Choice Equity Broking IPO report on Five Star Business Finance
Five-Star Business Finance Ltd. (FBFL) is an NBFC-ND-SI providing secured business loans to micro-entrepreneurs and self-employed individuals. As of Jun’22’, AUM stood at Rs5,297 cr which grew at a CAGR of ~48% from FY18. Total issue size stood at Rs1,960 cr which is purely offer for sale.
Valuation and Outlook
Considering the business profile of the company, intense competition and mounting risk around micro finance sector, we assign ‘Subscribe with Caution’ rating to the issue.
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