Rights On Hold: Star Housing Finance Committee Defers ₹98 Crore Issue Amid Strategic Review

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Star Housing Finance Ltd has postponed its ₹98.27 crore rights issue, originally set to open on October 10, 2025. The Rights Issue Committee is reassessing timing and strategy amid market conditions. The offering aimed to fund business expansion and capital needs. A revised launch date is expected following internal review.

Star Housing Finance Ltd has announced a delay in its ₹98.27 crore rights issue, originally scheduled to open on October 10, 2025. The Rights Issue Committee cited the need for further strategic review and market alignment before proceeding with the offering, which was aimed at strengthening the company’s capital base and expanding its affordable housing portfolio.

Issue Highlights

- The rights issue was set to offer 6,14,16,404 equity shares at ₹16 per share, with a face value of ₹5

- Entitlement ratio was fixed at 7:9, meaning shareholders would receive 7 rights shares for every 9 fully paid-up equity shares held on the record date of September 30, 2025

- The issue was to be listed on the Bombay Stock Exchange (BSE), with full payment required at the time of application

- Proceeds were earmarked for augmenting long-term capital and meeting funding requirements for business expansion and general corporate purposes

Reason For Delay

- The Rights Issue Committee has opted to defer the launch to reassess timing and investor sentiment amid evolving market conditions

- Sources suggest the company is reviewing its capital deployment strategy and evaluating alternate funding options to optimize shareholder value

- No revised timeline has been announced, and the company is expected to issue a formal update once internal assessments are complete

Company Performance

- Star Housing Finance reported a 54% increase in total income and a 25% rise in profit after tax for FY25 compared to FY24

- Assets under management (AUM) stood at ₹555 crore, with a net interest margin of 6.61%

- The company operates across 48 locations, focusing on underserved segments through retail home loans under PMAY and Priority Sector Lending schemes

Market Outlook

- Analysts believe the delay may be a tactical move to align the offering with more favorable market conditions and investor appetite

- The company’s strong fundamentals and focus on financial inclusion continue to position it well for long-term growth

- Stakeholders are watching for updates on revised dates and potential changes in issue structure

Sources: Chittorgarh, IPO Watch, Bigul Blog

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