Star Housing Finance Limited has officially relocated its corporate office from Vashi to Andheri East, Mumbai, marking a strategic move in the company's operational setup. The relocation became effective from February 23, 2026, as communicated to BSE Limited on February 24, 2026.

Regulatory Compliance and Communication

The company fulfilled its regulatory obligations by informing BSE Limited about the office relocation in accordance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This communication followed an earlier intimation dated February 2, 2026, indicating the company's planned relocation.

Office Address Details

The corporate office transition involves a significant geographical shift within the Mumbai metropolitan region:

Strategic Location Advantages

The new office location at The Summit Business Park in Andheri East offers enhanced connectivity advantages, being situated near the W.E. Highway Metro Station. This positioning provides improved accessibility for stakeholders and employees compared to the previous Vashi location at Platinum Techno Park.

Corporate Governance

The relocation announcement was formally signed by Nachiketa Purohit, Company Secretary & Compliance Officer, ensuring proper corporate governance protocols were followed. The company has requested BSE Limited to update their records and website to reflect the new corporate office address, maintaining transparency in corporate communications.

Star Housing Finance Limited has received a significant credit rating downgrade from CARE Ratings Limited, with its long-term bank loan facilities being downgraded from CARE BBB- to CARE D on February 20, 2026. The downgrade affects facilities worth INR 300 crore and reflects the company's recent default on debt obligations.

Rating Downgrade Details

The rating action was prompted by Star Housing Finance's delays in term loan instalments to six lenders, with payment delays ranging from 1 to 11 days in February 2026. According to CARE Ratings, this default stemmed from severe liquidity stress within the company.

Liquidity Crisis and Underlying Causes

The company's liquidity stress was primarily triggered by an investor's accelerated redemption of non-convertible debentures (NCDs). The NCDs were recalled in December 2025 following the resignation of the company's Chief Financial Officer, with the position remaining vacant. Despite no breach of covenants on the NCDs, the investor proceeded with the recall, forcing the company to agree to prepayment.

Star Housing Finance's liquidity position deteriorated sharply from a reasonable buffer of ₹20.00 crore in unencumbered cash and equivalents as of December 30, 2025, to just ₹2.91 crore as of February 19, 2026. This dramatic decline occurred against scheduled debt obligations of ₹17.60 crore due in March 2026.

Company Response and Current Status

Star Housing Finance's management has confirmed that all overdue amounts have been cleared, and the company claims to have made advance payments of debt instalments due in February 2026. However, CARE Ratings noted that the company misrepresented facts by failing to disclose the NCD recall during surveillance in January 2026 and not reporting it to stock exchanges.

The 9MFY26 financials highlighted the company's liquidity stress, with the auditor noting delays in salary payments to employees and drawing attention to the strained cash flow position. The auditor indicated that the company may need continued reliance on external funding, though the limited review report was not qualified.

Financial Performance Overview

Star Housing Finance operates as a small-sized housing finance company focusing on the affordable housing segment, serving low-and-middle-income borrowers across six states through over 38 branches. The company's assets under management stood at ₹570.00 crore as of December 31, 2025.

Rating Outlook and Future Implications

CARE Ratings has indicated that positive rating action could be considered if the company demonstrates timely servicing of debt obligations for a minimum of three continuous months. However, the current rating downgrade to "default" status is expected to trigger breach of lending covenants, further straining the company's already fragile cash position.

The rating agency has classified the company's liquidity as "Poor," reflecting the significant impairment to both financial and business risk profiles due to the sharp decline in liquidity buffers following the NCD recall.

Source: None/Company/INE526R01028/ecfed5e1-c644-4b3e-8707-175c91035c8a.pdf