You are here: Home » Markets » News
Business Standard

Aavas Financiers surges 6% ahead of board meet for fund raising via NCDs

Thus far in the calendar year 2019, the stock has zoomed 129 per cent from the level of Rs 851 on the BSE

SI Reporter  |  Mumbai 

Currency

Shares of rallied 6 per cent on Thursday to hit a new high of Rs 1,949 on the BSE ahead of board meeting later in the day to consider fund raising via non-convertible debentures (NCDs). The housing finance company's stock surpassed its previous high of Rs 1,880, hit on December 2, 2019 in intra-day trade.

“A meeting of the executive committee of the board of directors of the Company will be held on Thursday, December 12, 2019, to consider the issue of Non-convertible Debentures (NCD) on private placement basis,” said in regulatory filing on Monday, December 9.

Aavas is a retail-focused affordable housing finance company, primarily serving low and middle-income self-employed customers. The company's product offering consists of home loans for purchase or construction or residential properties, and for the extension and repair of existing housing units.

Thus far in the calendar year 2019, the stock has zoomed 129 per cent from the level of Rs 851 on the BSE. In comparison, the S&P BSE Sensex was up 13 per cent during the same period.

had posted a strong 86 per cent year-on-year (YoY) jump in net profit at Rs 121 crore during first half (April-September) of the financial year 2019-20. Net interest income (NII) during the period grew 39 per cent at Rs 251 crore on YoY basis. In the past one year, the company’s assets under management (AUM) rose 42 per cent to Rs 6,753 crore from Rs 4,759 crore. The company’s asset quality continues to remain strong with gross non-performing assets ratio (GNPA) of 0.62 per cent as on September 30, 2019.

The management said it is looking to maintain the GNPA levels below 1 per cent and RoA of 2.5 per cent and above. The company is expected to pick up disbursement growth in second half.

First Published: Thu, December 12 2019. 10:24 IST
RECOMMENDED FOR YOU