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Five Star Business Finance IPO is a book built issue of Rs 1,593.45 crores. The issue is entirely an offer for sale of 3.36 crore shares.
Five Star Business Finance IPO bidding started from November 9, 2022 and ended on November 11, 2022. The allotment for Five Star Business Finance IPO was finalized on Wednesday, November 16, 2022. The shares got listed on BSE, NSE on November 21, 2022.
Five Star Business Finance IPO price band is set at ₹450 to ₹474 per share. The minimum lot size for an application is 31 Shares. The minimum amount of investment required by retail investors is ₹14,694. The minimum lot size investment for sNII is 14 lots (434 shares), amounting to ₹205,716, and for bNII, it is 69 lots (2,139 shares), amounting to ₹1,013,886.
ICICI Securities Limited, Edelweiss Financial Services Ltd, Kotak Mahindra Capital Company Limited and Nomura Financial Advisory And Securities (India) Pvt Ltd are the book running lead managers of the Five Star Business Finance IPO, while Kfin Technologies Limited is the registrar for the issue.
Refer to Five Star Business Finance IPO RHP for detailed information.
| IPO Date | November 9, 2022 to November 11, 2022 |
| Listing Date | November 21, 2022 |
| Face Value | ₹1 per share |
| Price Band | ₹450 to ₹474 per share |
| Lot Size | 31 Shares |
| Total Issue Size | 33,617,061 shares (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 |
| Share holding pre issue | 291,366,120 |
| Share holding post issue | 291,366,120 |
Five Star Business Finance IPO offers 30,488,966 shares. 8,711,132 (28.57%) to QIB, 6,533,350 (21.43%) to NII, 15,244,484 (50.00%) to RII. 491,757 RIIs will receive minimum 31 shares and 5,017 (sNII) and 10,035 (bNII) will receive minimum 434 shares. (in case of oversubscription)
| Investor Category | Shares Offered | Maximum Allottees |
|---|---|---|
| Anchor Investor Shares Offered | - | NA |
| QIB Shares Offered | 8,711,132 (28.57%) | NA |
| NII (HNI) Shares Offered | 6,533,350 (21.43%) | |
| bNII > ₹10L | 4,355,566 (14.29%) | 10,035 |
| sNII < ₹10L | 2,177,784 (7.14%) | 5,017 |
| Retail Shares Offered | 15,244,484 (50.00%) | 491,757 |
| Total Shares Offered | 30,488,966 (100%) |
Five Star Business Finance IPO opens on November 9, 2022, and closes on November 11, 2022.
| IPO Open Date | Wednesday, November 9, 2022 |
| IPO Close Date | Friday, November 11, 2022 |
| Basis of Allotment | Wednesday, November 16, 2022 |
| Initiation of Refunds | Thursday, November 17, 2022 |
| Credit of Shares to Demat | Friday, November 18, 2022 |
| Listing Date | Monday, November 21, 2022 |
| Cut-off time for UPI mandate confirmation | 5 PM on November 11, 2022 |
Investors can bid for a minimum of 31 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 31 | ₹14,694 |
| Retail (Max) | 13 | 403 | ₹191,022 |
| S-HNI (Min) | 14 | 434 | ₹205,716 |
| S-HNI (Max) | 68 | 2,108 | ₹999,192 |
| B-HNI (Min) | 69 | 2,139 | ₹1,013,886 |
| Lot Size Calculator | |||
Lakshmipathy Deenadayalan, Hema Lakshmipathy, Shritha Lakshmipathy, Matrix Partners India Investment Holdings II, LLC and SCI Investments V are the company promoters.
| Share Holding Pre Issue | 40.07% |
| Share Holding Post Issue | 33.65% |
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.
| 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 | |||||
The market capitalization of Five Star Business Finance IPO is Rs 13810.75 Cr.
| Pre IPO | Post IPO | |
|---|---|---|
| P/E (x) | 24.76 |
The Company will not receive any proceeds from the Offer and all such proceeds will go to the Selling Shareholders.
[Dilip Davda] 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...
The Five Star Business Finance IPO is subscribed 0.70 times on November 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 succeeds despite being un-subscribed (received 0.70% subscription). Being 100% OFS, the company adjusted the issue size with the subscription received.
As against an overall book size of Rs 1381 crs, it garnered Rs 1005.06 crs at the upper band. For the IPO to be successful, it has filled all criteria to meet the required norms highlighted below:
All the 3 required norms are successfully met. The first and second criteria are met and the third pointer is explained below.
The total implied market cap of Five Star Business Finance IPO is Rs 13810 cr. The total market is calculated by multiplying the total number of outstanding shares (291,366,120 shares) by the upper band of the IPO Price which is Rs Rs 474. So, 10% of the market cap is 1381 cr, which they had to raise. The anchor book garnered Rs 588 cr and the 1005 cr till the last day of Subscription. The total is Rs 1593 cr which is higher than Rs 1381 cr requirement.
| Listing Date | November 21, 2022 |
| BSE Script Code | 543663 |
| NSE Symbol | FIVESTAR |
| ISIN | INE128S01021 |
| Final Issue Price | ₹474 per share |
| Price Details |
|---|
| Final Issue Price |
| Open |
| Low |
| High |
| Last Trade |
| BSE |
|---|
| ₹474.00 |
| ₹449.95 |
| ₹448.20 |
| ₹539.90 |
| ₹489.50 |
| NSE |
|---|
| ₹474.00 |
| ₹468.80 |
| ₹448.20 |
| ₹543.60 |
| ₹490.00 |
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/
Kfin Technologies Limited
Phone: 04067162222, 04079611000
Email: einward.ris@kfintech.com
Website: https://kosmic.kfintech.com/ipostatus/
Five Star Business Finance IPO is a main-board IPO of 33,617,061 equity shares of the face value of ₹1 aggregating up to ₹1,593.45 Crores. The issue is priced at ₹450 to ₹474 per share. The minimum order quantity is 31 Shares.
The IPO opens on November 9, 2022, and closes on November 11, 2022.
Kfin Technologies Limited is the registrar for the IPO. The shares are proposed to be listed on BSE, NSE.
Zerodha customers can apply online in Five Star Business Finance IPO using UPI as a payment gateway. Zerodha customers can apply in Five Star Business Finance IPO by login into Zerodha Console (back office) and submitting an IPO application form.
Steps to apply in Five Star Business Finance IPO through Zerodha
Visit Zerodha IPO Application Process Review for more detail.
The Five Star Business Finance IPO opens on November 9, 2022 and closes on November 11, 2022.
Five Star Business Finance IPO lot size is 31 Shares, and the minimum amount required is ₹14,694.
You can apply in Five Star Business Finance IPO online using either UPI or ASBA as payment method. ASBA IPO application is available in the net banking of your bank account. UPI IPO application is offered by brokers who don't offer banking services. Read more detail about apply IPO online through Zerodha, Upstox, 5Paisa, Nuvama, ICICI Bank, HDFC Bank and SBI Bank.
The finalization of Basis of Allotment for Five Star Business Finance IPO will be done on Wednesday, November 16, 2022, and the allotted shares will be credited to your demat account by Friday, November 18, 2022. Check the Five Star Business Finance IPO allotment status.
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