Repco Home Finance Limited , a prominent player in the housing finance sector, has received a significant boost to its financial capabilities. The company's shareholders have approved an ambitious fundraising plan totaling ₹2,500.00 crore through private placement, signaling strong investor confidence and setting the stage for potential growth. Additionally, the company has declared a dividend of ₹4.00 per share.

Fundraising Details

The approved fundraising initiative comprises two key components:

1. Non-Convertible Debentures (NCDs): The company has been authorized to raise ₹1,500.00 crore through NCDs.
2. Commercial Papers (CPs): An additional ₹1,000.00 crore will be raised through the issuance of Commercial Papers.

Both instruments will be issued on a private placement basis, allowing Repco Home Finance to tap into institutional and high-net-worth individual investor pools.

Shareholder Approval and Dividend Declaration

The fundraising plan received overwhelming support from shareholders during the company's 25th Annual General Meeting (AGM). The meeting, conducted through video conferencing and other audio-visual means, saw active participation from shareholders and board members alike.

Repco Home Finance has declared a dividend of ₹4.00 per share, demonstrating the company's commitment to rewarding its shareholders while also pursuing growth opportunities.

Corporate Governance

The AGM also addressed other important matters, including:

• Adoption of financial accounts
• Re-appointment of Mr. C. Thangaraju as a director
• Appointment of a new Secretarial Auditor
• Approval for related party transactions with Repco Bank, the company's promoter

Market Implications

This fundraising approval and dividend declaration come at a time when the housing finance sector is witnessing dynamic changes. The ability to raise substantial funds through private placement suggests that Repco Home Finance continues to enjoy the trust of institutional investors, which could be seen as a positive indicator of the company's financial health and future prospects.

As Repco Home Finance moves forward with this significant fundraising initiative and dividend payout, market watchers will be keen to observe how the company balances shareholder returns with its growth strategy. The deployment of the raised funds and their impact on the company's competitive position in the housing finance industry will be of particular interest.

Investors and stakeholders will likely keep a close eye on the company's future announcements regarding the utilization of these funds and any subsequent effects on its financial performance and market standing.

Repco Home Finance , a prominent player in the housing finance sector, has reported a robust performance for the quarter, showcasing steady growth and improved asset quality. The company's loan book expanded by 7% year-on-year, reaching Rs. 14,690.00 crores, demonstrating its continued momentum in the housing finance market.

Strong Disbursements and Sanctions

The company achieved disbursements of Rs. 829.00 crores during the quarter, marking a significant increase from Rs. 680.00 crores in the same quarter last year. Sanctions also saw a substantial rise, climbing to Rs. 907.00 crores from Rs. 727.00 crores year-on-year. This growth in both disbursements and sanctions indicates a healthy demand for housing finance and Repco's ability to capitalize on market opportunities.

Financial Performance

Repco Home Finance reported a net profit of Rs. 108.00 crores for the quarter. The company's profitability metrics remained strong, with Return on Assets (ROA) at 2.90% and Return on Equity (ROE) at 14.00%. The Net Interest Margin (NIM) stood at a healthy 5.23%, while the spread was maintained at 3.27%.

Asset Quality Improvement

One of the highlights of the quarter was the significant improvement in asset quality. The Gross Non-Performing Assets (GNPA) ratio reduced to 3.30% from 4.30% in the previous comparable period, reflecting the company's effective risk management and collection strategies. The Net NPA ratio also improved, standing at 1.19%.

Dividend Declaration

In a move that will please shareholders, Repco Home Finance declared a 25% interim dividend, marking a significant milestone as the company celebrates its 25th year of operations.

Operational Highlights

The company operates through a network of 234 touch points across 12 states and 1 union territory. Tamil Nadu continues to be a strong market for Repco, contributing 60% of the total disbursements. This regional concentration highlights the company's strong presence and understanding of the South Indian market.

Future Outlook

Management has set ambitious targets for the fiscal year end, aiming to reach Rs. 4,000.00 crores in disbursements and Rs. 16,200.00 crores in Assets Under Management (AUM). Additionally, the company aims to further reduce its GNPA to 2.50%, indicating a continued focus on improving asset quality.

Financial Metrics

Repco Home Finance's performance this quarter demonstrates its resilience and growth potential in the competitive housing finance sector. With improved asset quality, strong disbursement growth, and ambitious future targets, the company appears well-positioned for continued success in the coming quarters.