Five Star Business Finance IPO
Non-deposit-taking NBFC Five Star Business Finance has received 70 percent subscription to its initial public offering that closes today, as investors bought 2.12 crore equity shares against 3.04 crore shares on offer.
Qualified institutional investors have bid for shares 1.77 times the allotted quota, while so far there has been lukewarm response from retail and non-institutional investors (high networth individuals).
Retail investors bought 11 percent shares and non-institutional investors 61 percent shares of the portions set aside for them.
Any public issue to get successfully sail through has to get at least 90 percent subscription and the reserved quota of qualified institutional buyers has to be fully subscribed.
Five Star Business Finance intends to raise Rs 1,960 crore via its maiden public issue, with a price band of Rs 450-474 per share.
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The offer comprises only an offer for sale of 4.13 crore shares by promoters and investors. Promoters SCI Investments V and Matrix Partners India Investment Holdings II, LLC will be offloading their shares via offer for sale.
Matrix Partners India Investment Holdings II, LLC, Norwest Venture Partners X – Mauritius, and TPG Asia VII SF Pte Ltd are the investors selling shares via OFS.
Five Star Finance Business already mopped up Rs 588 crore through its anchor book, hence accordingly, the issue size has been reduced to 3.04 crore shares, from 4.13 crore shares.
The offer was opened for bidding on November 9.
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As it is an offer for sale, the company will not get a single penny from the IPO and all the money will to selling shareholders.
November has been a very busy month for the primary market as so far five IPOs have been launched during the month, including Five Star Business Finance. Keystone Realtors, Kaynes Technology India, Archean Chemical Industries, and Inox Green Energy Services are other four IPOs.