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  3. Five Star Business Finance IPO

Five Star Business Finance IPO

Five Star Business will raise Rs 1960.01 crore in a 100% offer for sale IPO. Five Star Business is an NBFC providing loans to micro-entrepreneurs and self-employed. Click here to Apply for Five Star Business Finance IPO.

Opening Date

November 9, 2022

Closing Date

November 11, 2022

Price Band

₹450 - ₹474

per equity share

Issue Size

₹1960 Cr

Face Value

₹1

per equity share

Market Lot

31 Shares

Opening Date

November 9, 2022

Closing Date

November 11, 2022

Price Band

₹450 - ₹474

per equity share

Issue Size

₹1960 Cr

Face Value

₹1

per equity share

Market Lot

31 Shares

Listing at NSE, BSE

Five-Star Business Finance IPO Important Dates

IPO Open Date November 9, 2022
IPO Close Date November 11, 2022
Allotment Date November 16, 2022
Initiation Of Refunds November 17, 2022
Credit Of Shares To
Demat Account		 November 18, 2022
IPO Listing Date November 21, 2022
UPI Mandate Expiry Date November 11, 2022

View all upcoming IPOs

Five Star Business Finance IPO Latest News and Subscription Status Today [Live]

At 05:46:00 PM.
  • This IPO has been subscribed 0.70x by 05:46 PM. on Day 3
  • It is a public issue of 30,488,966 equity shares.
    • Status of Subscription
    • (QIB) Qualified institutional buyers: 1.77
    • (NII) Non-institutional buyers: 0.61
    • (RII) Retail Individual buyers: 0.11
    • Employees: [.]
    At 03:56:00 PM.
  • This IPO has been subscribed 0.69x by 03:56 PM. on Day 3
  • It is a public issue of 30,488,966 equity shares.
    • Status of Subscription
    • (QIB) Qualified institutional buyers: 1.77
    • (NII) Non-institutional buyers: 0.61
    • (RII) Retail Individual buyers: 0.11
    • Employees: [.]
    At 01:36:00 PM.
  • This IPO has been subscribed 0.52x by 01:36 PM. on Day 3
  • It is a public issue of 30,488,966 equity shares.
    • Status of Subscription
    • (QIB) Qualified institutional buyers: 1.56
    • (NII) Non-institutional buyers: 0.17
    • (RII) Retail Individual buyers: 0.09
    • Employees: [.]
    At 10:53:00 AM.
  • This IPO has been subscribed 0.33x by 10:53 AM. on Day 3
  • It is a public issue of 30,488,966 equity shares.
    • Status of Subscription
    • (QIB) Qualified institutional buyers: 1.01
    • (NII) Non-institutional buyers: 0.03
    • (RII) Retail Individual buyers: 0.07
    • Employees: [.]
    At 05:00:00 PM.
  • This IPO has been subscribed 0.32x by 05:00 PM. on Day 2
  • It is a public issue of 30,488,966 equity shares.
    • Status of Subscription
    • (QIB) Qualified institutional buyers: 1.01
    • (NII) Non-institutional buyers: 0.02
    • (RII) Retail Individual buyers: 0.06
    • Employees: [.]
    At 03:18:00 PM.
  • This IPO has been subscribed 0.08x by 03:18 PM. on Day 2
  • It is a public issue of 30,488,966 equity shares.
    • Status of Subscription
    • (QIB) Qualified institutional buyers: 0.20
    • (NII) Non-institutional buyers: 0.02
    • (RII) Retail Individual buyers: 0.05
    • Employees: [.]
    At 01:32:00 PM.
  • This IPO has been subscribed 0.03x by 01:32 PM. on Day 2
  • It is a public issue of 30,488,966 equity shares.
    • Status of Subscription
    • (QIB) Qualified institutional buyers: 0.20
    • (NII) Non-institutional buyers: 0.01
    • (RII) Retail Individual buyers: 0.05
    • Employees: [.]
    At 11:48:00 AM.
  • This IPO has been subscribed 0.03x by 11:48 AM. on Day 2
  • It is a public issue of 30,488,966 equity shares.
    • Status of Subscription
    • (QIB) Qualified institutional buyers: 0.03
    • (NII) Non-institutional buyers: 0.01
    • (RII) Retail Individual buyers: 0.04
    • Employees: [.]
    At 05:00:00 PM.
  • This IPO has been subscribed 0.02x by 05:00 PM. on Day 1
  • It is a public issue of 30,488,966 equity shares.
    • Status of Subscription
    • (QIB) Qualified institutional buyers: 0.03
    • (NII) Non-institutional buyers: 0.01
    • (RII) Retail Individual buyers: 0.03
    • Employees: [.]
    At 03:22:00 PM.
  • This IPO has been subscribed 0.01x by 03:22 PM. on Day 1
  • It is a public issue of 30,488,966 equity shares.
    • Status of Subscription
    • (QIB) Qualified institutional buyers: 0.00
    • (NII) Non-institutional buyers: 0.00
    • (RII) Retail Individual buyers: 0.02
    • Employees: [.]
    At 02:04:00 PM.
  • This IPO has been subscribed 0.01x by 02:04 PM. on Day 1
  • It is a public issue of 30,488,966 equity shares.
    • Status of Subscription
    • (QIB) Qualified institutional buyers: 0.00
    • (NII) Non-institutional buyers: 0.00
    • (RII) Retail Individual buyers: 0.02
    • Employees: [.]
    At 10:32:00 AM.
  • This IPO has been subscribed 0.00x by 10:29 AM. on Day 1
  • It is a public issue of 30,488,966 equity shares.
    • Status of Subscription
    • (QIB) Qualified institutional buyers: 0.00
    • (NII) Non-institutional buyers: 0.00
    • (RII) Retail Individual buyers: 0.00
    • Employees: [.]

    About Five-Star Business Finance Ltd.

    They are an NBFC-ND-SI providing micro-lending solutions to small-entrepreneurs and self-employed individuals excluded by traditional lending institutions. They recorded the highest growth in AUM between 2017-2021 in the sub-set of large peers with AUM over Rs 30,000 million. Their AUM grew at 65% CAGR during the period.

    Five-Star Business Finance primarily caters to customers based in urban, semi-urban and rural areas where CRISIL expects the fastest growth in bank credit activities.

    With the IPO, the company is on the verge of achieving another level of growth.

    Five-Star Business Finance Ltd. IPO Objectives

    • Since the IPO is an offer for sale, the company will not receive any proceeds from selling equities.

    Why should you invest in the Five-Star Business Finance Ltd. IPO?

    Here are our top reasons:

    • They provide secured loans to their customers and are among the best three NBFCs in their segment by Gross Non-Performing assets.
    • Five-Star Business recorded the highest return on AUM in the subset of large peers in 2019, 2020, and 2021.
    • They had an active loan base of Rs 192,270 as of September 30, 2021, and had catered to more than 185,000 customers.

    Financial Highlights

    Particulars For the year/period ended (₹ in million)
      FY21 FY20 FY19
    Revenue From Operation 10,497.42 7,867.15 4,089.08
    EBITDA 8,130.16 5,763.04 3,026.92
    EBITDA Margin (%) 77.45 73.25 74.02
    Profit After Tax 3,589.94 2,619.51 1,564.14
    EPS NA NA NA
    ROE 24.81 17.85 25.72

    How to apply for Five-Star Business Finance Limited IPO?

    Retail investors need to apply for the IPO using UPI.

    UPI

    • Link your bank account to a UPI ID.
    • Register your UPI id with your Demat account.
    • Subscribe for Five-Star Business Finance Ltd. IPO and approve the payment on your UPI ID.

    Demat Account

    • If you are an existing Angel One user, Pre-Apply Now!
    • If you’re a new investor, open an Angel One Demat account for free and begin your investment journey.

    Five-Star Business Finance Ltd. IPO Noteworthy Highlights:

    • Their AUM has grown to ₹46,392.91 million as of September 30, 2021, from 4,935.88 million in March 2017, registering a growth of 65% CAGR.
    • During the first six months ending September 30, 2021, they earned a profit of Rs 2,175.47 million.
    • Five-Star Business Finance Ltd. had a net worth of Rs 34,533.12 million for the same period.

    The Brand’s Pros & Cons:

    Pros Cons
    They have developed a business model predicated on arriving at an appropriate risk framework with the optimal instalment-to-income ratio. The company caters to the low-income group, and an outbreak of a pandemic or a contagious disease would impact the company's performance.
    They provide loans with an average ticket size of Rs0.1 million to Rs1.0 million in principal amount. The business is highly capital intensive. They need a continuous flow of lending funds to expand their business.
    The company has a strong presence in south India, with 268 branches as of September 30, 2021. An increase in non-payment and defaults will affect their business, operation and financial condition.

    Competitive Peers

    The company continues to face challenges from its listed peers.

    Company Name Total Income P/E EPS in Rs (Diluted)
    Aavas Financiers 11,053.351 76.49 36.54
    Aptus Value 6,552.42 62.59 5.55
    AU Small Finance Bank 63,658.84 32.32 37.86
    Five-Star Business Finance Limited 10,512.55 NA 13.61

    Five-Star Business Finance Ltd. IPO FAQs

    What is Five-Star Business Finance Ltd. IPO?

    Five Star Business will raise Rs 1960.01 crore in an offer for sale IPO.

    When will Five-Star Business Finance Ltd. IPO allotment be available?

    The IPO shares will get allotted to the investors' account on November 16, 2022.

    What will be Five-Star Business Finance Ltd. IPO lot size?

    One lot of Five-Star Business Finance Ltd. contains 31 shares.

    When will Five-Star Business Finance Ltd. IPO open for subscription?

    The IPO subscription window will open on November 9, 2022 and close on November 11, 2022.

    What minimum lot size can retail investors subscribe to?

    The minimum investment size is one lot for retail investors.

    When will Five-Star Business Finance Ltd. list on exchanges?

    The Five-Star Business Finance Ltd. IPO shares listing date is November 21, 2022.

    How to check the allotment status of Five-Star Business Finance Ltd. IPO?

    Angel One customers need to log in to their accounts to check Five-Star Business Finance Ltd. IPO allotment status.
    When checking the allotment status, keep your application, DP ID, and PAN number ready.

    What would be the listing gains on Five-Star Business Finance Ltd. IPO?

    Listing gain is the difference between the IPO's opening and offer prices.
    The listing gain results from changing investors' interests, global parameters, and short vs long-term outlooks.

    I have finished the application process for Five-Star Business Finance Ltd. IPO, but the funds are not yet debited. What is the reason?

    The bank initially blocks the amount you bid for an IPO. It will debit the amount when the shares get allotted or unblock it after the UPI mandate expiry date.

    How to approve the UPI mandate request for the Five-Star Business Finance Ltd. IPO?

    Login to your UPI handle and approve the payment mandate to complete the IPO application process.

    Can I submit more than one application for the public issue of Five-Star Business Finance Ltd. using one PAN?

    You can submit only one application using one PAN card.

    What is the minimum order quantity for Five-Star Business Finance Ltd. IPO?

    The minimum size of the application will be one lot containing 31 equity shares.

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