Raising of funds through issue of Non-Convertible Debentures
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Awaiting price reaction for this filing.
Star Housing Finance's board approved unaudited Q1 FY26 results with total income of Rs. 2,181.25 lakhs (vs Rs. 2,095.90 lakhs in Q1 FY25), but profit after tax fell sharply to Rs. 138.41 lakhs from Rs. 301.85 lakhs a year ago, with EPS dropping to Rs. 0.18 from Rs. 0.38. The company also approved raising up to Rs. 50 crore through 50,000 senior, secured, rated, listed, redeemable, taxable non-convertible debentures (NCDs) of Rs. 1,000 face value via private placement on BSE. A final dividend of Rs. 0.10 per share (Rs. 5 face value) was recommended for FY24-25. Additionally, authorized share capital will be raised from Rs. 50 crore to Rs. 125 crore, and certain promoters holding 1.33% of equity sought reclassification to public shareholders. Two directors resigned (Mr. Kavish Jain and Mr. Chinnathambi Ilango), Mr. Shakir Sheikh was appointed as Chief Compliance Officer for 3 years, and D.M. Zaveri & Co. was appointed as Secretarial Auditor for 5 years.
The sharp 54% YoY drop in Q1 profit despite higher revenue is a red flag for shareholders, though asset quality remains healthy with gross NPA at 1.65% and net NPA at 1.13%. The Rs. 50 crore NCD raise and capital expansion signal growth intent, but promoter reclassification and two director resignations could raise governance concerns. Overall, mixed signals — debt-funded expansion plans offset by weaker quarterly profitability and leadership changes.