Let’s have a detailed review of the company and analytics of the Five Star Business Finance IPO release date, IPO offer price, subscription, Five Star Business Finance Limited IPO allotment, grey market price, and other details like the company’s background, its financial positions, its promoters, and other related things.

Face ValueRs 1
Price BandRs [●]
Listing AtBSE, NSE
Min. Order QuantityNA
Listing DateNA
Offer for SaleRs 27,519.45 Million
Fresh IssueRs Million
IPO SizeRs 27,519.45 Million
Tick Size1

Five Star Business Finance IPO is listed at a [●] premium. Check out the live share price by clicking on the below link.


Five Star Business Finance IPO – Summary

Five Star Business Finance IPOThey are an NBFC-ND-SI providing secured business loans to micro-entrepreneurs and self-employed individuals, each of whom is largely excluded by traditional financing institutions. They are headquartered in Chennai, Tamil Nadu with a strong presence in south India, and all of their loans are secured by their borrowers’ property, predominantly being SORP.

Five Star Business Finance are among the three best for Gross Non-Performing Assets (being NPAs that are 90+ Days-Past-Due (“DPD”)) (“Gross NPA”) as a percentage of AUM (they had a Gross NPA as a percentage of AUM of 1.02%) as of March 31, 2021, while they have the best asset quality among lenders identified by CRISIL as engaged in extending MSME business loans, with other lenders reporting 90+ DPD in excess of 2%.

The Promoter of this company is LAKSHMIPATHY DEENADAYALAN, HEMA LAKSHMIPATHY, SHRITHA LAKSHMIPATHY, MATRIX PARTNERS INDIA INVESTMENT HOLDINGS II, LLC, AND SCI INVESTMENTS V. The lead manager to the issue is ICICI Securities Limited, Edelweiss Financial Services Limited, Kotak Mahindra Capital Company Limited, and Nomura Financial Advisory and Securities
(India) Private Limited and the Registrar to this issue is KFin Technologies Private Limited.


Five Star Business Finance IPO Date

The opening and the closing date of the Five Star Business Finance IPO are not available yet.

Check out Related IPO Links:

Five Star Business Finance IPO GMP
Allotment – Five Star Business Finance IPO

Five Star Business Finance IPO Subscription

Day / DateQIBNIIRIITotal Subscription
1st Day – 
2nd Day –  
3rd Day – 
Shares Offered or Net Issue

The shares subscribed by the public will be updated here.

Check Five Star Business Finance IPO LIVE Subscription

  • Five Star Business Finance IPO LIVE Bid details on BSE
  • Five Star Business Finance IPO LIVE Bid details on NSE

For the Latest Bid details click on the above links.


Five Star Business Finance IPO Allotment Status

Here, you can find the Allotment Status of this IPO.

Allotment of Equity Shares pursuant to the Fresh Issue and transfer of the Offered Shares of the Promoter Selling Shareholders pursuant to the Offer for Sale to the successful Bidders. However, the Allotment Status is not yet disclosed.

Five Star Business Finance Limited IPO Listing Date

Find the dates below on basis of allotment, refund, listing, and more:

Basis of Allotment Finalization
Refunds Initiation
Credit of Shares to Demat Account
Share Listing Date

Five Star Business Finance IPO Price

The face value of each share is Rs.1, but the price band of the IPO is Rs.[●] 


Five Star Business Finance IPO Size

This Initial Public Issue of X Equity Shares of Rs.1 each for cash at a price of Rs.[●]  per equity share aggregating to Rs.27,519.45 Million.


Five Star Business Finance IPO Share Offering

Fresh Issue: The Issue (excluding the Market Maker Reservation Portion) of [●] Equity Shares of Rs.1/ each.

Issue Size: X Equity Shares of Rs.1 each, aggregating to Rs.27,519.45 Million


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    Five Star Business Finance IPO – Live Performance

    The listing date of this IPO is [●]. You can check the live performance of the IPO here, only after it is listed on exchanges.

    Live IPO Performance – Five Star Business Finance Share Price

    Five Star Business Finance IPO Grey Market Premium

    The Five Star Business Finance Limited IPO Grey Market Premium price is Rs X, the Kostak rate is Rs X and the Subject to Sauda is X. 


    Five Star Business Finance IPO – Company Overview

    They had 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 their key states.

    Such key states collectively accounted for approximately 85% of their branch network by number, as of September 30, 2021. They started their operations in Chennai, Tamil Nadu, and have increased the scale of their operations through growth in the number of branches by adopting a calibrated strategy of contiguous expansion across geographies where there is substantial demand for their offering.

    They have leveraged established processes and technology in many of their business processes and reduced the turnaround time from login to loan sanction from an average of 20 days for loans sanctioned in Financial Year 2018 to 17 days, and 15 days in Financial Year 2019, and 2020 respectively.

    There has been an increase in the turnaround time during the Financial Year 2021 and for the six months ending September 30, 2021, due to the onset of COVID-19 and the related periodic disruptions such as the lockdowns.


    Five Star Business Finance IPO – Financial Statements

    A quick look into the past financial performance of the company to understand its performance of the business and evaluate the growth prospectus:

    Financial Summary:

    Amount (in INR & Million)
    31-Mar-2131-Mar-20Mar-19
    Total Assets57936.1143531.5423611.70
    *Total Revenue10512.557873.474089.86
    Total Expense5748.154380.461908.82
    Profit After Tax3589.942619.511564.14

    Earnings per Equity Share (in Million)

    31-Mar-2131-Mar-20Mar-19
    Basic & Diluted14.0110.326.88

     

    Further, their PAT for the period ended on March 31, 2021, March 31, 2020, and March 31, 2019, were Rs. 3589.94 Million, Rs. 2619.51 Million, and Rs. 1564.14 Million respectively.


    Five Star Business Finance IPO – Promoters

    The Promoter of this company is:

    1. LAKSHMIPATHY DEENADAYALAN,
    2. HEMA LAKSHMIPATHY,
    3. SHRITHA LAKSHMIPATHY,
    4. MATRIX PARTNERS INDIA INVESTMENT HOLDINGS II,
    5. LLC AND SCI INVESTMENTS V

    List of Related Parties (Key Managerial Personnel)

    • Lakshmipathy Deenadayalan, Chairman and Managing Director
    • Anand Raghavan, Independent Director
    • Srinivasaraghavan Thiruvallur Thattai, Independent Director
    • Bhama Krishnamurthy, Independent Director
    • Ramanathan Annamalai, Independent Director
    • Ravishankar Ganapathyagraharam Venkataraman, Non-Executive Director

    Five Star Business Finance IPO – Promoters Holding

    • Pre Issue Share Holding – %
    • Pos Issue Share Holding – %

    Five Star Business Finance IPO Offer Details or Issue Details

     Particulars No. Of Equity Shares
     Equity Shares Offered Up to X Equity Shares aggregating up to Rs.27,519.45 Million
    of which:
    Issue Reserved for the Market MakersUp to [●] Equity Shares aggregating up to Rs.[●]
    Million
    Net Issue to the PublicUp to [●] Equity Shares aggregating up to Rs.[●]
    Million
    Of which:
    Retail Investors Portion Not less than [●] Equity Shares
    Other than Retail Individual InvestorsNot more than [●] Equity Shares
     Equity Shares outstanding prior to the Issue290,135,120 Equity Shares
     Equity Shares outstanding after the IssueX Equity Shares

    Five Star Business Finance IPO Issue Object

    Their Company proposes to utilize the Net Proceeds towards funding the following objects:

    1. To carry out the Offer for Sale; and 

    2. To achieve the benefits of listing the Equity Shares on the Stock Exchanges. 

    Five Star Business Finance IPO – Business Strategy

    • Increase penetration in existing markets through increasing branch staff numbers, increasing their branch network in the existing geographies, and diversifying to contiguous markets;
    • Continue to focus on small business owners and self-employed individuals primarily in the semi-urban and urban markets of India, as well as in rural markets where CRISIL expects faster growth in bank credit activity as financial
    • Awareness increases;
    • Optimize their borrowing costs, reduce operating expenses further and continue to expand and diversify their lender base;
    • Continue to invest in technology and data analytics to build a scalable and efficient operating model / to improve customer experience, increase productivity and decrease costs;
    • Focus on enhancing their risk management framework; and
    • Enhance their brand recall to attract new customers.

    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 their 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 their ability to maintain a robust asset quality;
    • Ability to successfully expand to new underpenetrated geographies through a calibrated expansion strategy;\
    • 100% in-house sourcing, the 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.

    The relevant quantitative factors are:

    Basic & Diluted EPSRONW (%)NAV (Rs.)
    31-Mar-2114.0116.8585.26
    31-Mar-2010.3215.35
    Mar-196.8815.11

    Five Star Business Finance IPO: Competitive Peers

    Face Value (Rs.)P/EEPS  (Rs.)Return on Net Worth (%)Total Income (Rs. in Millions)
    Five Star Business Finance Limited1[●]14.0116.8510,512.55
    Listed Peers
    Aavas Financiers1076.4936.8611.2511,053.351
    Aptus Value262.595.569.876,552.42
    Au Small Finance Bank1032.3238.1917.2663,658.84

    Five Star Business Finance IPO Lead Managers

    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 IPO Registrar to offer

    Registrar to the Offer
    KFin Technologies Private Limited
    (Formerly known as Karvy Fintech 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, Chartered Accountants
    • 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 IPO Review by Stock Brokers

    Top Stock Brokers ReviewCompany ReputationCompetitive EdgeFinancial StatementPopularity IndexPromoters Reputation
    Angel Broking7.5/107.4/108.5/108.1/107.1/10
    Sharekhan7.2/107.1/108.6/108.1/107.2/10
    Kotak Securities7.3/107.5/108.4/108.1/107.3/10
    ICICI Direct7.3/107.3/108.7/108.1/107.1/10
    IIFL7.5/107.2/108.8/108.0/107.1/10
    Edelweiss7.5/107.4/108.4/108.3/107.2/10
    Zerodha7.4/107.1/108.5/108.1/107.0/10
    5Paisa7.1/107.1/108.4/108.1/107.1/10
    Karvy7.4/107.3/108.2/108.1/107.1/10
    Motilal Oswal7.1/107.1/108.6/108.3/107.2/10

     


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      Five Star Business Finance Limited IPO News

      News 1 – IPO DRHP Download

      News 2 – IPO RHP Prospectus Download


      Five Star Business Finance IPO Review FAQs

      Ques – What is the Issue Size of Five Star Business IPO?

      Answer – 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.

      Ques – What is the Price band of Five Star Business IPO?

      Answer – The price band for this particular IPO ranges between NA. As far as the face value of the share is of concern, it is Rs.1 per share.

      Ques – What is the Five Star Business Finance IPO Open Date?

      Answer – The opening and closing dates for this IPO have been updated. The IPO is set to open on NA, while the closing date is set at NA.

      Ques – What is the Five Star Business Finance IPO Allotment Date?

      Answer – They also have the news regarding the respective allotment dates of this IPO. Basis of Allotment finalization is on NA, refund initiation is on NA, credit of shares is on NA, and share listing date is on NA.

      Ques – What is the Five Star Business Finance IPO Listing Date?

      Answer – Shares of this company shall be listed in the exchanges NA. The date, when the listing would be done, is stagnant on NA.

      Ques – Who is the Registrar of Five Star Finance IPO?

      Answer – 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.

      Ques – Who is the Promoter of Five Star Finance IPO?

      Answer – 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.

      Ques – What is the GMP of Five Star Finance IPO?

      Answer – They have obtained the GMP of this IPO and it is NA. Further insights of Kostak rate and subject to sauda or SS are as well included in this report.

      Ques – Is Five Star Business IPO good for Investment?

      Answer – 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.

      Ques – What is the PAT of Five Star Business Finance?

      Answer – They have the information of company financials, and according to that, they have the figures from the last few years to provide. PAT for the financial year 2021 in Million is 3589.94, 2020 is 2619.51, 2019 is 1564.14.


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