Star Housing Finance rises as board OKs stock split, bonus issue

Star Housing Finance gained 1.15% to Rs 215.80 after the company announced that its board has approved 2-for-1 stock split and 1:1 issue of bonus shares.

The housing finance company said that its board has approved a bonus issue in the ratio of 1:1 (one new bonus equity share for every one existing fully paid-up equity share).

The company's board has also approved subdivision of one equity share having face value of Rs 10 each into two equity shares having face value of Rs 5 each.

Further, the board of directors of the company has fixed 16 December 2022 as the record date for the said bonus issue and share split.

Kalpesh Dave, Head Corporate Strategy at Star HFL, added, We have created office network covering 40 districts in 5 operational geographies that are leading the AUM build-up. Our growth is backed by quality and risk framework akin to our target segment of EWS / LIG first time home owners from semi-urban / rural areas. Our net worth has crossed Rs 100 crore courtesy three successful rounds of capital raise over the last 12 months. Liability franchise is growing hand-in-hand to complement the growth.

He further added, The company looks to create sustainable return on total assets (ROTA) for its shareholders through balance sheet growth. The corporate action of split and bonus is amongst the series of initiatives towards value creation for our shareholders.

Star Housing Finance, formerly know as Akmestar Housing Finance, i rural focused housing finance company. The company reported a net profit of Rs 2.17 crore in Q2 FY23, steeply higher than Rs 37 lakh in Q2 FY22. Total income surged 89.7% year on year to Rs 8.63 crore in Q2 FY23.

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