Five Star Business Finance block deal: Equity worth Rs 2,034.60 cr sold as Peak XV, other PE investors likely offload 11.2% stake

As much as 11.20 percent stake of Five Star Business Finance was sold through block deals worth Rs 2,034.60 crore on September 26 with Peak XV, other PE investors being the likely sellers in the transaction. Around 3.30 crore shares of Five Star Business Finance changed hands at a floor price of Rs 809 apiece, implying a marginal discount to the previous closing price.

Shares of the non-banking financial company witnessed a knee-jerk reaction to the block deals and fell marginally at open. At 09.20 am, the NBFC's shares were trading 0.6 percent lower at Rs 803 on the NSE.

While Moneycontrol could not immediately ascertain the parties involved in the transaction, CNBC-TV18 reported on September 25 that Peak XV Partners and other private equity investors were looking to sell up to 20 percent stake in Five Star Business Finance through block deals worth around $500 million.

As of the end of the June quarter, Peak XV Partners held a 6.25 percent stake in the NBFC, according to exchange data.