Star Housing Fin

- The company has issued warrants and is exploring raising additional capital, with interest from HNIs and family offices for long-term growth participation. Any capital raise will be presented to the Board for approval. - Plans to expand branch network from 34 to 50+ branches in the current financial year and to 100+ branches over the next few years to support growth. - Investment in capacity creation through recruitment of quality manpower and digitization of processes. - Exploration of presence in new geographies, including select southern states and adjoining states like Chhattisgarh. - Potential strategic presence testing in a couple of new geographies is planned, including a small presence in a couple of US geographies. - No specific mention of large-scale capex, but emphasis on operational expansion and supporting infrastructure through branch and team growth.

- Star Housing Finance is targeting to cross Rs. 500 crores AUM by mid-2024, already close at Rs. 471 crores as of June 2024. - Next milestone is Rs. 1000 crores AUM, targeted within 4 to 6 operational quarters (by December 2025). - Further scaling to Rs. 2000 crores AUM over the next 16 quarters (~4 years) following the Rs. 1000 crore mark. - Branch expansion planned: from 34 branches currently to +50 by end of current financial year, and +100 branches over a few years for scaling. - Monthly disbursement steady state expected to rise from Rs. 20-22 crores to Rs. 35-40 crores with 50 branches, and to Rs. 75-80 crores with 100+ branches. - Growth focus emphasizes quality loan book and sustainable scale-up, avoiding rapid expansion that compromises asset quality. - Growth plan supported by strong liability pipeline and capital infusion including warrant subscriptions and potential additional capital raises.

- Star Housing Finance aims to achieve Rs. 500 crore AUM shortly and targets Rs. 1,000 crore AUM by December 2025. - Over the next 48 months, the goal is to reach Rs. 2,000 crore AUM through branch network expansion (+100 branches). - The company expects to sustain a credit and collection-focused strategy ensuring consistent asset quality. - Projected spread between yield and borrowing cost is 500 to 550 basis points, supporting sustainable ROE and ROA. - Management targets a +18% ROE in the steady state over the next 4 years. - Borrowing cost rise from approx. 9.75% to around 11.25%-11.5% has reduced bottom line by 18%-20%, with expectations of proportional bottom line improvement on cost reductions. - Profit after tax grew by 94.83% YoY in Q1 FY25, indicating strong current momentum. - Dividend payout raised by 50%, reflecting confidence in future earnings growth.

- Current Asset Under Management (AUM) stands at Rs. 471.41 crores as of June 30, 2024. - Disbursements for Q1 FY25 totaled Rs. 61.23 crores, a 76.61% year-on-year growth. - The company is close to crossing the Rs. 500 crore AUM milestone. - Target to achieve Rs. 1000 crore AUM within the next 4 to 6 operational quarters (by December 31, 2025). - Plan to further scale to Rs. 2000 crore AUM over the subsequent 8 to 10 quarters after reaching Rs. 1000 crore. - Liability pipeline is robust with borrowings standing at Rs. 335.35 crores across six banks and 11 financial institutions. - Warrants issued in December 2023 have seen 25-26% subscription; remaining expected within 12 months, enhancing net worth and funding growth. This reflects a strong pending orderbook in the form of loan disbursement pipeline aligned with planned growth targets.

- The company plans to raise additional capital and has already issued warrants for subscription. - Interest from High Net Worth Individuals (HNIs) and family offices is being received for participation in long-term growth. - Any capital raise beyond warrants will be presented to the Board for approval. - Debt-wise, the company intends to diversify liabilities through term loans, refinancing from former regulators, Non-Convertible Debentures (NCDs), and partnerships with financial institutions. - Current borrowing stands at Rs. 335.35 crores from six banks and 11 financial institutions with a debt-to-equity ratio of 2.43x. - Liability pipeline is strong, planned as per the business plan to fund growth initiatives. - Fundraising activities align with expansion and scaling plans but no specific forward-looking commitments were declared.