Date, Price, GMP, and Details of Five Star Business Finance IPO
- Founded in 1984, Five Star Business Finance Limited is a non-banking financial institution that specializes in supplying micro- and self-employed borrowers with secured business loans.
- As of the 30th of June, 2022, the company’s wide branch network in India covers 8 states, 1 union territory, and over 150 districts; the most important of them are Tamil Nadu, Andhra Pradesh, Telangana, and Karnataka.
- Five Star Business Finance Limited has built its business model around the identification of a suitable risk framework and the optimal instalment-to-income ratio, both of which are intended to ensure that borrowers can afford to repay their loans after meeting all of their other financial commitments and any unforeseen expenses.
- The corporation has a significant presence in southern India and its headquarters is located in Chennai, Tamil Nadu. We had 4,306 workers as of the 30th of September, 2021.
- Overall, more than 185,000 clients have received loans from the organisation. As of June 30 and March 31 of 2022, their respective loan bases were 230,175 and 217,745.
- The company’s AUM growth rate of over $30 billion makes it the leader among its competitors. Total Borrowings were Rs 25,203.19 million as of June 30, 2022, and Rs 25,588.31 million as of March 31, 2022, respectively.
- With a CAGR (“Compound Annual Growth Rate”) on Gross Term Loans of 65.0% (Financial Year 2017 to 2021), FBFL has the highest growth rate among its compared peers (being NBFCs in India) – within a subset of large peers (with more than Rs. 3000 cr. in Gross Term Loans); FBFL has on Gross Term Loans of 7.5%, across the period covering Financial Years 2022, 2021, and 2020; and
- As of June30, 2022, the company’s 311 branches can be found in over 150 districts spanning eight states and one union territory; nevertheless, its primary markets are the states of Tamil Nadu, Andhra Pradesh, Telangana, and Karnataka. About 85% of the total number of branches as of June30, 2022, were located in these strategic states. About 95% of its branches as of June 30, 2022, were situated in urban areas with populations of a million or less. At the end of June 2022, there were 6,077 people working for the company.
Company Financials
| Period Ended | Total Assets | Total Revenue | Profit After Tax | Net Worth | Total Borrowing |
|---|---|---|---|---|---|
| 31-Mar-20 | 4353.15 | 787.35 | 261.95 | 1944.58 | 2363.69 |
| 31-Mar-21 | 5793.61 | 1051.26 | 358.99 | 2318.17 | 3425.2 |
| 30-Jun-21 | 6129.1 | 300.76 | 101.57 | 2944.41 | 3121.22 |
| 31-Mar-22 | 6343.07 | 1256.17 | 453.54 | 3710.35 | 2558.83 |
| 30-Jun-22 | 6471.55 | 339.06 | 139.43 | 3856.98 | 2520.32 |
| Amount in ₹ Crore | |||||
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 Size | 33,617,061 shares of ₹1 (aggregating up to ₹1,593.45 Cr) |
| Offer for Sale | 33,617,061 shares of ₹1 (aggregating up to ₹1,593.45 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| QIB Shares Offered | Not more than 50% of the Offer |
| NII (HNI) Shares Offered | Not less than 15% of the Offer |
| Retail Shares Offered | Not 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. |
IPO tentative schedule for Five Star Business Finance
The IPO for Five Star Business Finance starts on November 9, 2022, and ends on November 11, 2022. The bid date for the Five Star Business Finance IPO is from 10 a.m. on November 9, 2022, to 5 p.m. on November 11, 2022. The last time to confirm a UPI Mandate is at 5 p.m. on the day the issue ends.
| 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 |
IPO Lot Size Five Star Business Finance
The size of an IPO lot for Five Star Business Finance is 31 shares. A retail 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% |
Releases of Initial Public Offering Announcements
- Success for Five Star Business Finance’s Initial Public Offering
The initial public offering (IPO) for Five Star Business Finance was successful despite being undersubscribed (0.70 percent). Due to the company’s 100% OFS status, the issue size was modified based on the response. - Its upper band revenue was Rs 1005.06 cr, against an overall book size of Rs 1381 cr. Following are some of the requirements that must be met for the IPO to be considered a success.
- At least a thousand forms A minimum of a one-time subscription is required for the QIB part.
- It is recommended that at least 10% of the market cap be held by the public.
- Those three standards have been satisfied with success. The first two requirements are satisfied, and the third indicator is discussed further down.
- The IPO of Five Star Business Finance is expected to raise a total of Rs 13810 cr. The overall market value is equal to the upper IPO price band of Rs Rs 474 times the current number of outstanding shares (291,366,120).
- Therefore, they needed to raise a total of Rs 1,381 cr (10% of the market cap). There were a total of Rs 588 cr and Rs 1005 cr subscribed to the anchor book by the end of the subscription period. The sum of Rs 1593 cr is more than the necessary Rs 1381 cr.
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)
| Category | Subscription (times) |
|---|---|
| QIB | 1.77 |
| NII | 0.61 |
| bNII (bids above ₹10L) | 0.78 |
| sNII (bids below ₹10L) | 0.28 |
| Retail | 0.11 |
| Total | 0.70 |
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 |
Company Contact Information
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 FAQs
What is Five Star Business Finance IPO?
The first public offering (IPO) for Five Star Business Finance is for a total of 1,593.45 Crores, or 33,617,061 equity shares with a face value of 1. Shares in the issuance are listed at a price range of 450 and 474 Japanese yen. In order to place an order, you must purchase at least 31 shares.
The IPO begins trading on November 9, 2022, and ends two weeks later on November 11, 2022.
The IPO’s registrar is KFin Technologies Limited. The planned listing exchanges for the shares are the Bombay Stock Exchange and the National Stock Exchange.
How to apply in Five Star Business Finance IPO through Zerodha?
Customers of Zerodha can use UPI as a payment option for their online IPO application to Five Star Business Finance. An IPO application form for Five Star Business Finance can be found in the Zerodha Console (back office), where interested clients can access it.
Application Procedures for Zerodha’s Five Star Business Finance IPO
- Go to Zerodha.com and sign into Console there.
- To learn more about initial public offerings (IPOs), visit Portfolio.
- Click the “Bid” link in the row labelled “Five Star Business Finance IPO.”
- Type in your UPI number, quantity, and desired price.
- Use the button labelled “Submit” to hand in your IPO application.
- You can give your consent to the mandate by using the UPI app (net banking or BHIM).
- For further information, please refer to our review on applying for an IPO with Zerodha.
When is the IPO date for Five Star Business Finance?
The IPO date for Five Star Business Finance is Monday, November 21, 2022.
When did Five Star Business Finance start selling shares?
The Basis of Allotment for Five Star Business Finance’s IPO will be finalised on November 16, 2022, and the allotted shares will be added to your demat account by November 18, 2022. Check the status of the Five Star Business Finance IPO.
