Five Star Business Finance IPO – Review, Bid, Size, Allotment, Subscription, GMP & RHP
Last Updated Date: Nov 17, 2022Five Star Business Finance Limited is an NBFC and has been serving its customers for decades. The entity was established in 1984, and since then, it has grown its operations and size incredibly. The company has expanded and operations in different states.
Five Star Business Finance IPO is an OFS where the existing shareholders will participate and sell their shares. The company will not receive any proceeds from the IPO.
Five Star Business Finance IPO Review will take you through this upcoming IPO’s details, including the important IPO dates, IPO objects, subscription, allotment, and so on. Also, we will talk about the operations, offerings, financial statements, and promoters of the company.
| Face Value | Rs.1 |
| Price Band | Rs. 450 to Rs. 474 per share |
| Listing At | BSE, NSE |
| Min. Order Quantity | 31 shares |
| Listing Date | Nov 21, 2022 |
| Offer for Sale | Rs. 1,960 Crore |
| Fresh Issue | – |
| IPO Size | Rs. 1,960 Crore |
| Tick Size | 1 |
Five Star Business Finance IPO Overview
Five Star Business Finance IPO is an Offer for Sale where the company’s existing shareholders will be selling their shares and monetizing their stakes. The company will not be receiving any proceeds from the IPO.
The face value of the equity shares is Rs. 1 each. The price will be determined through the Book building process. The equity shares of the company will be listed on NSE and BSE.
Five Star Business Finance IPO Important Dates
| Events | Date |
| IPO Opening Date | Nov 9, 2022 |
| IPO Closing Date | Nov 11, 2022 |
| Basis of Allotment Finalization | Nov 16, 2022 |
| Refunds Initiation | Nov 17, 2022 |
| Credit of Shares to Demat Account | Nov 18, 2022 |
| Share Listing Date | Nov 21, 2022 |
Five Star Business Finance IPO Dates have not been confirmed yet. The company is preparing to open the IPO soon and gather bids from the public. Later, the IPO price and allotment will be finalized, and the respective allotment will be made to the successful bidders.
IPO Dates will be announced soon by the company and will be published for the information of the general public.
Five Star Business Finance IPO Price, Size, Share Offerings
| Face Value | Rs.10 |
| Price Band | Rs. 450 to Rs. 474 per share |
| Offer for Sale | Rs. 1,960 crore |
| Fresh Issue | – |
| IPO Size | Rs. 1,960 crore |
Five Star Business Finance IPO is an Offer for Sale and does not comprise fresh shares in any portion. Five Star Business Finance IPO Size and Five Star Business Finance IPO Price will be determined after the Book Building Process.
The minimum lot size and price will be determined by the company and the selling shareholders in consultation with the Book Running Lead Managers (BRLMs) of the issue.
Five Star Business Finance IPO Grey Market Premium
| Date | GMP (Rs.) | Kostak Rate (Rs.) | Subject to Sauda (Rs.) |
| 15 Nov 2022 | Disc | NA | NA |
| 14 Nov 2022 | Disc | NA | NA |
| 12 Nov 2022 | (Rs. 5) | NA | NA |
| 11 Nov 2022 | (Rs. 5) | NA | NA |
| 10 Nov 2022 | Rs. 10 | NA | NA |
| 09 Nov 2022 | Rs. 10 | NA | NA |
| 08 Nov 2022 | Rs. 10 | NA | NA |
| 07 Nov 2022 | Rs. 8 | NA | NA |
| 06 Nov 2022 | NA | NA | NA |
Grey Market is an unofficial market for trading goods and, in this case, shares. Here, the equity shares of a company are bid and offered between the traders before their listing. Once the listing is completed, the shares can be traded online in the secondary market through stock brokers.
Five Star Business Finance IPO GMP will be updated in some time in the above table, from where you can gain daily updates.
Five Star Business Finance IPO Subscription Status
| Day / Date | QIB | NII | RII | Total Subscription |
| 1st Day – 9th Nov | 0.03x | 0.01x | 0.03x | 0.02x |
| 2nd Day – 10th Nov | 1.01x | 0.02x | 0.06x | 0.32x |
| 3rd Day – 11th Nov | 1.77x | 0.61x | 0.11x | 0.70x |
| Shares Offered or Net Issue | 8,711,132 | 6,533,350 | 15,244,484 | 30,488,966 |
Five Star Business Finance IPO Subscription will be reserved for the different categories of investors in the following manner:
50% of the Offer will be reserved for allocation by the Qualified Institutional Buyers (OIBs), 15% of the shares will be available for allocation to the Non-Institutional Bidders, and the remaining 35% of the Offer will be reserved for allocation to Retail Individual Bidders.
All the bidders (except Anchor Investors) will bid in the IPO through the Application Supported by Blocked Amount (ASBA).
Five Star Business Finance IPO Allotment Status
Five Star Business Finance IPO Allotment has not been finalized till now. The company will soon launch the IPO and publicly offer its equity shares. Allotment will be executed after the subscription process.
Allotment of shares is issued to the public in exchange for cash or otherwise. Issuance of new shares increases the share capital of a company.
Five Star Business Finance IPO Live Performance
Check out the Five Star Business Finance IPO Price now and bid in the IPO at the most suitable and profitable price level. Invest in any IPO or listed company after checking its prevailing rates in the market.
Subscribe to Five Star Business Finance IPO – Open Free Demat Account Now!
Latest Five Star Business Finance IPO News
Five Star Business Finance IPO is going to open on 9th November 2022. The company has received the required approvals and is now good to invite bids from the public. The company’s existing shareholders will monetize their stakes and sell them to the public.
Five Star Business Finance is a finance company whose foundations are led by talented, skillful, and experienced individuals who drive its success.
Five Star Business Finance – Company Review
With the motto of “Reaching the Unreached,” Five Star Business Finance Limited embarked upon a thriving journey. The entity extends its services and assistance to underserved segments like micro-entrepreneurs and self-employed individuals. Access to financial resources is elemental before gearing up and starting any new business or for those substantial events of our lives.
Five Star Business Finance was brought into being in 1984 and had a long track record of decades of serving needy individuals and entrepreneurs.
The company offers various financial services to the unbanked or underbanked section of our country so that they can too make the endeavors and contribute to their success as well as the economy as a whole.
Products or Services
The products and services palette of Five Star Business Finance Limited includes various resourceful and highly aiding elements which the customers endear. The entity understands the requirements of its clientele well and strives to serve them in the most benefitting manner.
Individuals and entrepreneurs in need of funds can take small loans ranging between Rs. 1 lakh to Rs. 10 lakhs from the entity for varied purposes like for their businesses, home renovation, improvements, and meeting substantial expenditures like healthcare, marriage, or education.
The repayment of these loans is also simplified by Five Star Business as they offer repayments made on a monthly equated basis.
Promoters and Holding
The Promoters of Five-Star Business Finance Limited are:
- Lakshmipathy Deenadayalan
- Hema Lakshmipathy
- Shritha Lakshmipathy
- Matrix Partners India Investment Holdings II, LLC
- Sci Investments V
The management of the company comprises of:
- Lakshmipathy Deenadayalan, in the position of Chairman and Managing Director
- Anand Raghavan, in the position of Independent Director
- Srinivasaraghavan Thiruvallur Thattai, in the position of Independent Director
- Bhama Krishnamurthy, in the position of Independent Director
- Ramanathan Annamalai, in the position of Independent Director
- Ravishankar Ganapathyagraharam Venkataraman, in the position of Non-Executive Director
- Vikram Vaidyanathan, in the position of Non-Executive Director
- Thirulokchand Vasan, in the position of Non-Executive Director
- Rangarajan Krishnan, in the position of Chief Executive Officer
- Srikanth Gopalakrishnan, in the position of Chief of Strategy and Finance
- Roopa Sampath Kumar, in the position of Chief Financial Officer
- Shalini Baskaran, in the position of Company Secretary and Compliance Officer
Is Five Star Business Finance good for Investment?
Five-Star Business Finance Limited is an NBFC-ND-SI (Non-Banking Financial Company) offering financial services to self-employed individuals and micro-entrepreneurs. The segment Five Star caters to is generally excluded by traditional financial systems or is underbanked.
The company started its core operations in Chennai, Tamil Nadu, and it has now successfully expanded itself to over eight states with more than 268 branches. The company has a significant presence in Tamil Nadu, Karnataka, Telangana, and Andhra Pradesh.
Five-Star Business Finance has framed a model for identifying an appropriate risk framework and effective installment-to-income ratio such that the customers or loan bearers have sufficient resources to repay the debts.
Five Star Business Finance Financial Statements
| Amount (in INR & Million) | |||||
| 30-Sept-2021 | 30-Sept-2020 | 31-Mar-2021 | 31-Mar-2020 | Mar-2019 | |
| Assets | 63,745.8 | 52,573.8 | 57,936.1 | 43,531.5 | 23,611.7 |
| Revenue | 6,112.4 | 5,044.8 | 10,512.6 | 7,873.5 | 4,089.9 |
| Expense | 3,228.31 | 2,537.41 | 5,748.15 | 4,380.46 | 1,908.82 |
| Profit After Tax | 2,175.47 | 1,891.3 | 3,589.9 | 2,619.5 | 1564.1 |
The Draft Papers of Five-Star Business Finance Limited consist of the financial statements from the past few financial periods. Let’s see what the financial numbers have to say about the company’s operations.
In the past three financial years, 2019, 2020, and 2021, the company’s total revenue has grown impressively, and so are the profits.
The profits grew by over 100% between March 2019 to March 2021. All the data given in the table is related to the assets, revenue, expenses, and profit after tax.
The most recent representation is of the six months of 2021-22, where the total income is Rs. 6112.39 million against the profit of Rs. 2,175.47 million, respectively.
| Earnings per Equity Share (in Million) | |||||
| 30-Sept-2021 | 30-Sept-2020 | 31-Mar-2021 | 31-Mar-2020 | Mar-2019 | |
| Basic | 7.96 | 7.39 | 14.01 | 10.32 | 6.88 |
| Diluted | 7.85 | 7.22 | 13.61 | 10.07 | 6.73 |
Now, about Five-Star Business Finance’s Earning Per Share (EPS). The company’s EPS stands on the positive axis of the graph. The EPS rose every year from Rs. 6.88 in March 2019 to Rs. 14.01 in March 2021.
Five Star Business Finance IPO Review
Five-Star Business Finance IPO is entirely an Offer for Sale where the investors will offload their shares and make a partial or full exit from the company. Some of the significant shareholders will be participating in the IPO.
As the IPO is entirely an Offer for Sale, the company will not be receiving any proceeds from the IPO; the selling shareholders will be entitled to the sum after deducting the IPO expenditures.
The IPO’s objectives include selling equity shares and attaining the benefits of listing equity shares on stock exchanges.
Five Star Business Finance IPO Details
Here are few more details you need to know before investing in Five Star Business Finance IPO –
Five Star Business Finance IPO Issue Object
- To carry out the Offer for Sale; and
- To achieve the benefits of listing the Equity Shares on the Stock Exchanges.
Five Star Business Finance IPO – Basis of Offer Price
The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.
Qualitative factors are:
- Fastest AUM growth among our compared peers with more than ₹30,000 million in AUM, with strong return and growth metrics and a significant potential addressable market;
- Among the select institutions to develop an underwriting model that evaluates the cash-flows of small business owners and self-employed individuals in the absence of traditional documentary proofs of income;
- Strong on-ground collections infrastructure leading to our ability to maintain a robust asset quality;
- Ability to successfully expand to new under penetrated geographies through a calibrated expansion strategy;
- 100% in-house sourcing, comprehensive credit assessment and robust risk management and collections framework, leading to good asset quality;
- Access to diversified and cost-effective long-term financing with a conservative approach to asset liability and liquidity management; and
- Experienced, cycle-tested leadership with an experienced longstanding promoter, and a professional management team and supported by marquee investors.
Quantitative factors are:
| Basic EPS | Diluted EPS | RONW (%) | NAV (Rs.) | |
| 31-Mar-21 | 14.01 | 13.61 | 16.85 | 85.26 |
| 31-Mar-20 | 10.32 | 10.07 | 15.35 | – |
| Mar-19 | 6.88 | 6.73 | 15.11 | – |
Five Star Business Finance IPO Lead Managers
Here are the list of Lead managers –
- ICICI Securities Limited
- Edelweiss Financial Services Limited
- Kotak Mahindra Capital Company Limited
- Nomura Financial Advisory and Securities (India) Private Limited
Five Star Business Finance IPO Registrar to offer
Check out the details of the registrar here –
KFin Technologies Private Limited
Selenium, Tower B, Plot No. – 31 and 32 Financial District
Nanakramguda, Serilingampally Hyderabad, Rangareddi 500 032
Telangana, India
Tel: +91 40 6716 2222
E-mail: sbfl.ipo@kfintech.com
Website: www.kfintech.com
Investor grievance e-mail:
einward.ris@kfintech.com
Contact person: M Murali Krishna
SEBI Registration Number: INR000000221
Five Star Business Finance IPO – Other Details
- Statutory Auditor – B S R & Co. LLP
- Legal Counsel to the Company – Cyril Amarchand Mangaldas
- Bankers to the Company – Yes Bank Limited, DCB Bank Limited, Indusind Bank Limited, RBL Bank Limited , and State Bank of India Limited
Five Star Business Finance IPO Verdict by Stock Brokers
The various IPO reviews by some of the notable websites speak well of Five-Star Business Finance. The company has had progressive growth over the years in terms of operations and profits.
We will soon notify you if there is any update on reviews or verdicts.
Five Star Business Finance IPO – Conclusion
Five Star Business Finance is a decades-old financial service company. The company offers valuable services in the form of secured business and other purpose loans to micro-entrepreneurs and self-employed individuals.
The company’s financial standing is firm in the market and performs exceedingly well in states like Tamil Nadu and Andhra Pradesh. The company has a presence in multiple states of India.
Five Star Business Finance itself is a good opportunity for investors to bid their money. Further, in the Five Star Business Finance IPO, you will be bidding for the existing shares currently held by the promoters or other shareholders of the company.
To Subscribe to Five Star Business Finance IPO – Open Demat Account Now!
Five Star Business Finance IPO Review FAQs
Check out the FAQs on Five Star Business Finance IPO –
What is the Issue Size of Five Star Business Finance IPO?
The Company is making an initial public offer of NA equity shares. They vividly portray the aspects of the issue in this article.
You can check the stats on the fresh issue, Offer for sale, and net issue.
What is the Price band of Five Star Business Finance IPO?
The price band for this particular IPO ranges between Rs.NA. As far as the face value of the share is of concern, it is Rs.1 per share.
What is the Five Star Business Finance IPO Open Date?
The opening and closing dates for this IPO have been updated. The IPO is set to open on Nov 9, 2022, while the closing date is set at Nov 11, 2022.
What is the Five Star Business Finance IPO Allotment Date?
They also have the news regarding the respective allotment dates of this IPO.
Basis of Allotment finalization is on Nov 16, 2022, refund initiation is on Nov 17, 2022, credit of shares is on Nov 18, 2022, and share listing date is on Nov 21, 2022.
What is the Five Star Business Finance IPO Listing Date?
Shares of this company shall be listed in the exchanges Nov 21, 2022. The date, when the listing would be done, is stagnant on Nov 21, 2022.
Who is the Registrar of Five Star Business Finance IPO?
One of the reputed registrars is managing the issue of this IPO, i.e. KFin Technologies Private Limited. Their website will help you regarding the further information you are on the lookout for.
Who is the Promoter of Five Star Business Finance IPO?
Here are the promoters of this IPO – Lakshmipathy Deenadayalan, Hema Lakshmipathy, Shritha Lakshmipathy, Matrix Partners India Investment Holdings II, LLC and SCI Investments V. You can refer to the RHP for further information on the promoter. You will find the link to RHP in the article.
What is the GMP of Five Star Business Finance IPO?
They have obtained the GMP of this IPO and it is Disc Further insights of Kostak rate and subject to sauda or SS are as well included in this report.
Is Five Star Business Finance IPO good for Investment?
They have further provided the financial status of the company in this article, from the past few years.
You can refer to the same, and also check the line of operations they are into and then decide to invest in the IPO.
What is the PAT of Five Star Business Finance Company?
They have the information of company financials, and according to that, they have the figures from the last few years to provide. The Profit after tax for the financial years 2021, 2020, and 2019 was Rs. 3,589.9 millions, Rs. 2,619.5 millions, and Rs. 1564.1 millions. Further for the September 2021, the PAT was Rs. 2,175.47 million, respectively.
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