Star Housing Finance Limited (Star HFL) has announced a capital raise of INR 60 crore, pending approval from shareholders, to support its growth and expansion initiatives. The company is seeking investments from diverse stakeholders, including High-Net-Worth Individuals (HNIs), institutional investors, and a prominent family house. The capital infusion will be executed through the issuance of convertible warrants via preferential allotment on a private placement basis, subject to regulatory and shareholder approvals. The funds raised will be utilized to double Star HFL's growth trajectory, bolster its brand presence, and attract top-tier talent to strengthen its leadership team. The company also aims to diversify its loan portfolio, invest in advanced technology solutions, and extend its market reach across key regions.

Mr. Kalpesh Dave, the CEO of Star HFL, expressed satisfaction with the substantial investment, highlighting its crucial role in accelerating growth plans. He mentioned, "This funding will play a pivotal role in expediting our growth strategies, allowing us to achieve new milestones and better serve our customers. We aim to establish a strong foundation to enhance leverage, targeting an asset size of Rs 500 crore as our initial milestone and beyond".

Star Housing Finance Limited is dedicated to improving customer experience, streamlining loan processing, and introducing innovative products tailored to the changing needs of economically weaker sections and low-income group (EWS/LIG) home buyers. The significant capital injection is expected to have a ripple effect on the company's overall performance, unlocking previously untapped markets and expanding its customer base. With a reinforced financial footing, Star Housing Finance Limited is strategically positioned to capitalize on emerging opportunities in the affordable housing finance sector and contribute significantly to the nation's housing development goals.

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

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