### **Overview** Star Housing Finance Limited (Star HFL) is a **BSE Main Board-listed housing finance company (HFC)** (BOM: 539017), headquartered in **Mumbai**, with a focused mission to enable **affordable homeownership for first-time buyers in Economically Weaker Sections (EWS) and Low-Income Groups (LIG)**. The company primarily serves **semi-urban and rural areas across six Indian states**—Maharashtra, Tamil Nadu, Rajasthan, Gujarat, Madhya Pradesh, and Uttar Pradesh—leveraging a **retail-focused, technology-enabled, and risk-disciplined operating model**. Since its inception in 2005 and operational launch in 2009 under the name *Akme Star Housing Finance Ltd*, Star HFL has undergone a significant transformation—from a localized franchise-based entity in Udaipur to a **professionally managed, pan-India player in affordable housing finance**. --- ### **Strategic Transformation & Evolution** - **Rebranding & Restructuring**: In May 2021, the company rebranded from *Akme Star HFL* to **Star Housing Finance Limited**, receiving formal approval from the Reserve Bank of India (RBI). - **Geographic & Operational Shift**: Relocated its registered and corporate office from **Udaipur to Mumbai** in 2019–20, aligning with its ambition to become a national institution. - **Business Model Shift**: Transitioned from an **ad-hoc, franchise-driven model** to a **professionally managed, in-house sourcing, underwriting, and servicing model**, with robust policies and a strong risk governance framework. - **Listing Upgrade**: Migrated from the **BSE SME platform** to the **BSE Main Board**, reflecting enhanced scale, governance, and financial maturity. - **Growth Versioning**: The company has structured its growth into 10 strategic phases; Versions 1 (rebranding and relocation) and 2 (organizational build-up) have been successfully implemented. --- ### **Scale & Financial Performance (as of Sept–Nov 2025)** - **Assets Under Management (AUM)**: - ₹567.27 crores (as of **September 30, 2025**) - Growth from ₹60 crores pre-2019 to over **₹550+ crores by FY2025–26**, reflecting **exponential acceleration**. - **Loan Portfolio**: - Over **5,500 live accounts** as of Sept 2025. - **Average loan size**: ₹10–11 lakhs, with 35% salaried and 65% self-employed borrowers. - **Retail-focused**: Project loans constitute **<2% of AUM**; focus is exclusively on **small-ticket home loans (up to ₹25 lakhs)**. - **Asset Quality**: - **GNPA**: 1.65% - **NNPA**: 1.16% - **Collection efficiency**: >99%, supported by pre-EMI reminders, post-due follow-up mechanisms, and financial literacy programs. - **Profitability**: - **PBT (First Half FY2025–26)**: ₹3.17 crores - **PAT (FY2023–24)**: ₹8.88 crores - **Balance Sheet Strength**: - **Net worth**: ₹145+ crores - **Liabilities**: ~₹392 crores - **Leverage ratio**: ~2.81x (as of Sept 2025) --- ### **Product & Market Focus** - **Core Segments**: - **EWS/LIG borrowers** in **Tier II, III, and rural towns**, particularly among the **first-time homeowners**. - Over **70% of borrowers are self-employed**, with structured income patterns. - **Specialized Products**: - **Star Gramin Gruh Loan**: For **reconstruction of dilapidated village homes** and **addition of floors**—launched during the reverse migration trend post-pandemic. - **Small home improvement loans**: E.g., for verandas, bathrooms, study rooms. - **Loan Ticket Size**: ₹8–15 lakhs, with strong **affordability checks** and **low Loan-to-Value (LTV) ratios** (e.g., ~17–40% in observed cases), reflecting conservative lending and low collateral risk. --- ### **Strategic Partnerships & Funding** - **Co-Lending Partnerships**: - **Tata Housing Finance Limited (TCHFL)** and **Vastu HFC** for **priority sector lending expansion**. - **Singularity Creditworld** via **Bharat Housing Network** for digital co-lending. - These partnerships enhance capital efficiency, geographic reach, and support underbanked populations. - **Direct Assignment (DA) Deal**: Entered into a **₹620.38 crore DA transaction** with **Vastu HFC**, deploying capital to expand reach while optimizing balance sheet utilization. - **Funding Diversification**: - **17–18 funding institutions**, including **6 banks, 11 NBFCs/FIs, NHB refinancing, and private placements**. - Credit lines from **SBI, NHB, Hinduja, and AU Small Finance Bank**. - **BBB (stable)** rating from both India Ratings and CARE as of FY2023–24. - **Capital Raising**: - Preferential share issues and strategic investments, including **₹9.17 crores** raised in FY2021–22. - Net worth increased from ₹62.63 crores (2021) to over **₹145 crores (2025)**. --- ### **Technology & Operations** - **Lending Infrastructure**: - Migrating from **Jaguar LMS to "Jaguar Plus Version"** to enhance **credit management, receivables tracking, and operational productivity**. - Fully digitized **end-to-end loan processing platform** since 2019, with **mobile apps for field staff** (KYC, income verification, spot sanctions). - Cloud-based core banking system in partnership with **Jaguar Software India and IXL Mobility Solutions**. - **Collection Efficiency**: Achieved **>99% collection performance**, enabled by: - Pre-EMI SMS/call reminders. - Post-due follow-ups via phone, SMS, and written communication. - Financial literacy drives at branches. - **Technology Roadmap**: - Planning to launch a **digital lending vertical** for **top-up loans** via mobile app for customers with strong repayment history. --- ### **Asset Quality & Risk Management** - **Conservatively Managed Portfolio**: - **GNPA** consistently under **2%** (1.65% as of Sept 2025), among the **lowest in the sector**. - **NNPA**: 1.16%, supported by **48%+ provision coverage** historically. - Portfolio at Risk (PAR) routinely in **low single digits**. - **Risk Philosophy**: “**Quality over Quantity**” – strong emphasis on **credit discipline, field verification, and long-term borrower behavior**. - **Governance**: - **Professional board** with ex-officials from **NHB, IDBI, LIC, and CanFin Homes**. - Led by **Kalpesh Dave (CEO & Director)**, **Kavish Jain (ED, Business Operations)**, and **Anoop Saxena (Head of Credit & Operations)**. - Strategic input from **Shri C. Ilango (ex-MD, CanFin Homes)** and **Ajith Kumar Lakshmanan (Independent Director)**. --- ### **Differentiating Strengths** 1. **Niche Focus**: Pure-play in **EWS/LIG rural/semi-urban housing** with proven demand resilience. 2. **Conservative Lending**: Low LTVs, high-quality underwriting, and strong recovery systems. 3. **Scalable Branch Model**: New branches reach **breakeven in 5–6 months** (rural: 3–4 months). 4. **Technology Integration**: End-to-end digital processing enables **speed and scalability** in underserved areas. 5. **Experienced Leadership**: Over **200 years of cumulative sector experience** in leadership and governance. ---