Star Housing Finance raises $2.7 million through preferential allotment of shares

1 Aug 2022 , 09:18 AM

Star Housing Finance Limited (Star HFL), a rural focused HFC has raised $2.7 million capital through preferential allotment and has increased the net worth to more than Rs85 crore, the company informed in a filing. 

This equity infusion is a part of series of fund raise. This was last being done in FY22 and was subscribed by retail investors, mostly professionals from BFSI space, the company said.

In a filing, the company further informed that this raise has further strengthened the capital adequacy and has moderated the leverage levels of the Company. This results in further room to increase borrowings and aid in building AUM in line with the Company’s growth rationale.

Speaking on the 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, Star HFL will met the minimum net worth quantum and shall await to meet the period & other criteria needed for listing on the NSE, subject to relevant regulatory approvals.”

At around 9:18 AM, Star Housing Finance was trading at Rs160 per share lower by 0.56% on the BSE.