Star Housing Finance Limited (SHFL) has announced the terms of its upcoming rights issue, aiming to raise up to Rs. 99.00 crores to bolster its capital base. The company plans to issue 6,14,16,404 fully paid-up equity shares at Rs. 16.00 per share, which includes a premium of Rs. 11.00 per share.

Rights Issue Details

Key Highlights

• The rights issue will increase SHFL's outstanding equity shares from 7,89,63,948 to 14,03,80,352, assuming full subscription.
• Eligible shareholders can trade their rights entitlements on the stock market until October 27, 2025.
• The company has arranged for the rights entitlements to be credited to shareholders' demat accounts before the issue opening date.

Financial Impact

The rights issue is set to inject significant capital into Star Housing Finance Limited, potentially strengthening its financial position in the housing finance sector. The additional funds could be utilized for expanding the company's loan portfolio, improving operational efficiency, or exploring new growth opportunities.

Management's Perspective

Kalpesh Dave, Executive Director & CEO of Star Housing Finance Limited, signed off on the rights issue announcement, indicating the management's commitment to this capital-raising initiative. The company views this as a strategic move to enhance its market position and create value for shareholders.

Investor Considerations

Shareholders of SHFL should note the following:

• The rights issue provides an opportunity to increase their stake in the company at a predetermined price.
• Those not wishing to subscribe can sell their rights entitlements in the market.
• The issue price of Rs. 16.00 per share offers a premium over the face value, reflecting the company's growth prospects.

Conclusion

Star Housing Finance Limited's Rs. 99.00 crore rights issue represents a significant development for the company and its shareholders. As the housing finance sector continues to evolve, this capital infusion could play a crucial role in SHFL's future growth and market positioning. Investors are advised to review the detailed terms in the Letter of Offer, which will be filed with BSE Limited and SEBI, before making investment decisions.

Star Housing Finance Limited (BSE: STARHFL) has taken a significant step towards strengthening its capital base. The company announced that it has received in-principle approval from BSE Limited for its proposed rights issue of equity shares, marking a crucial milestone in its capital raising efforts.

Approval Details

The approval was granted through a BSE letter with reference number LOD/RIGHT/AM/FIP/918/2025-26, dated September 19, 2025. This development was disclosed by Star Housing Finance in compliance with the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements Regulations, 2015.

Company's Disclosure

In an official communication to the BSE dated September 20, 2025, Star Housing Finance Limited provided details of the in-principle approval. The disclosure, signed by Kalpesh Dave, Executive Director & CEO of the company, emphasized the significance of this approval in the context of their proposed rights issue.

Implications for Shareholders

A rights issue allows existing shareholders to purchase additional shares at a discounted price, providing them with an opportunity to increase their stake in the company. For Star Housing Finance, this move could potentially lead to an influx of capital, which may be used for various purposes such as expansion, debt reduction, or strengthening the company's financial position.

Next Steps

While the in-principle approval is a crucial first step, investors should note that this does not guarantee the immediate commencement of the rights issue. The company will need to fulfill various regulatory requirements and finalize the terms of the issue before it can proceed with the actual offering.

Management's Perspective

Kalpesh Dave, Executive Director & CEO of Star Housing Finance Limited, who signed the disclosure notice, stated, "We are pleased to receive the in-principle approval from BSE Limited for our proposed rights issue. This is an important step forward in our capital raising plans, and we believe it will contribute to the long-term growth and stability of our company."

Investors and stakeholders are advised to keep an eye on further announcements from Star Housing Finance Limited regarding the details of the rights issue, including the price, ratio, and timeline, which are expected to be disclosed in due course.

As always, potential investors should conduct their own research and consider seeking professional financial advice before making investment decisions based on this development.