Representative image. News18
From Wednesday 9 November, the public will be able to start subscribing to the initial public offering (IPO) of the non-banking financial company Five Star Business Finance. The Chennai-based company’s three-day public offering will end on November 11. The tender for lead investors took place on 7 November. The entire IPO consists of an offer to sell by current shareholders and promoter group companies. The price range for the public offering has been set by the company at Rs 450-474 per share. Investors can submit offers on a minimum of 31 shares and then on multiples of 31 shares.
The lead managers of the issue are ICICI Securities, Kotak Mahindra Capital Company, Edelweiss Financial Services and Nomura Financial Advisory and Securities (India) Private Limited. Investors like TPG, Matrix Partners, Norwest Ventures, Sequoia and KKR are among those sponsoring Five Star Business Finance. Currently, Matrix Partners owns a 12.67% stake in the company, Norwest Venture owns 10.17%, SCI Investments owns 8.79%, TPG Asia owns 21.45%, and Norwest Venture owns 12.67. %.
Matrix Partners India Investment Holdings II LLC will sell shares worth Rs 719.41 crore, while Matrix Partners India Investments II Extension LLC will sell shares worth Rs 12.08 crore. Norwest Venture Partners X-Mauritius will also sell shares worth Rs 361.44 crore, while SCI Investments V will unload shares worth Rs 166.74 crore and TPG Asia VII SF Pte Ltd will sell shares of worth Rs 700.31 crore in the sale offer.
The company recorded a 19.49% increase in total revenue to Rs 1,256.16 crore in FY22 from Rs 1,051.25 crore in FY2. of 19.49% of Five Star’s net profit (Rs 453.54 crore) was also recorded. As of March 31, 2022, it had Rs 5,100 crore in assets under management.
Five Star Business Finance provides secured business loans to micro business owners and independent contractors who are often excluded from the financial mainstream. All loans are secured by the borrowers’ property, which is primarily self-occupied residential property. The company has a significant presence in South India.
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