Five Star Business Finance IPO to open on November 9: Check details

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Non-banking financial company Five Star Business Finance Ltd's initial public offering will open on November 9 and close on November 11. The anchor investors will start bidding on  November 7.

The basis of allotment will be on November 16, initiation of refunds will be on November 17 and credit of equity shares to allottees will be on November 18. The shares will be listed on November 21.

The south-based lender has cut its IPO size to Rs 1,960 crore from Rs 2,752 crore earlier planned. The issue will be a pure offer for sale (OFS).

The OFS comprises up to Rs 166.74 crore by SCI Investments V, up to Rs 719.41 crore by Matrix Partners India Investment Holdings II, LLC, up to Rs 12.09 crore by Matrix Partners India Investments II Extension LLC, up to Rs 361.45 crore by Norwest Venture Partners X Mauritius and up to Rs 700.32 crore by TPG Asia VII SF Pte Ltd.

Currently, TPG Asia VII SF Pte Ltd holds a 21.52 percent stake, Matrix Partners India Investment Holdings II LLC has a 12.5 percent stake, Norwest Venture Partners X Mauritius has 10.2 percent, and SCI Investments V has an 8.81 percent stake in the firm.

ICICI Securities, Edelweiss Financial Services Ltd, Kotak Mahindra Capital Co Ltd and Nomura Financial Advisory and Securities India Pvt Ltd are the lead managers to the issue.

Founded in 1984, the NBFC provides secured business loans to micro-entrepreneurs and self-employed individuals. The lender has an extensive network of 311 branches, as of June 30, 2022, spread across approximately 150 districts, eight states and one union territory, with Tamil Nadu, Andhra Pradesh, Telangana and Karnataka being its key states.

For the June quarter, the lender reported revenue from operations of Rs 337.97 crore against Rs 300.52 crore a year ago. Net profit for the quarter stood at Rs 139.43 crore versus Rs 101.57 crore a year ago. Gross term loans stood at Rs 5296.54 crore from Rs 4577.51 crore last year. Disbursements were at Rs 568.43 crore versus Rs 333.16 crore.
Total borrowings were at Rs 2520.32 crore from Rs 3121.22 crore.

Gross non-performing assets for the fiscal year 2022 stood at 1.1 percent from 1 percent a year ago. Net NPA fell to 0.7 percent from 0.8 percent last year.