Star Housing Finance Limited (STARHFL) has announced a significant move to bolster its financial position through a rights issue of equity shares. The company's board of directors has given the green light to raise funds up to Rs. 99.00 crores, marking a notable development for existing shareholders and potential investors alike.

Rights Issue Details

The board has approved the issuance of fully paid-up equity shares with a face value of Rs. 5.00 each. This rights issue will be offered to eligible equity shareholders, with the record date for determining eligibility yet to be announced. The total fund-raising target is set at an amount not exceeding Rs. 99.00 crores (Rs. 99,00,00,000).

Key Approvals and Committee Formation

In addition to approving the rights issue, the board has taken several other important steps:

1. Approved the draft letter of offer for the rights issue.
2. Constituted a Rights Issue Committee to oversee the process.

The newly formed Rights Issue Committee comprises:

Pending Determinations

Several crucial aspects of the rights issue remain to be finalized, including:

• Issue price
• Rights entitlement ratio
• Record date
• Timing of the issue

These details will be determined by the board and/or the Rights Issue Committee in due course, subject to necessary regulatory approvals.

Regulatory Compliance

The company has emphasized that the rights issue will be conducted in accordance with applicable laws and regulations, including:

• Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018
• SEBI Listing Regulations
• Companies Act, 2013 and related rules

Investor Implications

This rights issue presents an opportunity for existing shareholders to increase their stake in Star Housing Finance Limited. However, investors should note that specific terms, including the price and entitlement ratio, are yet to be determined.

The move to raise capital through a rights issue could indicate the company's plans for expansion or strengthening its financial position. Shareholders and potential investors will likely keep a close eye on further announcements regarding the specifics of this rights issue.

Star Housing Finance Limited has announced a crucial board meeting scheduled for September 12, 2025, to discuss and potentially approve various fund-raising initiatives. The company aims to bolster its financial resources through a range of instruments, signaling a strategic move to strengthen its capital position.

Key Highlights

• Board Meeting Date: September 12, 2025
• Primary Agenda: Exploring fund-raising options
• Potential Methods:
  • Preferential allotment
  • Rights issue
  • Qualified Institutional Placements (QIPs)
  • American Depositary Receipts (ADR)
  • Global Depositary Receipts (GDR)
  • Foreign Currency Convertible Bonds (FCCB)
  • Other securities or a combination thereof

Fund Raising Strategy

The board will consider augmenting the company's financial resources by issuing equity shares or convertible instruments. This initiative may be executed in multiple tranches, allowing for a phased approach to capital raising. The flexibility in the proposed methods suggests that Star Housing Finance is keeping its options open to optimize its fund-raising strategy based on market conditions and investor appetite.

Trading Window Closure

In compliance with SEBI regulations and the company's internal Code of Conduct, Star Housing Finance has implemented a trading window closure:

• Effective: Immediately
• Duration: Until 48 hours after the conclusion of the board meeting
• Applicable to: Directors, promoters, designated persons, connected persons, and their immediate relatives

This measure is designed to prevent insider trading and ensure fair market practices during this sensitive period.

Implications for Investors

The upcoming board meeting and potential fund-raising activities could have significant implications for Star Housing Finance's future growth strategies and financial structure. Investors and market watchers will be keenly awaiting the outcomes of this meeting, as it may influence the company's market position and share value in the near term.

Star Housing Finance Limited has stated that this information is available on the company's official website ( www.starhfl.com ) for public reference. As the financial landscape continues to evolve, the company's proactive approach to exploring diverse funding avenues demonstrates its commitment to maintaining a robust capital base and supporting its operational and growth objectives.