Micro-cap stock that provides long term housing finance assistance to low income group families jumped 4 percent in the day’s trade, after its board of directors approved raising of Rs. 60 Crores capital by way of private placement to fuel its growth and expansion plans.
At 12:45 p.m the shares of Star Housing Finance Limited were trading at Rs. 77.99 up 4.13 percent from its previous day close price of Rs. 74.90 and its market capitalization is Rs. 600 Crores.
As per the company’s filing, the Board of Directors of Star Housing finance Limited have considered and approved the proposal for raising capital of upto Rs. 60 Crores by way of issuance of 93,78,500 convertible warrants through private placement at a price of Rs. 64, each warrant is eligible to be convertible into equity shares.
The company plans to use the capital to double its growth trajectory, bolster its brand presence, attract top-tier talent to strengthen its leadership team, diversify its loan portfolio, invest in cutting-edge technology solutions, and intensify its market presence across critical regions.
The company’s revenue grew 88.73 percent from Rs. 18.72 Crores in FY22 to Rs. 35.33 Crores in FY23, accompanied by increasing profits of Rs. 0.62 Crore to Rs. 6.98 Crore.
It has reported a return on equity (ROE) of 8.45 percent and a return on capital employed (ROCE) of 9.46 percent, its profitability ratios are increasing year on year.
According to the latest shareholding data available for the September 2023 quarter, the company’s Promoters hold 20.62 percent stake, the Domestic Institutional Investors hold 0.21 percent and the Foreign Institutional Investors (FII) hold 1.04 percent.
Star Housing Finance Limited is a rural focused housing finance company, it provides long term housing finance assistance to low income group families towards purchase/construction of affordable housing units in its operational geographies.
Written by: Bharath K.S
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