All that you should know about the Company before applying for the IPO
The public issue of equity shares of FIVE-STAR BUSINESS FINANCE LIMITED will open for subscription on November 09, 2022 and closes on November 11, 2022. It is expected to list on the stock exchanges on November 21, 2022. What does the company do? Why is the company going public? Who are its key competitors? Its key strengths, and lot more. Here’s everything that you want to know about the company to analyse the IPO.
Incorporated in 1984, the company is an NBFC-ND-SI (Non-Banking Financial Company - Systemically Important Non-Deposit Taking Company) providing secured business loans to micro-entrepreneurs and self-employed individuals, each of whom are largely excluded from traditional financing institutions. They are headquartered in Chennai with a strong presence in southern India and all of their loans are secured by their borrowers’ property, primarily Self-Occupied Residential Property.
Within a subset of large peers (with more than ₹3000 crores in Gross Term Loans (GTL)), they had the fastest GTL growth, with a CAGR of 65.0% (FY 2017-21) and they had the highest average return on Gross Term Loans of 7.5%, across the period covering FY 2022, 2021 and 2020.
Their target customers include: people in urban and semi-urban locations, as well as in the rural markets of India; who typically derive income from “everyday” cash and carry businesses with a focus on services; with household net cash-flows of approximately ₹25,000 to ₹40,000 per month; who can provide collateral (typically land and buildings) of approximately ₹10 lakh in value; and whose family will act as co-applicants on the loan.
The company has an extensive network of 311 branches, as of June 30, 2022. These branches are spread across approximately 150 districts, eight states and one union territory. Tamil Nadu, Andhra Pradesh, Telangana and Karnataka are key states for the company's business. These key states collectively accounted for approximately 85% of the company's branch network by number, as of June 30, 2022.
Lakshmipathy Deenadayalan, Hema Lakshmipathy, Shritha Lakshmipathy, Matrix Partners India Investment Holdings II, LLC And Sci Investments V
Given below are the objectives of the Company –
The Offer is a 100% Offer for Sale issue. The Company will not receive any proceeds from the Offer for Sale and all proceeds from the Offer will go to the Selling Shareholders.
|IPO Size||₹ 1,960 Crore*|
|Offer Mix||100% Offer For Sell|
|Price Band||₹ 450 - ₹ 474|
|Lot Size||31 Shares (& in multiples thereof)|
|Face Value||₹ 1|
|Application Amount||Min. ₹ 14,694 (1 lot) | Max. ₹ 1,91,022 (13 lots) [at upper price band]|
|Listing on||NSE & BSE|
|Registrar||KFin Technologies Limited|
|Cut-off time for UPI Mandate Confirmation||11-November-2022 (up to 05:00 PM)|
₹ 980 Crore
(50% of the Issue Size)
₹ 294 Crore
(15% of the Issue Size)
₹ 686 Crore
(35% of the Issue Size)
|IPO Opens||November 09, 2022|
|IPO Closes||November 11, 2022|
|Finalization of the basis of allotment||November 16, 2022|
|Unblocking of funds / Initiation of refunds||November 17, 2022|
|Credit of equity shares to Demat accounts||November 18, 2022|
|Listing of equity shares||November 21, 2022|
Apply online in just 5 minutes!Apply Now Investment in securities market is subject to market risks, read all the related documents carefully before investing.