Star Housing Finance raises $2.7 million capital via preferential allotment

8 Aug 2022 , 09:54 AM

Star Housing Finance Limited (Star HFL) has raised $2.7 million capital through preferential allotment. The company informed that 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 Kamlesh Shah, MD of Share India Securities Ltd.

This raise has augmented the net worth past Rs85 crore 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, 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 rise in housing demand should benefit rural focused niche HFCs such as Star HFL that cater to these geographies leveraging on these tailwinds. I wish young team of HFC professionals at Star HFL good luck and look forward as the Company grows in its journey from hereon.”

At around 9:57 AM, Star Housing Finance was trading at Rs154.05 per share higher by 0.51% as against previous closing of Rs157.25 per share on the BSE.