Five Star Business Finance Limited has come up with an initial public offer (IPO). It will open on November 09-11, 2022 at Rs.450-474 a share. The IPO issue size is around Rs.1,960.01 crores. The minimum bid will be for 31 shares and in its multiples thereafter.
Five Star Business Finance Limited was incorporated in 1984. It is an NBFC-ND-SI providing secured business loans to micro-entrepreneurs and self-employed individuals. Each of them are largely excluded by traditional financing institutions. The company is headquartered in Chennai, Tamil Nadu with a strong presence in south India and all of its loans are secured by borrowers’ property.
The company has developed a business model that is predicted on arriving at an appropriate risk framework, with the optimal installment to income ratio to ensure that customers have the necessary means to repay the loan. It primarily offers customers small loans for business purposes. Additionally, it also provides loans for asset creation such as home renovation or improvement, or for meeting expenses for significant economic events such as marriage, healthcare and education.
Five Star Business Finance has 2,30,175 accounts, 311 branches & 19,793 no. of loans disbursed. On June 30, 2022, it had 6,077 no. of employees and Rs.52,965.35 millions Gross Term Loans.
Website – https://fivestargroup.in/
|Lakshmipathy Deenadayalan – 10.49%||Hema Lakshmipathy – 7.14%|
|Shritha Lakshmipathy – 0.07%||Matrix Partners India Holdings – 12.46%|
|SCI Investments V – 8.79%|
|Pre-Issue Shareholding – 40.07%||Post-Issue Shareholding -33.65%|
Strength & Weakness
|Fastest Gross Term Loans growth||Require substantial capital for business|
|Significant potential addressable market||Volatility in interest rates|
|Strong “on-ground” collections infrastructure lending||The risk of non-payment or default by our borrowers|
|Calibrated expansion strategy||Negative net cash flows in the past|
|Robust risk management||Highly competitive industry|
|Access to diversified and cost-effective long-term financing||Company is involved in certain legal proceedings|
|Experienced promoter & professional management team||Primarily focused in the states of Tamil Nadu, Andhra Pradesh, Telangana and Karnataka|
|Comprehensive credit assessment||Dependent on a number of Key Managerial Personnel|
|Shriram City Union Finance Ltd||Vistaar Financial Services Pvt Ltd|
|Aavas Financiers Ltd||Aye Finance|
|Lendingkart Technologies Pvt Ltd||Digikredit Finance Pvt Ltd|
|AU Small Finance Bank||Aavas Financiers Ltd|
|Home First Finance Company India||Aptus Value Housing Finance India|
|Year||Revenue (in Crore)||Profit (in Crore)|
Object of Issue
1) To carry out the Offer for Sale.
2) To achieve the benefits of listing the Equity Shares on the Stock Exchanges.
Five Star Business Finance IPO Lot Size
Five Star Business Finance IPO Details
|IPO Opening Date||November 09, 2022|
|IPO Closing Date||November 11, 2022|
|Face Value||Rs.1 per Equity Share|
|IPO Price||Rs.450-474 per share|
|Market Lot||31 shares|
|Minimum Order Quantity||31 shares|
|Listing At||NSE, BSE|
|No. of shares offered (OFS)||4,13,51,266 shares|
|Issue Size||Up to Rs.1,960.01 Crore|
|QIB Shares Offered||50% of the offer|
|Retail Shares Offered||35% of the offer|
|NII/HNI Shares Offered||15% of the offer|
Five Star Business Finance IPO Timetable
|IPO Date||November 09-11, 2022|
|Allotment Date||November 16, 2022|
|Initiation of Refunds||November 17, 2022|
|Credit of share to Demat a/c||November 18, 2022|
|IPO Listing Date||November 21, 2022|
KFin Technologies – https://ris.kfintech.com/ipostatus/
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