Star Housing Finance Limited faces a critical juncture as it schedules a debenture holders meeting following a payment default on its Non-Convertible Debentures. The company has been unable to meet payment obligations on NCDs worth ₹20 crores, prompting formal proceedings by the debenture trustee.

Payment Default and Extension Request

The payment of interest and outstanding principal on the debentures was due on April 25, 2026, following a Put Option notice issued on March 11, 2026, by Vardhman Trusteeship Private Limited. The actual due date fell on April 27, 2026, as April 25 was a holiday.

Star Housing Finance has requested the debenture trustee to grant an extension of fourteen working days to complete the payment. The company cited ongoing efforts to infuse liquidity through the onboarding of a prospective new investor as the reason for the extension request.

Debenture Holders Meeting Details

Vardhman Trusteeship Private Limited has convened a meeting of debenture holders scheduled for Friday, May 22, 2026, at 4:00 p.m. through video conferencing. The meeting will address several critical matters:

• Negative consent for proceeding with enforcement of security
• Positive consent for signing the Inter Creditor Agreement if approached by other lenders
• Other actions as decided by debenture holders
• Disclosure regarding further action if requisite consents are not received

Consent Requirements and Enforcement

The enforcement of security or filing of recovery suit requires specific consent thresholds from debenture holders. The debenture trustee has outlined clear requirements for any enforcement action.

The debentures in question are rated, listed, secured, redeemable Non-Convertible Debentures issued on a private placement basis under the Debenture Trust Deed dated October 18, 2023.

Current Status and Next Steps

Vardhman Trusteeship Private Limited has been following up with Star Housing Finance for payment confirmation but has not received any confirmation from the issuer. The trustee has also approached Bigshare Services Private Limited, acting as the Registrar and Transfer Agent, and State Bank of India for payment confirmation, with information still awaited.

The notice specifies that if the default is cured between the date of notice and the proposed meeting date, the meeting will stand cancelled. The meeting link will be provided separately and hosted on the trustee's website at vardhmantrustee.com, with debenture holders advised to visit regularly for updates.

Star Housing Finance Limited has announced the appointment of external auditors to conduct a comprehensive review of a National Housing Bank (NHB) Snap Audit Report, reinforcing its commitment to transparency and corporate governance standards.

External Auditor Appointment

The company has engaged M/s. Parikh & Associates, Chartered Accountants, an Ahmedabad-based firm, as independent auditors for the comprehensive external audit. This appointment follows instructions from the Board of Directors and builds upon the company's earlier intimation under regulation 30 of SEBI LODR regulations dated April 3, 2026.

Corporate Governance Commitment

The appointment reflects the Board's and Management's dedication to ensuring transparency, accountability, and adherence to the highest standards of corporate governance. The decision demonstrates proactive measures taken by the company to address regulatory requirements and maintain stakeholder confidence.

Current Status and Clarification

Star Housing Finance Limited has provided important clarification regarding the nature of the review. The company emphasized that the matter under review remains at the stage of suspicion, with the existence of irregularities not yet substantiated. The external audit is specifically intended to establish facts in an objective and independent manner.

Regulatory Compliance

The intimation was made under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The communication was signed by Nachiketa Purohit, Company Secretary & Compliance Officer, demonstrating proper adherence to regulatory disclosure requirements.