Five Star Business Finance Ltd | Globe Capital
Five Star Business Finance Ltd
Closed
Price Band
Rs 450-474
IPO Issue Period
Nov 09, 2022 to Nov 11, 2022
Issue Size
1,960.01 Cr
Face value
Rs. 1
Fresh issue
NIL
Offer for sale
1,960.01 Cr
Minimum Shares for Retail
31 Shares
Listing on
NSE, BSE
Issue Type
Book Building
Registrar to the Issue
KFin Technologies Limited
Tentative Listing Date
Nov 21, 2022
QIB
Not More than 50% of the offer
NII
Not less than 15% of the offer
Retail
Not less than 35% of the offer

ICICI Securities Limited
Edelweiss Financial Services Ltd
Kotak Mahindra Capital Company Limited
Nomura Financial Advisory And Securities

Incorporated in 1984, Five Star Business Finance Limited is an NBFC-ND-SI (Non-Banking Finance Company) providing secured business loans to micro-entrepreneurs and self-employed individuals. The company has an extensive network of 311 branches, as of June 30, 2022, spread across eight states and one union territory and approximately 150 districts across India, with Tamil Nadu, Andhra Pradesh, Telangana and Karnataka being the key states.

Five Star Business Finance Limited has created a business model based on identifying an appropriate risk framework and the ideal instalment-to-income ratio to make sure that customers have the resources to repay the loan after meeting their regular obligations and other event-based capital requirements.

The company is headquartered in Chennai, Tamil Nadu with a strong presence in south India. As of September 30, 2021, we had a total of 4,306 employees.

The company has provided loans to more than 185,000 customers in total. They had an active loan base of 230,175 and 217,745 as of June 30, 2022, and March 31, 2022, respectively.

With more than 30,000 million in AUM, the company has the fasted AUM growth among the compared peers. As of June 30, 2022, and March 31, 2022, the Total Borrowings were Rs 25,203.19 million and Rs 25,588.31 million, respectively.

For year/ period ended ( in Cr.)

H1FY22 FY21 FY20
Total Revenue 1,254.62 1,049.74 786.72
Profit After Tax 453.55 358.99 261.95
EPS 16.09 14.01 10.32
OPM (%) 73.13% 77.45% 73.25%
PATM (%) 36.11% 34.15% 33.27%

 

  • Fastest Gross Term Loans growth among the compared peers with more than ₹3,000 crore in Gross Term loans, with strong return and growth metrics and a significant potential addressable market.
  • Strong “on-ground” collections infrastructure leading to the ability to maintain a robust asset quality.
  • The Company has ability to successfully expand to new underpenetrated geographies through a calibrated expansion strategy.
  • It has 100% in-house sourcing, comprehensive credit assessment and robust risk management and collections framework, leading to good asset quality.
  • The Company will not receive any proceeds from the Offer and all such proceeds will go to the Selling Shareholders.

Five star Business Finance competes with Shriram City Union Finance Limited, Vistaar Financial Services Private Limited, Aye Finance, Lendingkart Technologies Private Limited, Digikredit Finance Pvt Ltd and AU Small Finance Bank, Aavas Financiers Limited, Home First Finance Company India and Aptus Value Housing Finance India. Investors may subscribe to the Issue.

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