Five Star Business Finance IPO will open for subscription from 09 November 2022. the company aims for an issue size of ₹2,751.95 Cr through this IPO.
Five Star Business Finance Ltd
It is a Non-Banking Finance Company (NBFC) registered with the Reserve Bank of India (RBI) that provides Small Business loans and Small Mortgage loans to eligible borrowers to meet their business and personal needs. As of 30 September 2021, it had an extensive network of 268 branches spread across approximately 126 districts, eight states, and one union territory. Approximately 85% of its branch network is in Tamil Nadu, Andhra Pradesh, Telangana, and Karnataka. As of 30 September 2021, it had a total of 4,306 employees and is backed by marquee institutional investors such as TPG Capital, Sequoia Capital, Matrix Partners, Norwest Venture Partners, KKR, and TVS Capital Funds Limited.
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 268 branches as of September 30, 2021, spread across approximately 126 districts, eight states, and one union territory, 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 installment-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 176,467 as of March 31, 2021. With more than 30,000 million in AUM, the company has the fasted AUM growth among the compared peers.
Basic details about the company
| Full name | Five Star Business Finance Ltd |
| Sector | Finance |
| Industry | Finance-NBFC |
| Company Website | https://fivestargroup.in/ |
Major competitive strengths
- Experienced management team.
- An extensive network of 268 branches.
- Strong customer base.
Objects of the Issue
The Company will not receive any proceeds from the Offer and all such proceeds will go to the Selling Shareholders.
Dates to remember
| IPO Opening date | 09 November 2022 |
| IPO Closing | 11 November 2022 |
| Basis of Allotment | 16 November 2022 |
| Initiation Refund | 17 November 2022 |
| Credit to Demat Account | 18 November 2022 |
| Listing Date | 21 November 2022 |
Five Star Business Finance IPO Details
| IPO Date | Nov 9, 2022 to Nov 11, 2022 |
| Face Value | ₹1 per share |
| Price | ₹450 to ₹474 per share |
| Lot Size | 31 Shares |
| Issue Size | [.] shares of ₹1 (aggregating up to ₹1,960.01 Cr) |
| Offer for Sale | [.] shares of ₹1 (aggregating up to ₹1,960.01 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
Five Star Business Finance IPO Lot size
| 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 |
Reservation Details
| QIB Shares Offered | 50% |
| NII (HNI) Shares Offered | 15% |
| Retail Shares Offered | 35% |
Five-Star Business’ Financial Performance
| FY 2019 | FY 2020 | FY 2021 | FY 2022 | |
| Revenue | 409.0 | 787.4 | 1,051.3 | 1,256.2 |
| Expenses | 190.9 | 438.1 | 574.8 | 652.0 |
| Net income | 156.1 | 260.8 | 358.2 | 451.3 |
| Margin (%) | 38.2 | 33.1 | 34.1 | 35.9 |
Five-Star Business Finance Valuations & Margins
| FY 2019 | FY 2020 | FY 2021 | FY 2022 | |
| EPS | 6.73 | 10.07 | 13.61 | 15.92 |
| PE ratio | – | – | – | – |
| RONW (%) | 15.11 | 15.35 | 16.85 | 13.86 |
| ROCE (%) | – | – | – | – |
| EBITDA (%) | 74.02 | 73.25 | 77.45 | 73.13 |
| Debt/Equity | – | – | – | |
| NAV | 57.11 | 71.68 | 85.26 | 127.35 |
Company Promoters
- Lakshmipathy Deenadayalan
- Hema Lakshmipathy
- Shritha Lakshmipathy
- Matrix Partners India Investment Holdings II, LLC
- SCI Investments V
Five Star Business Finance IPO Promoter Holding
| Pre Issue Share Holding | 44.16% |
| Post Issue Share Holding | – |
Lead Manager(s)
- ICICI Securities Limited
- Edelweiss Financial Services Ltd
- Kotak Mahindra Capital Company Limited
- Nomura Financial Advisory And Securities (India) Pvt Ltd
Five-Star Business Finance IPO Registrar
Kfin Technologies Private Limited
Selenium, Tower B,
Plot No- 31 and 32, Gachibowli, Financial District
Nanakramguda, Serilingampally
Hyderabad 500 032, Telangana
Phone : +91 40 6716 2222 / 1800 309 4001
E-mail: sbfl.ipo@kfintech.com
Website: www.kfintech.com
Five-Star Business Finance Limited Contact Details
Five-Star Business Finance Limited
New No. 27, Old No. 4,
Taylor’s Road, Kilpauk,
Chennai 600 010,
Tamil Nadu, India
Phone: +91 44 4610 6260
Email: cs@fivestargroup.in
Website: www.fivestargroup.in
Five-Star Business Finance IPO Allotment Status
Five-Star Business Finance IPO allotment will be available on KFin Technologies’ website.
Click on this link to get allotment status.
Final thoughts
Five Star Business Finance IPO is going to hit Dalal street soon. applying for IPO is purely a personal choice. study well about the company and do subscribe if you are feeling good about the company. I hope this post will give you enough details to make a fundamental study of the company. learn well and make wise decisions.
Happy Investing
