Star Housing shares rise 4% after Q1 results, fundraising plans

Shares of Star Housing Finance gained more than 4 per cent during the early trading session on Monday after the company announced a strong performance in the June 2023 quarter, dividend for the year and fundraising plans through various exchange filings.

For the Q1 FY24, Start Housing Finance reported a 122 per cent rise in the net profit on a year-on-year (YoY) basis to Rs 1.55 crore, compared to a net profit of Rs 0.70 crore in the year ago period. The total income for the quarter ended June 30, 2023 almost doubled to Rs 12.29 crore.

The total asset under management (AUM) of the rural focused retail home finance company increased 135 per cent to Rs 271.62 crore from Rs 116.32 crore during the period under review, while its disbursement rose more than 26 per cent to Rs 34.67 crore, compared to Rs 27.51 crore in the year ago period.

Shares of Star Housing Finance surged more than 4 per cent to Rs 61.70 on Monday, before the stock gave up its gains partially. The scrip was trading at Rs 60.89 at 11.45 am. The scrip had settled at Rs 59.28 on Friday. Shares of Star Housing have surged more than 30 per cent in the last one month, while the stock has rallied over 70 per cent from its 52-week low at Rs 36.25.

The company board of directors also recommended a dividend of Rs 0.05 per equity share with a face value of Rs 5 each for the financial year 2022- 2023, which subject to the approval of the members at the ensuing annual general meeting of the company, the company said in a separate filing.

The company also increased the borrowing power limit up to Rs 700 crores, which is subject to the approval of shareholders in the ensuing annual general meeting. The board also approved the issuance of unsecured (NCDs) not more than Rs 100 crore by way of Private Placement for tranches, subject to the approval of the company.

Mumbai-headquartered Star HFL is registered as a primary lending institution (PLI) under the Pradhan Mantri Awas Yojana (PMAY). Star HFL is a rural focused housing finance company, which operates in rural and semi-urban geographies to provide housing finance assistance to first time EWS/LIG home buyers for purchase or construction of low-cost housing units. 

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