Five Star Business Finance makes its stock market debut; closes above a 3% premium to its issue price


Mr. Lakshmipathy Deenadayalan, Chairman and Managing Director, Mr. Srikanth Gopalakrishnan, Chief Financial Officer and Mr. Rangarajan Krishnan, CEO, Five Star Business at the NSE Listing Ceremony


BOMBAI, 21 NOVEMBER 2022 (GPN): Five Star Business Finance Limited, which provides secured business loans to micro-entrepreneurs and the self-employed, each largely excluded by traditional finance institutions (“the Company”), makes a strong start on the stock exchanges to close a premium of 3%. at its issue price.

The certificate which was listed at Rs 449.95 per share on BSE and Rs 468.80 per share on NSE, closed at Rs 489.50 per share on BSE with a premium of 3.27%, and closed at Rs 489 95 per share on NSE, with a premium of 3.36%.

According to NSE, the total amount traded stood at 139.33 lakh shares, and on BSE, the total amount traded stood at 6.4 lakh shares. The total turnover (BSE + NSE) on day 1 stood at Rs 716.70 crore.

Mr. Lakshmipathy Deenadayalan, Chairman and Managing Director of Five Star Business Finance Limited said “It has been a long journey and we have worked very hard to get here. We are also pleased with the response to our IPO and are confident that we will be able to deliver the numbers we promised to reiterate confidence and faith placed in us by our investors.

The market capitalization of the company at the closing price stood at Rs. 14,262.37 Crore according to BSE and Rs. 14,275.48 Crore according to NSE.

The issue is a sale offering with a final size of ₹1,588 crore by the institutional promoters and institutional investors of the company.

Five Star Business Finance Limited (FSBFL), has a strong presence in South India, and all loans are secured by the property of the borrowers, mostly self-occupied residential properties (SORP), according to the CRISIL report, among peers. FSBFL was established by VK Ranganathan and started operations in 1984, focusing on consumer loans and auto finance.

Assets under management stood at Rs. 5,300 crore as of June 30, 2022, compared to Rs. 4,400 crore as of March 31, 2021. As of June 30, 2022, Tamil Nadu, Karnataka, Andhra Pradesh and Telangana accounted for 85 % of overall portfolio. Five Star Business has the second highest capital adequacy ratio of 75.2% after Aptus Value Housing (85.6%) among peers compared in 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 workforce of 6,077 employees, the actual counts increased from 33,157 in fiscal year 2018 to 230,175 as of June 30, 2022.

ICICI Securities Limited, Edelweiss Financial Services Limited, Kotak Mahindra Capital Company Limited and Nomura Financial Advisory and Securities (India) Private Limited are the lead managers of the issue.


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