Can Fin Homes board consider fundraise on October 22

Canara Bank promoted the housing finance company Can Fin Homes Limited during the 1987 International Year of Shelter for the Homeless. The Companies Act of 1956 is the law under which the company was formed. Founder Chairman Shri B Ratnakar launched the HFC, the nation’s first nationalized bank to do so. The company was founded with the primary goal of encouraging home ownership and expanding the supply of housing in the nation. HDFC, UTI, Canara Bank, and Can Bank Financial Services were the company’s original investors. One of the very few HFCs approved by NHB to accept consumer deposits. Since its founding, the company has consistently produced profits and paid dividends, with a 100% dividend declared since FY16. It was listed in 1991.

Using NCDs, Can Fin Homes Limited is trying to raise Rs. 4000 crore.

The announcement that Can Fin Homes Limited would hold a Board of Directors meeting on October 22, 2024, to discuss raising up to Rs. 4,000 crore through the issuance of non-convertible redeemable debts (NCDs) caused the company’s shares to rise by more than 2%. Through a private placement, these NCDs will be distributed in one or more tranches and may be secured or unsecured. This complies with the approval given by shareholders on August 7, 2024, during the Annual General Meeting (AGM).

The board will examine and approve the unaudited standalone financial results for the second quarter and half-year that ended on September 30, 2024, in addition to the limited review report for the same period.

Q1 FY25 Can Fin Homes Limited results

In Q1 FY25 compared to Q1 FY24, the housing finance company reported an 8.8% increase in net profit to Rs 199.64 crore and a 13% increase in total income to Rs 931.13 crore.

Today’s gains in Can Fin Homes Ltd.’s stock have exceeded 2%.

Currently trading at Rs. 888.85 per share, the stock of Can Fin Homes Ltd. has experienced a high trade price of Rs. 891.65, or 2% intraday; this is likely due to a board meeting to discuss a potential Rs. 4,000 crore fundraising.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.