Five Star Business Finance Ltd. initiated its business operation in 1984. The company has been into the business of lending money to small entrepreneurs and self employed individuals. Its networking is spread across 8 states, 1 union territory and 126 districts. The company has a network of approximately 268 branches by the end of 2021. Its major business activities are carried out in South India. Five Star Business Finance Ltd. is headquartered in Chennai, Tamil Nadu. The company employs more than 4300 people. It has given loans to more than 185000 customers and has active loans for more than 176400 customers.
IPO DETAILS
Five Star Business Finance Ltd. IPO is set to launch on Oct., 2022. The subscription timeline extends till Oct., 2022. The size for the IPO is 2751.95 Crore Rs.. Shares issued through Offer For Sale are worth 2751.95 Crore Rs. No shares are issued through Fresh Issue mode. The lot size is shares and the price range is Rs. – Rs./ share. The company is going to get listed at both the exchanges NSE and BSE. The face value per share is Re. 1 and this is a book built issue. The registrar for the company is KFin Technologies Limited.
TABULAR REPRESENTATION OF IPO DETAILS
| IPO OPENING DATE | Oct., 2022 |
| CLOSING DATE FOR IPO | Oct., 2022 |
| ISSUE TYPE | Book Built Issue |
| Face Value per share | 1 Re. per share |
| IPO price band | 75 Rs. – 80 Rs. |
| LOT SIZE | 185 shares |
| MINIMUM ORDER QUANTITY | 185 shares |
| ISSUE SIZE | 309.38 Crore Rs. |
| OFFER FOR SALE | 309.38 Crore Rs. |
| FRESH ISSUE | No shares |
| LISTING AT | NSE, BSE |
| LISTING DATE | Oct., 2022 |
IMPORTANT DATES
| IPO OPENING DATE | Oct., 2022 |
| CLOSING DATE FOR IPO | Oct., 2022 |
| IPO ALLOTMENT DATE | Oct., 2022 |
| REFUNDS | Oct., 2022 |
| DEMAT A/C CREDITED ON | Oct., 2022 |
| IPO LISTING DATE | Oct., 2022 |
Five Star Business Finance Ltd. IPO begins for subscription from Oct., 2022. The IPO subscription would continue till Oct., 2022. The allotment status for the shareholders who applied would come on Oct., 2022. The refunds for the ones who did not get allotment would be initiated on Oct., 2022. The DEMAT accounts of shareholders would be credited on Oct., 2022. The listing of the company would be accompanied on Oct., 2022.
Lead Managers
The lead managers are :
- Nomura Financial Advisory and Securities Private Limited
- Edelweiss Financial Services Limited
- ICICI Securities Limited
- Kotak Mahindra Capital Company Limited
The minimum lot size for the company is decided at shares. This holding accounts to Rs.. The maximum lot size is decided at shares. This amounts to Rs.. Hence the company’s final holdings would be set as :
| Shares | Amount | |
| Minimum | shares | Rs. |
| Maximum | shares | Rs. |
OBJECTIVES FOR THE IPO
- For General corporate purposes.
- To meet the future capital requirements.
COMPANY FINANCIALS
| Particularly (in Crore Rs.) | 2020-21 | 2019-20 | 2018-19 |
| ASSETS | 5794 | 4353 | 2361 |
| Revenue | 1051 | 787 | 409 |
| PAT | 359 | 262 | 156 |
The financials of the company sound good. The reason being the asset base and the profitability. The assets of the company are constantly increasing though not in a uniform manner. The assets for 2019 were 2361 Crore Rs whereas the same was 4353 Crore Rs for 2020. This means an increase of almost 2000 Crore Rs. However in 2021 the assets increased by 1400 Crore Rs which is less than previous rise.
On the other hand the revenue of the company is also increasing every year. The revenue for 2019 was 309 Crore Rs and it increased to 787 Crore Rs in 2020. The same was 1051 Crore Rs in 2021. The rapid rise in revenue is displayed in the profitability of the company. The profits have gone up from 156 Crore Rs in 2019 to 359 Crore Rs in 2021.
PROS
- The company has a network of more than 260 branches.
- Five Star Business Finance Ltd.’s major business is carried out in South India.
- Its business is spread in 8 states, 1 union territory and 126 districts.
- Five Star Business Finance Ltd. employs more than 4300 people and has an active loan base of more than 176400 customers. It has an experience of more than 37 years.
CONS
- The company works in a highly competitive segment.
Five Star Business Finance Ltd. IPO APPLICATION PROCESS WITH ZERODHA
It is very easy to apply for an IPO now if you have a DEMAT account with Zerodha. Follow the steps below for the same :
- Logging into Zerodha console through its website or KITE platform.
- Clicking the IPO link present in the Portfolio section.
- Click the Five Star Business Finance Ltd. IPO button and press the BID button.
- Entering the details asked for like UPI ID, Quantity and price.
- Submit the application form for the IPO.
- Visiting the application of UPI for approving the transaction.
Now, applying for an IPO online is possible with most of the Discount and online brokers.
