Star Housing Finance Limited raises $2.7 million in equity to expand its net worth and scale in rural areas
- ByStartupStory | August 2, 2022
A rural-focused HFC called Star Housing Finance Limited (Star HFL) (Scrip code: BOM: 539017) has expanded its net value to more than Rs 85 crores by raising $2.7 million through preferential allotment. This stock infusion is a part of a series of capital raises for the company, the most recent of which was completed in FY’22 and was supported mostly by professionals in the BFSI sector.
This raise has reduced the company’s leverage levels and significantly bolstered its financial sufficiency. It provides more room to raise borrowing amounts and helps to boost AUM in line with the company’s expansion goals. A group of knowledgeable home finance professionals from various places and business functions professionally manages the company.
Kalpesh Dave, Head of Corporate Planning and Strategy said, “This capital infusion puts Star HFL ready to get re-rated as the deployment shall be for AUM scale up in rural geographies. With this fundraising, Star HFL has temporarily met the minimum net worth requirement and will now wait to fulfil the remaining requirements for listing on the NSE platform, subject to applicable regulatory and statutory clearances. The Company has started taking steps for the next capital raise, pending all permissions, in accordance with the business plan, with the goal of surpassing a net worth of Rs. 100 crores in the current fiscal year.
About Star HFL
Star Home Financing Limited (Star HFL), originally Akme Star Housing Finance Company, is a BSE-listed housing finance company with an emphasis on rural areas. The business assists first-time EWS/LIG house buyers with housing financing for the acquisition or development of affordable dwelling units in rural and semi-urban areas. Star HFL is headquartered in Mumbai and is recognised as a Primary Lending Institution (PLI) under the Pradhan Mantri Awas Yojana (PMAY).
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