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 311 branches, as of June 30, 2022, spread across eight states and one union territory and approximately 150 districts across India, 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 instalment-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 230,175 and 217,745 as of June 30, 2022, and March 31, 2022, respectively.
With more than 30,000 million in AUM, the company has the fasted AUM growth among the compared peers. As of June 30, 2022, and March 31, 2022, the Total Borrowings were Rs 25,203.19 million and Rs 25,588.31 million, respectively.
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 |
Objects of the Issue
The Company will not receive any proceeds from the Offer and all such proceeds will go to the Selling Shareholders.
Five Star Business Finance IPO Details
| IPO Date | Nov 9, 2022 to Nov 11, 2022 |
| Listing Date | [.] |
| 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 | 41,351,266 shares of ₹1 (aggregating up to ₹1,960.01 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. |
Five Star Business Finance IPO Tentative Timetable
Five Star Business Finance IPO opens on Nov 9, 2022, and closes on Nov 11, 2022. The Five Star Business Finance IPO bid date is from Nov 9, 2022 10.00 A.M. to Nov 11, 2022 5.00 P.M. The Cut-off time for UPI Mandate confirmation is 5 PM on the issue closing day.
| 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 |
Five Star Business Finance IPO Lot Size
The Five Star Business Finance IPO lot size is 31 shares. A retail-individual 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% |
Five Star Business Finance IPO Review
This segment of small customer financing is getting crowded and most competitive. However, considering the recent financial performance and the confidence expressed by the management in maintaining the growth pattern, well-informed investors may consider parking funds with a long-term perspective. Read detail review…
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Five Star Business Finance IPO Prospectus
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Company Contact Information
Five Star Business Finance Ltd
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 Registrar
KFin Technologies Limited
Phone: 04067162222, 04079611000
Email: einward.ris@kfintech.com
Website: https://karisma.kfintech.com/