Star Housing Finance Ltd — Important, 30-01-2026: Company Update

Star Housing Finance Limited's long-term bank facilities, totaling 300 Cr, have been downgraded by CARE Ratings Limited from CARE BBB; Stable to CARE BBB-; Negative. This action primarily reflects challenges in scaling operations and persistent funding constraints, despite adequate capital levels. CARE noted a slowdown in loan disbursements, moderate asset quality, and moderated profitability. The inability to successfully raise equity, including a withdrawn rights issue, was a key factor. The Negative outlook highlights ongoing concerns about the company's ability to secure growth capital and expand its operational scale.