A clutch of investors, namely Peak XV Partners (formerly Sequoia Capital), TPG and Matrix Partners, is planning to sell part of their stake in non-bank lender Five Star Business Finance via a block deal, multiple industry sources familiar with the development told Moneycontrol.
"These three investors are planning to divest part stake in a block deal with a combined base size worth $150 million and an upsize option of around $75 million," said one of the persons cited above.
A second person told Moneycontrol that the proposed block deal was likely to be launched soon with investment banks Kotak Mahindra Capital and ICICI Securities acting as advisors.
Further, another source added that at base size, around 5.8 percent combined stake would be sold by the three investors and with the upsize option, around 8.8 percent stake would be sold.
All the three persons above spoke on the condition of anonymity.
Moneycontrol could not elicit an immediate response from Sequoia, TPG, Matrix Partners, Kotak Mahindra Capital and ICICI Securities.
The share price of Five Star Business Finance has risen by nearly 30 percent in the last six months. The firm saw a block deal from its investors in September as well. Back then, Norwest Ventures, TPG and Matrix Partners had sold stake worth Rs 1,863 crore.
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