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Five Star Business Finance Ltd IPO (Five Star Business Finance IPO) Detail

Nov 9, 2022 - Nov 11, 2022

Incorporated in 1984, Five Star Business Finance Limited is an NBFC-ND-SI (Non-Banking Finance Company) providing secured business loans to micro-entrepreneurs and self-employed individuals. The company has an extensive network of 311 branches, as of June 30, 2022, spread across eight states and one union territory and approximately 150 districts across India, with Tamil Nadu, Andhra Pradesh, Telangana and Karnataka being the key states.

Five Star Business Finance Limited has created a business model based on identifying an appropriate risk framework and the ideal instalment-to-income ratio to make sure that customers have the resources to repay the loan after meeting their regular obligations and other event-based capital requirements.

The company is headquartered in Chennai, Tamil Nadu with a strong presence in south India. As of September 30, 2021, we had a total of 4,306 employees.

The company has provided loans to more than 185,000 customers in total. They had an active loan base of 230,175 and 217,745 as of June 30, 2022, and March 31, 2022, respectively.

With more than 30,000 million in AUM, the company has the fasted AUM growth among the compared peers. As of June 30, 2022, and March 31, 2022, the Total Borrowings were Rs 25,203.19 million and Rs 25,588.31 million, respectively.

Company Financials

Five Star Business Finance Ltd Financial Information (Restated)
Period EndedTotal AssetsTotal RevenueProfit After TaxNet WorthTotal Borrowing
31-Mar-204353.15787.35261.951944.582363.69
31-Mar-215793.611051.26358.992318.173425.2
30-Jun-216129.1300.76101.572944.413121.22
31-Mar-226343.071256.17453.543710.352558.83
30-Jun-226471.55339.06139.433856.982520.32
Amount in ₹ Crore

Objects of the Issue

The Company will not receive any proceeds from the Offer and all such proceeds will go to the Selling Shareholders.

Five Star Business Finance IPO Details

IPO Date Nov 9, 2022 to Nov 11, 2022
Listing Date Monday, November 21, 2022
Face Value ₹1 per share
Price ₹450 to ₹474 per share
Lot Size 31 Shares
Issue Size33,617,061 shares of ₹1
(aggregating up to ₹1,593.45 Cr)
Offer for Sale33,617,061 shares of ₹1
(aggregating up to ₹1,593.45 Cr)
Issue Type Book Built Issue IPO
Listing At BSE, NSE
QIB Shares OfferedNot more than 50% of the Offer
NII (HNI) Shares OfferedNot less than 15% of the Offer
Retail Shares OfferedNot less than 35% of the Offer
Company Promoters

Lakshmipathy Deenadayalan, Hema Lakshmipathy, Shritha Lakshmipathy, Matrix Partners India Investment Holdings II, LLC and SCI Investments V are the company promoters.

Five Star Business Finance IPO Tentative Timetable

Five Star Business Finance IPO opens on Nov 9, 2022, and closes on Nov 11, 2022. The Five Star Business Finance IPO bid date is from Nov 9, 2022 10.00 A.M. to Nov 11, 2022 5.00 P.M. The Cut-off time for UPI Mandate confirmation is 5 PM on the issue closing day.

Event Tentative Date
Opening Date Nov 9, 2022
Closing Date Nov 11, 2022
Basis of Allotment Nov 16, 2022
Initiation of Refunds Nov 17, 2022
Credit of Shares to Demat Nov 18, 2022
Listing Date Nov 21, 2022

Five Star Business Finance IPO Lot Size

The Five Star Business Finance IPO lot size is 31 shares. A retail-individual investor can apply for up to 13 lots (403 shares or ₹191,022).

Application Lots Shares Amount
Retail (Min) 1 31 ₹14,694
Retail (Max) 13 403 ₹191,022
S-HNI (Min) 14 434 ₹205,716
B-HNI (Min) 69 2,139 ₹1,013,886

Five Star Business Finance IPO Promoter Holding

Pre Issue Share Holding 40.07%
Post Issue Share Holding 33.65%

IPO Notices

External Link

Five Star Business Finance IPO sees a successful closure

Five Star Business Finance IPO succeeds despite being un-subscribed (received 0.70% subscription). Being 100% OFS, the company adjusted the issue size with the subscription received.

As against an overall book size of Rs 1381 crs, it garnered Rs 1005.06 crs at the upper band. For the IPO to be successful, it has filled all criteria to meet the required norms highlighted below:

  1. Minimum 1000 forms
  2. QIB portion should be at least 1 time subscribed
  3. Minimum Public Shareholding norm should be 10% of the implied market cap.

All the 3 required norms are successfully met. The first and second criteria are met and the third pointer is explained below.

The total implied market cap of Five Star Business Finance IPO is Rs 13810 cr. The total market is calculated by multiplying the total number of outstanding shares (291,366,120 shares) by the upper band of the IPO Price which is Rs Rs 474. So, 10% of the market cap is 1381 cr, which they had to raise. The anchor book garnered Rs 588 cr and the 1005 cr till the last day of Subscription. The total is Rs 1593 cr which is higher than Rs 1381 cr requirement.

Five Star Business Finance IPO Review

This segment of small customer financing is getting crowded and most competitive. However, considering the recent financial performance and the confidence expressed by the management in maintaining the growth pattern, well-informed investors may consider parking funds with a long-term perspective. Read detail review...


Five Star Business Finance IPO Subscription Status (Bidding Detail)

The Five Star Business Finance IPO is subscribed 0.70 times on Nov 11, 2022 7:00:00 PM. The public issue subscribed 0.11 times in the retail category, 1.77 times in the QIB category, and 0.61 times in the NII category. Check Day by Day Subscription Details (Live Status)

CategorySubscription (times)
QIB1.77
NII0.61
    bNII (bids above ₹10L)0.78
    sNII (bids below ₹10L)0.28
Retail0.11
Total0.70

Five Star Business Finance IPO Rating

416
3.4
Rating:Rated 3.4 stars
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Five Star Business Finance IPO Listing Date

Listing Date Monday, November 21, 2022
BSE Script Code 543663
NSE Symbol FIVESTAR
Listing In B Group of Securities
ISIN INE128S01021
IPO Price ₹474 per share
Face Value ₹1 per share

Listing Day Trading Information

.
IPO Price
Open
Low
High
Last Trade
BSE
₹474.00
₹449.95
₹448.20
₹539.90
₹489.50
NSE
₹474.00
₹468.80
₹448.20
₹543.60
₹490.00

Company Contact Information

Five Star Business Finance Ltd
New No. 27, Old No. 4,
Taylor's Road, Kilpauk,
Chennai 600 010
Phone: +91 44 4610 6260
Email: cs@fivestargroup.in
Website: https://fivestargroup.in/

Five Star Business Finance IPO Registrar

KFin Technologies Limited

Phone: 04067162222, 04079611000
Email: einward.ris@kfintech.com
Website: https://karisma.kfintech.com/

Five Star Business Finance IPO FAQs

Five Star Business Finance IPO is a main-board IPO of 33,617,061 equity shares of the face value of ₹1 aggregating up to ₹1,593.45 Crores. The issue is priced at ₹450 to ₹474 per share. The minimum order quantity is 31 Shares.

The IPO opens on Nov 9, 2022, and closes on Nov 11, 2022.

KFin Technologies Limited is the registrar for the IPO. The shares are proposed to be listed on BSE, NSE.

Zerodha customers can apply online in Five Star Business Finance IPO using UPI as a payment gateway. Zerodha customers can apply in Five Star Business Finance IPO by login into Zerodha Console (back office) and submitting an IPO application form.

Steps to apply in Five Star Business Finance IPO through Zerodha

  1. Visit the Zerodha website and login to Console.
  2. Go to Portfolio and click the IPOs link.
  3. Go to the 'Five Star Business Finance IPO' row and click the 'Bid' button.
  4. Enter your UPI ID, Quantity, and Price.
  5. ‘Submit’ IPO application form.
  6. Visit the UPI App (net banking or BHIM) to approve the mandate.

Visit Zerodha IPO Application Process Review for more detail.

The Five Star Business Finance IPO opens on Nov 9, 2022 and closes on Nov 11, 2022.

Five Star Business Finance IPO lot size is 31 Shares and the minimum order quantity is .

You can apply in Five Star Business Finance IPO online using either UPI or ASBA as payment method. ASBA IPO application is available in the net banking of your bank account. UPI IPO application is offered by brokers who don't offer banking services. Read more detail about apply IPO online through Zerodha, Upstox, 5Paisa, Edelweiss, ICICI Bank, HDFC Bank and SBI Bank.

The finalization of Basis of Allotment for Five Star Business Finance IPO will be done on Nov 16, 2022, and the allotted shares will be credited to your demat account by Nov 18, 2022. Check the Five Star Business Finance IPO allotment status.

The Five Star Business Finance IPO listing date is on Monday, November 21, 2022.
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