Star Housing Finance Limited (SHFL) has announced the withdrawal of its proposed rights issue, citing insufficient subscription as the primary reason. The decision was made by the company's Rights Issue Committee during a meeting held on November 26, 2025.

Rights Issue Details

The now-withdrawn rights issue had the following key features:

Reason for Withdrawal

The company stated that the rights issue failed to receive the minimum subscription required under Regulation 86(2) of SEBI (Issue of Capital Disclosure Requirements) Regulations, 2018. As a result, the Rights Issue Committee decided to withdraw the proposed rights issue.

Impact and Next Steps

1. Capital Raising Plans: The withdrawal may affect SHFL's immediate capital raising plans.

2. Shareholder Impact: Existing shareholders who were eligible to participate in the rights offering will not have the opportunity to increase their stake in the company at the discounted price.

3. Fund Unblocking: SHFL has initiated the process of unblocking application amounts for investors who had subscribed to the issue. The company has instructed all banks to unblock these funds.

4. Investor Communication: Shareholders whose application amounts have not been unblocked are advised to contact the Registrar to the Issue, Bigshare Services Private Limited, at rightsissue@bigshareonline.com .

Company Response

Star Housing Finance Limited has stated that it will coordinate with the respective banks, in consultation with the Registrar, to ensure that all blocked amounts are released at the earliest. The company has also disclosed this information on its website ( www.starhfl.com ) for transparency.

The withdrawal of the rights issue reflects the company's adherence to regulatory compliance and transparent communication with its shareholders. Star Housing Finance may need to reassess its capital requirements in light of this development.

Star Housing Finance Limited (SHFL), a BSE-listed company focused on semi-urban and rural housing finance, has reported robust financial performance for the second quarter and first half of FY2025-26. The company's results showcase steady growth in key financial metrics and asset quality maintenance.

Financial Highlights

SHFL reported a 21.33% year-on-year increase in interest income for the half-year ended September 30, 2025. The company's Assets Under Management (AUM) grew by 9.55% to Rs. 567.27 crores, demonstrating consistent expansion in its loan portfolio.

Asset Quality

The company has maintained a stable asset quality profile:

• Gross Non-Performing Assets (GNPA) stood at 1.65%
• Net Non-Performing Assets (NNPA) were at 1.16%

These figures indicate SHFL's prudent risk management practices in the challenging economic environment.

Profitability

For the first half of FY2025-26, Star Housing Finance reported:

• Profit Before Tax (PBT) of Rs. 4.08 crores
• Profit After Tax (PAT) of Rs. 3.17 crores

Balance Sheet Strength

As of September 30, 2025, SHFL's financial position remained strong:

• Net Worth stood at Rs. 146.54 crores
• Leverage levels were maintained at 2.67x

Business Performance

The company disbursed Rs. 30.56 crores during the quarter under review, contributing to its AUM growth. The Net Interest Margin (NIM) for the period was reported at 7.65%, indicating efficient management of interest-earning assets.

Management Commentary

Kalpesh Dave, Director & CEO of Star Housing Finance Limited, stated, "Our focus has been on disciplined underwriting and efficient liability management. As we prepare for the next phase of expansion, our commitment remains firmly anchored in enabling affordable home ownership for first-time buyers and creating long-term value for all stakeholders."

Ratings and Future Outlook

Star HFL maintains a BBB Stable rating from CARE & India Ratings, reflecting its stable financial profile. The company's strong funding pipeline and established relationships with banks and financial institutions are expected to support its future growth plans.

Star Housing Finance Limited continues to demonstrate resilience and growth in the affordable housing finance sector, with a clear focus on serving semi-urban and rural markets. The company's performance in H1 FY2025-26 sets a positive tone for its future prospects in the evolving housing finance landscape.