Aavas Financiers Limited , a prominent housing finance company, has received shareholder approval for several key initiatives during its 15th Annual General Meeting (AGM) held on September 16, 2025. The company, which focuses on home loans and MSME financing for rural and semi-urban customers, has secured backing for significant financial and operational decisions.

NCD Issuance Approved

Shareholders have given the nod to raise up to ₹8,500.00 crore through the issuance of Non-Convertible Debentures (NCDs) on a private placement basis. This fundraising initiative is set to take place over the next year, concluding by September 15, 2026. The approval allows for the issuance of NCDs in one or more tranches, including subordinate debentures, bonds, and other debt securities.

New ESOP Plan Introduced

The AGM also saw the approval of the 'Aavas Financiers Limited – Equity Stock Option Plan 2025' (ESOP-2025). This new plan encompasses a total of 23,74,191 exercisable options, each representing one equity share with a face value of ₹10.00.

Board Composition and Remuneration Changes

Several changes to the company's board composition were approved:

• Appointment of five Non-Executive Nominee Directors for five-year terms:

  1. Mr. Elcid Vergara
  2. Mr. Anant Jain
  3. Mr. Nikhil Omprakash Gahrotra
  4. Mrs. Neha Sureka
  5. Mr. Siddharth Tapaswin Patel

• Revision in the remuneration of Mr. Sachinderpalsingh Jitendrasingh Bhinder, Managing Director & Chief Executive Officer

Other Key Approvals

• Appointment of M/s. Chandrasekaran Associates as Secretarial Auditors for a five-year term from FY 2025-26 to FY 2029-30
• Increase in borrowing powers under Section 180(1)(c) of the Companies Act, 2013
• Creation of charges on company assets to secure borrowings under Section 180(1)(a) of the Companies Act, 2013

Market Performance

As of the latest available information, Aavas Financiers' shares closed at ₹1,649.40, reflecting a 11.30% decline over a six-month period.

These strategic decisions aim to strengthen Aavas Financiers' financial position and operational capabilities as it continues to serve its target market in rural and semi-urban areas of India.

Aavas Financiers , an affordable housing finance company, has seen its stock gain 7% over the past 10 trading sessions, partially recovering from a decline following its recent quarterly results announcement. The company's stock performance reflects a mix of challenges and resilience in the face of policy changes and market conditions.

Recent Stock Performance

The stock's recent 7% gain has helped to mitigate the overall decline, which now stands at 5% since August 12 when the company reported its quarterly numbers. This recovery suggests that investors may be finding renewed confidence in Aavas Financiers' long-term prospects despite the subdued quarterly performance.

Impact of Policy Changes on Financial Results

Aavas Financiers' recent quarterly performance was notably affected by a change in its disbursement recognition policy, which had a significant impact on reported figures:

• Reported disbursements fell 5% year-on-year to ₹1,145.00 crore
• Under the previous policy, the company would have shown double-digit growth in disbursements

Key Financial Metrics

Despite the challenges, Aavas Financiers reported growth in several key areas:

Asset Quality and Growth Outlook

The company faced some headwinds in terms of asset quality and has adjusted its growth expectations:

• Gross non-performing asset ratio increased by 20 basis points to 1.20%
• AUM growth guidance reduced to 18-20% for FY26, down from earlier expectations of 20-25%
• Previous year's AUM growth was 22%

Operational Footprint

Aavas Financiers maintains a strong presence in tier-three regions:

• Operates 397 branches across 14 states
• 80% of branches located in tier-three areas

Analyst Perspective

IDBI Capital has shown confidence in Aavas Financiers' potential:

• Upgraded rating to 'buy' from 'hold'
• Adjusted target price to ₹2,250.00 from ₹2,340.00

Current Trading

As of Wednesday, Aavas Financiers stock was trading at ₹1,633.20.

The recent stock performance of Aavas Financiers reflects a complex interplay of policy changes, market conditions, and investor sentiment. While the company faces challenges in maintaining its previous growth trajectory, its ability to grow key financial metrics and the recent stock price recovery suggest resilience in its business model. Investors and analysts will likely continue to monitor the company's performance closely, particularly its ability to navigate the current economic environment and capitalize on opportunities in the affordable housing finance sector.