SYNOPSIS:
Star Housing Finance withdrew its Rs. 98.3-crore rights issue after failing to receive the minimum subscription, with the Rights Issue Committee approving the cancellation and initiating the unblocking of all investor application funds.
During Wednesday’s trading session, shares of a semi-urban and rural-focused home finance company hit a 20 percent lower circuit to a new 52-week low on BSE, after the company announced withdrawing the proposed rights issue.
With a market cap of Rs. 178 crores, shares of Star Housing Finance Limited hit a 20 percent lower circuit and closed in the red at Rs. 12.67 on BSE, as against its previous closing price of Rs. 15.83. The stock has delivered negative returns of around 66 percent in the last one year, and has fallen by more than 25 percent in a month.
What’s the News
According to the latest filings with the BSE, Star Housing Finance Limited has announced the withdrawal of its proposed rights issue. The company had earlier, through its Letter of Offer dated 9th October 2025, detailed a plan to raise up to nearly Rs. 98.3 crore funds by issuing 6,14,16,404 equity shares of face value Rs. 5 each at a price of Rs. 16 per share (including a premium of Rs. 11). The rights issue was offered in the ratio of 7 rights shares for every 9 equity shares held as on the record date, with the subscription window opened from 27th October 2025 to 25th November 2025.
The company has now informed that the issue is being withdrawn due to non-receipt of the minimum required subscription. The Rights Issue Committee, in its meeting held today, has considered and approved the decision to withdraw the proposed Rights Issue, and instructions are being issued to all banks to initiate the unblocking of application funds.
Financials & More
Star Housing Finance reported a marginal growth in revenue from operations, experiencing a year-on-year increase of more than 14 percent, from Rs. 22 crores in Q2 FY25 to Rs. 25.15 crores in Q2 FY26. In contrast, the company’s net profit decreased during the same period from Rs. 3.06 crores to Rs. 1.8 crores, representing a decline of around 41 percent YoY.
As of H1 FY26, the company’s Assets Under Management (AUM) expanded 9.5 percent year-on-year to Rs. 567.5 crores, while interest income registered robust growth of 21.33 percent YoY, and the Net Interest Margin (NIM) remained healthy at 7.65 percent.
Star Housing Finance Limited, previously known as Akme Star Housing Finance Limited, is an affordable housing finance company registered with the National Housing Bank (NHB).
The company is primarily engaged in the business of providing loans to individuals, corporations and developers for the purchase, construction, development and repair of houses, apartments and commercial properties in India.
Written by Shivani Singh
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