Sunday, November 14, 2021

Five Star Business Finance files for Rs2752cr IPO


Five Star Business Finance files for Rs2752cr initial public offering

The Company has had the fastest AUM growth among its peers, according to the CRISIL Report.

Initial Public Offer, IPONon-Banking Financial Company, Five Star Business Finance Limited (FSBFL) has filed preliminary papers with capital markets regulator Sebi to raise up to Rs2,752cr through an Initial Public Offering.

The initial public offer (IPO) is a complete offer for sale of Rs 257.10 crore by SCI Investments V, Rs568.92cr by Matrix Partners India Investment Holdings II, LLC, Rs 9.56 crore by Matrix Partners India Investments II Extension, LLC, Rs385.65cr by Norwest Venture Partners X – Mauritius, Rs1349.78cr by TPG Asia VII SF Pte. Ltd., Rs 180.93 crore by a part of the Promoter Group, draft red herring prospectus (DRHP) filed with Sebi showed on Tuesday.

At present, TPG Asia VII SF Pte. Ltd. holds 20.99 per cent, Matrix Partners India Investments Holdings II, LLC, holds 14.09 per cent, Individual Promoters Lakshmipathy Deenadayalan, Hema Lakshmipathy and Shritha Lakshmipathy combined at 20.26% and Norwest Venture Partners X – Mauritius own 13.01 per cent and 10.22 per cent stake in the company, respectively.

The company will not receive any proceeds from the offer.

Chennai-headquartered NBFC, Five Star Business Finance, provides secured business loans to micro-entrepreneurs and self-employed individuals, each of whom is largely excluded by traditional financing institutions. It has a strong presence in south India, and all loans are secured by the borrowers’ property, predominantly being self-occupied residential property (SORP). The Company has had the fastest AUM growth among its peers, according to the CRISIL Report.

Disclaimer- The information on this blog are based on my personal opinion and experience, it should not be considered professional financial investment advice and in no way it should be considered as a tip. We does not take any compensation of any kind whatsoever from any reader, user and company that are mention on this website. We are not SEBI registered financial advisor or analyst.

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