MUMBAI, 11 NOVEMBER, 2022 (GPN): Five Star Business Finance Limited, provides secured business loans to micro-entrepreneurs and self-employed individuals, each of whom are largely excluded by traditional financing institutions has received bids of 2,12,03,845 shares against the offered 3,04,88,966 equity shares (at the lower end of the price band), at a price band of ₹450-474, according to the data available on the stock exchanges. Overall the issue was subscribed 0.70 times on the first day of bidding. If the higher end of the price band is taken, the offered shares would have been 2,89,46,203 shares and the subscription would have been 0.81.
Worked out assuming the lower end of the price band, the reserved portion for qualified institutional buyer was subscribed 1.77 times. Non-Institutional segment saw a response of 0.61 times. The Retail Portion was subscribed 0.11 times. The issue kicked off for subscription on Wednesday, November 09, and will close on Friday, November 11, 2022.
Five Star Business Finance Ltd raised Rs 588 crore from foreign investors ahead of IPO. Overall it saw a subscription of 73% and at its upper price band including the anchor demand they have garnered Rs 1593.06 crore.
The offer was an Offer for Sale aggregating to ₹ 1960 crore by the company’s promoters and existing shareholders.
ICICI Securities Limited, Kotak Mahindra Capital Company Limited, Edelweiss Financial Services Limited and Nomura Financial Advisory and Securities (India) Private Limited are the book running lead managers to the issue.
Company Information
Five Star Business Finance, has a strong presence in south India, and all loans are secured by the borrowers’ property, predominantly being self-occupied residential property (SORP), according to the CRISIL Report, among its peers. FSBFL, founded by V.K Ranganathan commenced operations in 1984, with a focus on consumer loans and vehicle finance.
Asset Under Management stood at Rs. 5300 crore as of June 30 , 2022, compared to Rs. 4400 crores as of March 31, 2021. As of June 30, 2022, Tamil Nadu, Karnataka, Andhra Pradesh and Telangana accounted for 85% of the overall portfolio. Five Star Business has the second highest Capital Adequacy Ratio of 75.2% after Aptus Value Housing (85.6%) among the compared peers as of March 2022.
As of June 30, 2022, it has a network of 311 branches in 150 districts, 8 states and 1 union territory. With a work force of 6077 employees, live accounts grew from 33,157 in fiscal 2018 to 230,175 as of June 30, 2022.
| FIVE STAR BUSINESS FINANCE LIMITED
Last updated on |
||||
| Sr.No. | Category | No.of shares offered / reserved | No. of shares bid for | No. of times of total meant for the category |
| 1 | Qualified Institutional Buyers (QIBs) | 87,11,132 | 1,54,45,967 | 1.77 |
| 1(a) | Foreign Institutional Investors (FIIs) | – | 1,03,37,322 | – |
| 1(b) | Domestic Financial Institutions(Banks/ Financial Institutions(FIs)/ Insurance Companies) | – | 31,13,578 | – |
| 1(c) | Mutual Funds | – | 13,53,305 | – |
| 1(D) | Others | – | 6,41,762 | – |
| 2 | Non Institutional Investors(NIIS) | 65,33,350 | 40,12,020 | 0.61 |
| 2.1 | Non Institutional Investors(Bid amount of more than Ten Lakh Rupees) | 43,55,566 | 34,04,234 | 0.78 |
| 2.1(a) | Corporates | – | 5,20,490 | – |
| 2.1(b) | Individuals (Other than RIIs) | – | 28,31,726 | – |
| 2.1(c) | Others | – | 52,018 | – |
| 2.2 | Non Institutional Investors(Bid amount of more than Two Lakh Rupees and upto 10 lakh rupees) | 21,77,784 | 6,07,786 | 0.28 |
| 2.2(a) | Corporates | – | 2,542 | – |
| 2.2(b) | Individuals (Other than RIIs) | – | 4,96,620 | – |
| 2.2(c) | Others | – | 1,08,624 | – |
| 3 | Retail Individual Investors (RIIs) | 1,52,44,484 | 17,45,858 | 0.11 |
| 3(a) | Cut Off | – | 14,89,674 | – |
| 3(b) | Price Bids | – | 2,56,184 | – |
| 4 | Employee Reserved | – | – | – |
| 4(a) | Employee (Cut off) | – | – | – |
| 4(b) | Employee (Price) | – | – | – |
| 5 | Reservation PortionShareholder | – | – | – |
| 5(a) | RPS (Cut off) | – | – | – |
| 5(b) | RPS (Price) | – | – | – |
| Total | 3,04,88,966 | 2,12,03,845 | 0.70 | |
Note: The Exchange calculates the demand on the lower price band
BSE+NSE Cumulative demand link: https://www.bseindia.
Be the first to comment on "Five Star Business Finance IPO sees a successful closure Against an overall book size of Rs 1372 crs, it garnered Rs 1005.06 crs at the upper band"