Five Star Business Finance’s IPO sees a successful close Against an overall book size of Rs 1372 crs, it raised Rs 1005.06 crs at the upper band

MUMBAI, NOVEMBER 11, 2022 (GPN): Five Star Business Finance Limited, offers secured business loans to micro-entrepreneurs and self-employed individuals, each of which is largely excluded by traditional financial institutions, received offers of 2,12,03,845 shares against the 3,04,88,966 shares offered (at the lower end of the price range), at a price range of ₹450-474, according to available exchange data. Overall, the issue was subscribed 0.70 times on the first day of auction. Taking the upper end of the price range, the shares offered would have been 2,89,46,203 shares and the subscription would have been 0.81.

Calculated at the lower end of the price range, the share reserved for qualified institutional buyers was subscribed 1.77 times. The non-institutional segment saw a response of 0.61 times. The Retail Unit was subscribed 0.11 times. The issue was launched for subscription on Wednesday November 09 and will close on Friday November 11, 2022.

Five Star Business Finance Ltd raised Rs 588 crores from overseas investors ahead of the IPO. Overall, it saw a 73% subscription and at its upper price range including anchor demand, they garnered Rs 1593.06 crore.

The offer was a sale offer totaling ₹1,960 crore by the company’s promoters and existing shareholders.

ICICI Securities Limited, Kotak Mahindra Capital Company Limited, Edelweiss Financial Services Limited and Nomura Financial Advisory and Securities (India) Private Limited are the lead managers of the issue.

Company Information

Five Star Business Finance, has a strong presence in South India, and all loans are secured by the borrowers’ property, mostly self-occupied residential properties (SORPs), according to the CRISIL report, among its peers. FSBFL, founded by VK Ranganathan, began operations in 1984, focusing on consumer loans and auto finance.

Assets under management stood at Rs. 5,300 crore as of June 30, 2022, compared to Rs. 4,400 crore as of March 31, 2021. As of June 30, 2022, Tamil Nadu, Karnataka, Andhra Pradesh and Telangana accounted for 85 % of overall portfolio. Five Star Business has the second highest capital adequacy ratio of 75.2% after Aptus Value Housing (85.6%) among peers compared in March 2022.

As of June 30, 2022, it has a network of 311 branches in 150 districts, 8 states and 1 union territory. With a workforce of 6,077 employees, the actual counts increased from 33,157 in fiscal year 2018 to 230,175 as of June 30, 2022.

FIVE STAR CORPORATE FINANCING LIMITED

Last updated on
November 11, 2022 | 17:18:00

Sr.No. Category Number of shares offered / reserved Number of shares offered for Number of times of the total intended for the category
1 Qualified Institutional Buyers (QIB) 87,11,132 1,54,45,967 1.77
1(a) Foreign Institutional Investors (FII) 1,03,37,322
1(b) Domestic financial institutions (banks/financial institutions (FIs)/insurance companies) 31,13,578
1 C) Mutual fund 13,53,305
1(D) Others 6,41,762
2 Non-Institutional Investors (NIIS) 65,33,350 40,12,020 0.61
2.1 Non-Institutional Investors (Offer Amount above Ten Lakh Rupees) 43,55,566 34,04,234 0.78
2.1(a) Companies 5,20,490
2.1(b) Individuals (other than RII) 28,31,726
2.1(c) Others 52,018
2.2 Non-institutional investors (offer amount of more than two lakh rupees and up to 10 lakh rupees) 21,77,784 607786 0.28
2.2(a) Companies 2,542
2.2(b) Individuals (other than RII) 4 96 620
2.2(c) Others 1,08,624
3 Retail Individual Investors (RII) 1,52,44,484 17,45,858 0.11
3(a) To cut 14,89,674
3(b) Price offers 2,56,184
4 Reserved employee
4(a) Employee (cut)
4(b) Employee (Award)
5 Reservation ShareShareholder
5(a) RPS (cut)
5(b) RPS (Price)
Total 3,04,88,966 2,12,03,845 0.70

Note: The Exchange calculates demand on the lower price range

ESB+NSE cumulative request link: https://www.bseindia.com/markets/publicIssues/CummDemandSchedule.aspx?ID=5927&status=L