Bookbuilding IPO | ₹1,589 Cr | Listed at BSE, NSE | Wed, Nov 9, 2022 - Fri, Nov 11, 2022
Five-Star Business Finance IPO is a book build issue of ₹1,588.51 crores. The issue is entirely an offer for sale of 3.35 crore shares of ₹1,588.51 crore.
Five-Star Business Finance IPO bidding started from Nov 9, 2022 and ended on Nov 11, 2022. The allotment for Five-Star Business Finance IPO was finalized on Nov 16, 2022. The shares got listed on BSE, NSE on Nov 21, 2022.
Five-Star Business Finance IPO price band is set at ₹474 per share. The lot size for an application is 31. The minimum amount of investment required by an retail is ₹14,694 (31 shares) (based on upper price). The lot size investment for sNII is 14 lots (434 shares), amounting to ₹2,05,716, and for bNII, it is 69 lots (2,139 shares), amounting to ₹10,13,886.
ICICI Securities Ltd. is the book running lead manager and Kfin Technologies Ltd. is the registrar of the issue.
Refer to Five-Star Business Finance IPO RHP for detailed Information.
IPO Open
Wed, Nov 9, 2022
IPO Close
Fri, Nov 11, 2022
Issue Price
₹474 per share
Market Cap (Pre-IPO)
₹13,810.75 Cr
| IPO Date | 9 to 11 Nov, 2022 |
| Listed on | Mon, Nov 21, 2022 |
| Face Value | ₹1 per share |
| Price Band | ₹450 to ₹474 |
| Issue Price | ₹474 per share |
| Lot Size | 31 Shares |
| Sale Type | OFS only |
| Issue Type | Bookbuilding IPO |
| Listing At | BSE, NSE |
| Total Issue Size | 3,35,12,901 shares (agg. up to ₹1,589 Cr) |
| Offer for Sale | 3,35,12,901 shares of ₹1 (agg. up to ₹1,589 Cr) |
| Share Holding Pre Issue | 29,13,66,120 shares |
| Share Holding Post Issue | 29,13,66,120 shares |
| BSE Script Code / NSE Symbol | 543663 / FIVESTAR |
| ISIN | INE128S01021 |
Five-Star Business Finance IPO offers total 3,36,17,061 shares. Out of which 1,68,08,529 (50.00%) allocated to QIB, 44,03,435 (13.10%) allocated to QIB (Ex- Anchor), 50,42,560 (15.00%) allocated to NII 1,17,65,972 (35.00%) allocated to RII and 1,24,05,094 (36.90%) allocated to Anchor investors.
| Investor Category | Shares Offered | Max Allottees |
|---|---|---|
| QIB Shares Offered | 1,68,08,529 (50.00%) | NA |
| − Anchor Investor Shares Offered | 1,24,05,094 (36.90%) | NA |
| − QIB (Ex. Anchor) Shares Offered | 44,03,435 (13.10%) | NA |
| NII (HNI) Shares Offered | 50,42,560 (15.00%) | NA |
| − bNII > ₹10L | 33,61,707 (10.00%) | 7,745 |
| − sNII < ₹10L | 16,80,853 (5.00%) | 3,872 |
| Retail Shares Offered | 1,17,65,972 (35.00%) | 3,79,547 |
| Total Shares Offered | 3,36,17,061 (100.00%) |
Investors can bid for a minimum of 31 shares and in multiples thereof.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 31 | ₹14,694 |
| Retail (Max) | 13 | 403 | ₹1,91,022 |
| S-HNI (Min) | 14 | 434 | ₹2,05,716 |
| S-HNI (Max) | 68 | 2,108 | ₹9,99,192 |
| B-HNI (Min) | 69 | 2,139 | ₹10,13,886 |
Five-Star Business Finance IPO raises ₹588.00 crore from anchor investors. Five-Star Business Finance IPO Anchor bid date is November 7, 2022.
📝 Anchor Investors Letter (PDF)
| Bid Date | Mon, Nov 7, 2022 |
| Shares Offered | 1,24,05,094 |
| Anchor Portion (₹ Cr.) | 588.00 |
| Anchor lock-in period end date for 50% shares (30 Days) | Fri, Dec 16, 2022 |
| Anchor lock-in period end date for remaining shares (90 Days) | Tue, Feb 14, 2023 |
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 | 30 Jun 2022 | 31 Mar 2022 | 30 Jun 2021 | 31 Mar 2021 | 31 Mar 2020 |
|---|---|---|---|---|---|
| Assets | 6,471.55 | 6,343.07 | 6,129.10 | 5,793.61 | 4,353.15 |
| Total Income | 339.06 | 1,256.17 | 300.76 | 1,051.26 | 787.35 |
| Profit After Tax | 139.43 | 453.55 | 101.57 | 358.99 | 261.95 |
| NET Worth | 3,856.98 | 3,710.35 | 2,944.41 | 2,318.17 | 1,944.58 |
| Reserves and Surplus | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Borrowing | 2,520.32 | 2,558.83 | 3,121.22 | 3,425.20 | 2,363.69 |
| Amount in ₹ Crore | |||||
The Company proposes to utilise the Net Proceeds from the Issue towards the following objects:
| # | Issue Objects | Est Amt (₹ Cr.) |
|---|---|---|
| 1 | To carry out the Offer for Sale and achieve the benefits of listing the Equity Shares on the Stock Exchanges |
| KPI | |
|---|---|
| ROE | 13.86 |
| Debt/Equity | 0.69 |
| RoNW | 13.86 |
| EBITDA Margin | 73.13% |
| Pre IPO | Post IPO | |
|---|---|---|
| EPS (₹) | 16.09 | |
| P/E (x) | 24.76 | |
| Promoter Holding | 40.07% | 33.65% |
| Market Cap | ₹13,810.75 Cr. |
The Five Star Business Finance IPO is subscribed 0.7 times on November 11, 2022 7:00:00 PM (Day 3). 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) | Shares Offered | Shares bid for |
|---|---|---|---|
| QIB | 1.77 | 87,11,132 | 1,54,45,967 |
| NII | 0.61 | 65,33,350 | 40,12,020 |
| bNII (bids above ₹10L) | 0.78 | 43,55,566 | 34,04,234 |
| sNII (bids below ₹10L) | 0.28 | 21,77,784 | 6,07,786 |
| Retail | 0.11 | 1,52,44,484 | 17,46,044 |
| Total | 0.7 | 3,04,88,966 | 2,12,04,031 |
| # | Issue Expenses | Est Amt (₹ Cr.) |
|---|---|---|
| 1 | Book Running Lead Managers’ fees | 35.73 |
| 2 | Commission/processing fee for SCSBs, Sponsor Banks and Bankers to the Offer. Brokerage, underwriting commission and selling commission and bidding charges for Members of the Syndicate, Registered Brokers, RTAs and CDPs | 2.02 |
| 3 | Fees payable to the Registrar to the Offer | 0.04 |
| 4 | Fees payable to the other advisors to the Offer | 11.48 |
| 5 | Listing fees, SEBI filing fees, upload fees, BSE & NSE processing fees, book building software fees and other regulatory expenses | 4.91 |
| 6 | Printing and stationery | 0.91 |
| 7 | Advertising and marketing expenses | 12.79 |
| 8 | Fee payable to legal counsels | 9.13 |
| 9 | Miscellaneous | 3.59 |
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.
| Price Details | BSE | NSE |
|---|---|---|
| Final Issue Price | ₹474.00 | ₹474.00 |
| Open | ₹449.95 | ₹468.80 |
| Low | ₹448.20 | ₹448.20 |
| High | ₹539.90 | ₹543.60 |
| Last Trade | ₹489.50 | ₹490.00 |
Five-Star Business Finance IPO is a main-board IPO of 3,35,12,901 equity shares of the face value of ₹1 aggregating up to ₹1,589 Crores. The issue is priced at ₹474 per share. The minimum order quantity is 31.
The IPO opens on Wed, Nov 9, 2022, and closes on Fri, Nov 11, 2022.
Kfin Technologies Ltd. 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 Wed, Nov 9, 2022 and closes on Fri, Nov 11, 2022.
Five-Star Business Finance IPO lot size is 31, and the minimum amount required for application is ₹14,694.
You can apply in Five-Star Business Finance IPO online using either UPI or ASBA as a 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 applying IPO online through Zerodha, Upstox, 5Paisa, Nuvama, 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 Fri, Nov 18, 2022. Check the Five-Star Business Finance IPO allotment status.
The Five-Star Business Finance IPO listing date is on Mon, Nov 21, 2022.
