Repco Home Finance Gears Up for Growth with ₹2,000 Crore Fundraising Drive

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Repco Home Finance Ltd has announced that its board will consider a proposal to raise funds through the issuance of Non-Convertible Debentures (NCDs) and Commercial Paper (CP), aiming to strengthen its financial position and support future growth.

Key Highlights:

Fundraising Proposal: The board is set to evaluate raising funds by issuing NCDs and CPs, with recent approvals indicating potential aggregate amounts of up to ₹1,000 crore each for NCDs and CPs, to be executed on a private placement basis.
Purpose of Fundraising: The proposed capital infusion is intended to bolster the company’s lending capacity, support its expanding loan book, and provide greater financial flexibility for business operations.
Strong Financial Performance: Repco Home Finance recently reported a 31.63% year-on-year increase in net profit for Q4 FY24, reflecting robust demand for housing finance and efficient cost management.
Growing Loan Book: The company’s assets under management (AUM) reached ₹13,513 crore at the end of March 2024, with housing loans comprising 74.7% of the portfolio and home equity products making up the remaining 25.3%.
Retail-Focused Lending: All loans disbursed by Repco Home Finance are retail loans to individuals, with a balanced mix between self-employed (51.4%) and salaried (48.6%) borrowers.
Operational Metrics: The company maintains a healthy loan spread of 3.4%, a return on assets of 3.0%, and a return on equity of 15.8%, underscoring its operational efficiency and profitability.
Strategic Outlook: The planned fundraising aligns with Repco Home Finance’s strategy to capitalize on growth opportunities in the affordable housing segment and maintain a strong capital base.