Five Star Business Finance ...

Five Star Business Finance debuts on exchanges; closes above 3% premium to its issue price

Mumbai, November 21, 2022: Five Star Business Finance Limited, which provides secured business loans to micro-entrepreneurs and self-employed individuals, each of whom are largely excluded by traditional financing institutions (“The Company”), makes a good debut on the exchanges to close 3% premium to its issue price.

The scrip which listed at Rs 449.95 per share on BSE and Rs 468.80 per share on NSE, closed at Rs 489.50 per share on BSE at a 3.27% premium, and closed at Rs 489.95 per share on NSE, at a 3.36% premium.

As per NSE, the total quantity traded stood at 139.33 lakh shares, and on BSE, the total Quantity stood at 6.4 lakh shares. Total Turnover (BSE+NSE) on Day 1 stood at Rs 716.70 crore.

Mr. Lakshmipathy Deenadayalan, Chairman and Managing Director – Five Star Business Finance Limited said “It has been a long journey and we have worked very hard to get to this point. We are also happy with the response to our listing and we are confident that we will be able to deliver the numbers that we have promised to reiterate the trust and faith placed on us by our investors.”

The Market Capitalization of the Company at closing price stood at Rs. 14,262.37 Crore as per BSE and Rs. 14,275.48 Crore as per NSE.

The issue is an Offer for Sale with a final size of ₹ 1,588 crore by the company's institutional promoters and institutional investors.

Five Star Business Finance Limited (FSBFL), has a strong presence in south India, and all loans are secured by the borrowers’ property, predominantly being self-occupied residential property (SORP), according to the CRISIL Report, among its peers. FSBFL was set up by V.K Ranganathan and commenced operations in 1984, with a focus on consumer loans and vehicle finance.

Asset Under Management stood at Rs. 5,300 crore as of June 30, 2022, compared to Rs. 4400 crores as of March 31, 2021. As of June 30, 2022, Tamil Nadu, Karnataka, Andhra Pradesh and Telangana accounted for 85% of the overall portfolio. Five Star Business has the second highest Capital Adequacy Ratio of 75.2% after Aptus Value Housing (85.6%) among the compared peers as of March 2022.

As of June 30, 2022, it has a network of 311 branches in 150 districts, 8 states and 1 union territory. With a work force of 6,077 employees, live accounts grew from 33,157 in fiscal 2018 to 230,175 as of June 30, 2022.

ICICI Securities Limited, Edelweiss Financial Services Limited, Kotak Mahindra Capital Company Limited, and Nomura Financial Advisory and Securities (India) Private Limited are the book running lead managers to the issue.