Bassinvictus Private Limited Issues LOI to Infuse Rs.200 Crore in Star Housing Finance
Star Housing Finance Limited (Star HFL) has received a Letter of Intent (LOI) from Bassinvictus Private Limited, outlining a plan to inject significant capital into the finance company. The LOI details the infusion of Rs.200 crore in equity to fortify Star HFL, subject to necessary statutory and regulatory approvals, which will occur in one or more tranches.Through this funding round, Bassinvictus Private Limited intends to acquire a majority stake in Star HFL. Additionally, the LOI notes that the company plans to execute a secondary purchase to buy out the stakes held by the promoters and ARKFIN Investment and Advisors Limited, identified as the single largest investor.
The agreement suggests that Bassinvictus Private Limited will also enhance the company's operational structure by bringing in a new leadership team to rebuild its foundation for future growth. Furthermore, the company aims to strengthen the Board by onboarding reputed professionals from the BFSI and allied sectors.
Key Transaction Milestones
The LOI specifies that the conversion of this Letter of Intent into a firm commitment document is contingent upon agreement from the company's lenders on several key structural reforms. These commitments include:- Restructuring the term loan facilities by extending the balance tenor.
- Granting a moratorium on interest and principal repayments for the next six months.
Immediately following such an agreement, Bassinvictus Private Limited is set to infuse Rs.25 crore into Star HFL in the form of an ICD. These initial funds are designated primarily for clearing pending dues of lenders and settling any statutory dues.
The Letter of Intent confirms Bassinvictus Private Limited's commitment to Star HFL, reiterating its intent to provide sustainable long-term returns to all stakeholders following the concurrence of the lenders.
The financial details of the proposed infusions are summarized below:
| Infusion Stage | Amount | Form of Funds | Purpose |
|---|---|---|---|
| Initial Major Infusion | Rs.200 crore | Equity (Tranches) | Infusion of funds |
| Secondary Infusion | Rs.25 crore | ICD | Clearing pending dues and statutory dues |
Stock Price Movement
As of 11:07, shares of Star Housing Finance Ltd are holding steady at ₹7.09, seeing no percentage change during the trading session. Earlier, the stock navigated a notable intraday range, fluctuating between a low of ₹6.74 and a high of ₹7.20.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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