NEWS

Five Star Business Finance Ltd. IPO : Financials and Company Info.

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.