Five Star Business Finance Limited IPO GMP, Review, Price, Allotment

Five Star Business Finance Limited IPO GMP, Review, Price, Allotment

Five Star Business Finance Limited, established in 1984, is a Chennai-based organization that gives little credits and little home loans to independently employed people and little business people, who are rejected by enormous monetary foundations.

The advances given by the organization are all gotten by the borrower’s property. As of September 30, 2021, the organization has a broad organization of 268 branches spread across 8 states and 1 association domain.

Tamil Nadu, Andhra Pradesh, Telangana, and Karnataka represent 95% of the absolute arrangement of the organization. The organization has the biggest Resource Under Administration worth Rs.3,000 crore, when contrasted with its friends.

Five Star Business Finance Limited has an endorsing model to give tied down supporting answers for entrepreneurs and independently employed people and throughout recent many years of activity in this specific item, is among the select organizations to have grown such a model in India. The model is client driven and is supported by guaranteeing rehearses that locate the person, income, and insurance of possible clients.

Five Star Business Finance Limited’s 100 percent in-house obtaining, far reaching credit evaluation and hearty gamble the executives and assortments system permit them to recognize, screen, and oversee takes a chance with innate in their tasks. Catering basically to entrepreneurs and independently employed clients while keeping up with resource quality requires an exceptional range of abilities without conventional pay proof, to such an extent that loaning to these borrowers depends on an evaluation of their pay and incomes through different strategies.

Stengths

  1. Five Star Business Money has seen the quickest AUM development among its friends, with more than Rs.3,000 crore in AUM and has additionally serious areas of strength for seen and returns
  2. One of a handful of the foundations in the country that has fostered a guaranteeing model where the incomes of entrepreneurs and independently employed people are examined to give them credits
  3. The organization can grow to un-infiltrated geological regions through its determined methodology
  4. They have encountered and qualified advertisers and an extremely proficient supervisory group fully backed by marquee financial backers

Risks

  1. A significant measure of capital is expected to maintain the business and the organization gets it from different outer sources and in this manner the entire business completely relies upon the ideal accessibility of these assets
  2. The fundamental, inborn gamble is of the borrowers not taking care of the credits and the gamble is higher for this situation as the client bunch is basically the center and lower-pay gathering and there is a high chance of default among these entrepreneurs and independently employed individuals
  3. Adding forthright over, a huge piece of the borrowers are first time borrowers which further builds the gamble of default
  4. The unpredictability in financing costs could antagonistically influence the Net interest pay

Five Star Business Finance Limited IPO Important Dates

Opening Date9 November 2022
Closing Date11 November 2022
Basis of Allotment16 November 2022
Initiation of refunds17 November 2022
Transfer of shares to demat accounts18 November 2022
Listing Date21 November 2022

Five Star Business Finance Limited IPO Details

Price Band₹450 to ₹474 per share
Lot Size31 Shares
Minimum Amount for 1 lot₹14,694
Total IPO size₹1,960.01 crore
Offer for Sale41,351,266 shares
Listing AtBSE, NSE
Retail Quota35%
QIB Quota50%
NII Quota15%
DRHP Draft ProspectusClick Here
RHP Draft ProspectusClick Here

Objects of the Issue

  • The Company will not receive any proceeds from the Offer and all such proceeds will go to the Selling Shareholders.

Company Financials

Period EndedTotal AssetsTotal RevenueProfit After TaxNet WorthTotal Borrowing
31-Mar-204353.15787.35261.951944.582363.69
31-Mar-215793.611051.26358.992318.173425.2
30-Jun-216129.1300.76101.572944.413121.22
31-Mar-226343.071256.17453.543710.352558.83
30-Jun-226471.55339.06139.433856.982520.32

Revenue, EBITDA and PAT

Particulars (in Rs. Crores)FY21FY21FY20
Revenue1254.11049.7786.7
EBITDA917.1813.0576.3
PAT453.5359.0262.0

Cash flow

Particulars (in Rs. Crores)FY22FY21FY20
Net cash generated from/(used in) operating activities-277.2-157.3-1523.3
Net cash from / (used in) investing activities-383.9102.1-131.9
Net cash flow from / (used in) financing activities7.01032.51725.3
Net increase (decrease) in cash and cash equivalents-654.0977.470.1

IPO Valuation – FY2022

Earning Per Share (EPS):₹14.01 per Equity Share
Price/Earning P/E Ratio:N/A
Return on Net Worth (RoNW):16.85%
Net Asset Value (NAV):₹85.26 per Equity Share

Peer Comparison

Name of the CompanyTotal Revenue (in Rs. crores)Basic EPSNAV Rs. per sharePERoNW %
Five-Star Business Finance Limited1,256.1716.09127.35NA13.86%
Aavas Financiers1,305.6545.1355.5346.0212.66%
Aptus Value840.227.5858.6843.2912.69%
Au Small Finance Bank6,915.4318.03119.3133.1915.04%

Company Promoters

  • Chemikas Speciality LLP
  • Ravi Pendurthi
  • Ranjit Pendurthi

IPO Registrar

KFin Technologies Limited

Phone: 04067162222, 04079611000
Email: einward.ris@kfintech.com
Websitehttps://karisma.kfintech.com/

Company Contact Information

Five Star Business Finance Ltd
New No. 27, Old No. 4,
Taylor’s Road, Kilpauk,
Chennai 600 010
Phone: +91 44 4610 6260
Email: cs@fivestargroup.in
Websitehttps://fivestargroup.in/

Five Star Business Finance Limited IPO GMP

GMP (Grey Market Premium)Subject to SaudaListing Gain

Five Star Business Finance Limited IPO Review

What our experts say about Five Star Business Finance Limited IPO ReviewApply

Five Star Business Finance Limited IPO Subscription Details

Investor CategorySubscription (times)
Qualified Institutions1.77
Non-Institutional Buyers0.61
Retail Investors0.11
Employees
Others
Total0.70

Five Star Business Finance IPO Subscription Details (times)

DateQIBNIIRetailTotal
Day 1
Nov 9, 2022
0.030.010.030.02
Day 2
Nov 10, 2022
1.010.020.060.32
Day 3
Nov 11, 2022
1.770.610.110.70

Five Star Business Finance Limited IPO Allotment Status

Check Five Star Business Finance Limited IPO Allotment StatusClick Here

Five Star Business Finance Limited IPO Listing Performance

IPO Price Band₹450 to ₹474
Open₹449.95
Low₹448.20
High₹539.90
Close₹489.50

FAQ

When will Five Star Business Finance Limited IPO will open?

Five Star Business Finance Limited IPO is set to open on 9 November 2022.

What is Five Star Business Finance Limited IPO Price Band?

Five Star Business Finance Limited IPO Price Band is ₹450 to ₹474 per share.

What is the lot size of Five Star Business Finance Limited IPO?

Lot size of Five Star Business Finance Limited IPO is 31 Shares per lot.

What is Five Star Business Finance Limited offer size?

Five Star Business Finance Limited IPO offer size is ₹1,960.01 crore.

What is the last date to apply for Five Star Business Finance Limited IPO?

Last date to apply Five Star Business Finance Limited IPO is 11 November 2022.

What is the Five Star Business Finance Limited IPO Allotment Date?

Allotment Date for Five Star Business Finance Limited IPO is 16 November 2022.

What is the Five Star Business Finance Limited IPO Listing Date?

Listing Date for Five Star Business Finance Limited IPO is 21 November 2022.

How to Apply Five Star Business Finance Limited IPO through 5 Paisa?

  1. Login to your 5paisa account and select “Five Star Business Finance Limited IPO” in the current IPO section.
  2. Enter the number of lots and price at which you wish to apply for the IPO.
  3. Enter your UPI ID and click on submit.
  4. You will receive a mandate notification to block funds in your UPI app.
  5. Approve the mandate request on your UPI and funds will be blocked

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