Star Housing Finance to Hold Debenture Holders' Meeting Amid Payment Delay
Star Housing Finance Ltd. has announced a meeting of its Debenture Holders, chaired by Vardhman Trusteeship Private Limited, due to the outstanding payment of outstanding principal and interest on its Non-Convertible Debentures (NCDs).The NCDs, issued on a private placement basis and holding an aggregate value of INR 20,00,00,000/- (Indian Rupees Twenty Crores only), were subject to a Put Notice issued on March 11, 2026. Accordingly, the payment of interest and principal was due on April 25, 2026.
The company has requested an extension of fourteen working days from the Debenture Trustee to complete the payment, citing that it is currently in the process of infusing liquidity through the onboarding of a prospective new investor.
Meeting Details and Purpose
A meeting of the Debenture Holders has been scheduled for Friday, May 22, 2026, at 4:00 p.m. The Debenture Trustee noted that if the payment default is cured between the date of the meeting notice and the scheduled meeting date, the meeting will stand cancelled.The proposed meeting aims to consider several critical actions, including:
1. Determining whether to pass a provision for negative consent regarding the enforcement of security.
2. Considering positive consent for signing the Inter Creditor Agreement (ICA), particularly if the Debenture Trustee is approached by other lenders for the ICA.
3. Addressing other actions that may be decided by the Debenture Holders.
Outstanding Debenture Summary
The details pertaining to the debentures and the corporate action are outlined below:| Detail | Value |
|---|---|
| Company | Star Housing Finance Ltd. |
| Debenture Trustee | Vardhman Trusteeship Private Limited |
| NCD ISIN | INE526R07017 |
| Outstanding Amount | INR 20,00,00,000/- |
| Due Date (Principal/Interest) | April 25, 2026 |
| Extension Requested | 14 working days |
| Meeting Date | May 22, 2026 |
The notice further stipulated that the enforcement of security or filing of a recovery suit by a Debenture Holder requires the passing of a resolution by Debenture Holders representing not less than 75% of the outstanding Debentures by value and 60% by number.
The Debenture Trustee stated that if requisite consents are not received for the enforcement of security or for signing the ICA, the trustee shall take further action as per the decision made by the Debenture Holders in the meeting.
Stock Price Movement
As of 12:12, Star Housing Finance Ltd shares are edging higher, currently standing at ₹8.71, which marks a strong 4.94% increase for the day. The intraday action confirms that the stock is trading completely flat, finding support and resistance right at the ₹8.71 level.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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