TPG Asia, Peak XV Partners to offload Five Star Business Finance shares in Rs 4,300-crore block deal today

Established in 1984, Five Star Business Finance provides secured business loans to micro-entrepreneurs and self-employed individuals -- borrower segments often excluded by traditional financing institutions.

Five Star Business Finance, a Chennai-based NBFC, is set to witness a block deal worth Rs 4,300 crore (approximately $518 million) during the trading session on September 26.

According to people familiar with the development, the selling stakeholders include prominent global funds such as TPG Asia, Norwest Venture Partners, and Peak XV Partners (formerly Sequoia Capital).

"TPG Asia, Norwest Venture Partners, and Peak XV Partners plan to offload around 20 percent of their stake in the company at a floor price of Rs 768 per share," said the source speaking on condition of anonymity.

Ahead of the block deal, shares of Five Star Business Finance, which has a market capitalisation of nearly Rs 23,700 crore, closed 5 percent higher at Rs 812.2 during Wednesday’s trading session.

As of June quarter, Peak XV Partners held a 6.25 percent stake in the non-banking financial company, according to exchange data.

In December last year, TPG Asia VII SF Pte, Matrix Partners India Investment Holdings II LLC, and Peak XV Partners Investments V also sold shares worth Rs 1,656 crore through open market transactions.

Similarly, in September 2023, Norwest Venture Partners X Mauritius, Matrix Partners India Investment Holdings II LLC, and TPG Asia VII SF Pte offloaded 2.55 crore shares of Five Star Business Finance for Rs 1,863 crore in another open market transaction.

Established in 1984, Five Star Business Finance provides secured business loans to micro-entrepreneurs and self-employed individuals -- borrower segments often excluded by traditional financing institutions.

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