS/LIG) home buyers.

The substantial capital infusion is expected to have a multiplier effect on the company’s overall performance, unlocking previously untapped markets and expanding its customer base. With a reinforced financial foundation, Star Housing Finance Limited is strategically positioned to harness emerging opportunities in the affordable housing finance sector and significantly contribute to the nation’s housing development goals.

As of September 30, 2023, the company’s assets under management (AUM) increased by 110% year-on-year to Rs 319.43 crore. During H1 FY2023-24, Star HFL disbursed Rs 108.30 crore, registering a year-on-year growth of 49%. The Portfolio at Risk (PAR) reduced to 4.52%, with gross non-performing assets (NPA) standing at 1.46% and net NPA at 1.08% as of September 30, 2023.

Star Housing Finance Limited, a BSE-listed rural-focused housing finance company, has been operational in the low-cost housing finance space since 2009. The company provides long-term housing finance assistance to EWS/LIG families for the purchase/construction of low-cost housing units in its operational geographies, including states such as Maharashtra, Madhya Pradesh, Gujarat, Rajasthan, NCR, and Tamil Nadu. Registered as a Primary Lending Institution (PLI) under the Pradhan Mantri Awas Yojana (PMAY), Star HFL has received subsidies for qualified customers under the CLSS scheme. The company’s Registered & Corporate Office is located in Mumbai, Maharashtra.

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