Block Deal Worth Rs 2249.8 Crore in Five Star Business Finance

Block Deal Details 

Shares of Five Star Business Finance saw heightened activity in early trading on Thursday as a major block deal worth Rs 2249.8 crore was executed. In the transaction, 2.81 crore shares changed hands at a price of Rs 800.5 per share during the pre-opening trade. However, the identities of the buyers and sellers involved in the deal remain undisclosed.

Highest Volume

Following the block deal, the stock traded almost flat at Rs 806 on the NSE, despite an initial rise to Rs 847.45 during early trading. The stock previously closed at Rs 808, showing little movement as the session progressed.

What set this day apart was the volume of shares traded. Five Star Business Finance recorded its highest-ever single-day trading volume on the NSE since December 2023, with 133.40 lakh shares changing hands. The total traded value amounted to Rs 1,067.23 crore, significantly boosting market activity.

Recent Market Performance

As of the June quarter, Peak XV Partners held a 6.25% stake in the non-banking financial company (NBFC), according to exchange data. The stock has shown a 6% increase in September so far and is up nearly 10% on a year-to-date (YTD) basis, indicating steady investor interest and confidence in the company.

Company Overview: Five Star Business Finance Limited

Five Star Business Finance Limited (FSBFL) is a Chennai-based non-banking financial company (NBFC) that specializes in providing secured loans to micro-entrepreneurs and self-employed individuals, predominantly in semi-urban markets. Initially founded in 1984 with a focus on consumer loans and vehicle finance, the company shifted its strategy in 2005 to concentrate on small business loans.

These loans typically range from Rs 2 lakh to Rs 10 lakh, with an average loan size of Rs 3 to 5 lakh, and are generally secured by self-occupied residential properties. The company’s extensive network consists of 547 branches across 10 states and union territories as of June 30, 2024.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.