Aavas Financiers shares rallied 4.6 percent intraday Monday after getting refinance assistance from National Housing Bank.
Jaipur-based affordable housing finance company has received fresh refinance assistance of Rs 400 crore in addition to the approval of undrawn limit of Rs 100 crore pertaining to previous year, in December 2018.
"Such refinance assistance will further strengthen liquidity position of the company, post the successful round of fund raise of Rs 200 crore from CDC Group through issuance of rupee denominated masala bonds," Aavas said.
The NHB funds are for a tenure up to 15 years which will provide a strong boost to retail home loan lending activities in semi-urban and rural areas, it added.
The company said such refinance facility will be disbursed in accordance with the norms of refinance schemes of NHB.
Aavas primarily provides affordable home loans to customers in the semi-urban and rural areas, targeting self-employed and salaried customers in the informal segment.