Nifty 17469.75 (1.71%)
Sensex 58649.68 (1.76%)
Nifty Bank 37284.7 (1.82%)
Nifty IT 35959.05 (1.95%)
Nifty Financial Services 18284.95 (1.70%)
Adani Ports 761.40 (2.24%)
Asian Paints 3108.50 (2.58%)
Axis Bank 697.10 (1.47%)
B P C L 391.15 (0.86%)
Bajaj Auto 3332.05 (1.39%)
Bajaj Finance 7361.50 (3.64%)
Bajaj Finserv 17621.65 (3.00%)
Bharti Airtel 715.15 (2.33%)
Britannia Inds. 3575.75 (2.92%)
Cipla 897.95 (0.98%)
Coal India 150.90 (0.17%)
Divis Lab. 4604.95 (-0.43%)
Dr Reddys Labs 4570.70 (1.11%)
Eicher Motors 2505.55 (1.37%)
Grasim Inds 1716.25 (1.82%)
H D F C 2853.00 (1.26%)
HCL Technologies 1171.60 (1.91%)
HDFC Bank 1553.80 (1.84%)
HDFC Life Insur. 686.40 (-1.15%)
Hero Motocorp 2490.65 (1.17%)
Hind. Unilever 2340.60 (0.82%)
Hindalco Inds. 457.45 (3.38%)
I O C L 120.40 (-0.17%)
ICICI Bank 753.40 (2.55%)
IndusInd Bank 945.30 (2.01%)
Infosys 1753.35 (2.44%)
ITC 224.95 (1.95%)
JSW Steel 672.95 (1.86%)
Kotak Mah. Bank 1920.45 (-0.86%)
Larsen & Toubro 1825.05 (1.50%)
M & M 840.75 (1.79%)
Maruti Suzuki 7434.90 (3.46%)
Nestle India 19479.10 (0.70%)
NTPC 127.25 (1.52%)
O N G C 148.40 (1.71%)
Power Grid Corpn 204.80 (-0.49%)
Reliance Industr 2418.10 (1.52%)
SBI Life Insuran 1169.50 (0.89%)
Shree Cement 26106.90 (1.40%)
St Bk of India 491.55 (3.12%)
Sun Pharma.Inds. 757.55 (1.86%)
Tata Consumer 772.15 (1.51%)
Tata Motors 493.90 (2.51%)
Tata Steel 1173.00 (2.11%)
TCS 3626.90 (1.18%)
Tech Mahindra 1604.80 (1.79%)
Titan Company 2405.55 (1.05%)
UltraTech Cem. 7423.95 (1.71%)
UPL 728.10 (0.16%)
Wipro 641.70 (1.47%)
Five Star Business Finance IPO - 7 Things to Know
IPO
by 5paisa Research Team 20/11/2021

Chennai based Five Star Business Finance Ltd has filed its DRHP with SEBI for its proposed IPO. The Rs.2,752 crore IPO will entirely be an offer for sale by the existing shareholders.

Hence, there will be no fresh funds coming and no dilution of equity. The intent of the IPO is to list the stock for greater visibility and also as a potential future currency.
 

Here are seven things to know about the Five Star Business Finance IPO


1. The Rs.2,752 crore IPO of Five Star Business Finance will entirely be by way of offer for sale. Five Star Business Finance was originally set up as an NBFC in the year 1984 and caters to the small lending segment in the market, with focus on entrepreneurs and self-employed persons.

2. Currently, over 54% of Five Star Business Finance is held by 4 major PE investors. For instances TPG Asia holds 20.99% while Matrix Partners holds 14%.

Among other key investors, Norwest Venture owns 10.22% in Five Star Business Finance while SCI Investments holds a significant 8.83% stake in the company.

3. Most of the large holders will participate in the OFS to partially monetize their stake. Out of the total Rs.2,752 crore OFS, TPG Asia will sell Rs.1,350 crore, Matrix Partners will sell Rs.568 crore, Norwest Ventures Rs.386 crore and SCI Investments Rs.257 crore.

Promoters entities will sell around Rs.181 crore between them in the OFS.

4. Five Star Business Finance is based out Chennai and has leadership focus in South India. Since 2005, it provides secured business loans to small entrepreneurs and self-employed individuals, outside the purview of existing banks and financial institutions.

Most loans are secured by self-occupied residential property to reduce chances of default.

5. Five Star witnessed enviable growth . It has growth in last 2 years from 173 branches to 268 branches. Over last 4 years, live accounts have grown 12-fold to 1.92 lakhs.

While Five Star has presence in 8 states and 126 districts, nearly 95% of its portfolio is located in the 4 states of Tamil Nadu, Karnataka, Andhra Pradesh and Telangana.

6. Financial numbers have also been impressive for Five Star. For FY21, total income grew 34% at Rs.1,051 crore while net profits were up 37% at Rs.359 crore. Its assets under management or AUM currently stands at Rs.4,445 crore and has grown at a CAGR of 86% in last 5 years.

7. The IPO will be lead managed by ICICI Securities, Kotak Mahindra Capital, Edelweiss Financial and Nomura Financial Advisory, as book running lead managers.

Also Read:- 

Upcoming IPOs in 2021

Upcoming IPOs in November 2021

Open Demat Account

Enter First Name & Last Name
Enter Mobile Number
Enter correct otp
Please enter referal code
Start investing in just 5 mins
Free Demat account, No conditions apply
  • 0%* Brokerage
  • Flat ₹20 per order
Next Article

Start Investing Now!

Open Free Demat Account in 5 mins

 
 
There is some issue, try later