Five Star Business Finance IPO GMP: The initial public offering (IPO) of Five Star Business Finance Ltd has hit the primary markets today. The public issue worth ₹1,960 crore will remain open for bidding till 11th November 2022. The NBFC has fixed Five Star Business Finance IPO price band at ₹450 to ₹474 and it 100 per cent offer for sale (OFS) in nature. The book build issue has made its debut in grey market as well. According to market experts, shares of Five Star Business Finance Ltd are available at a premium of ₹12.
As of 3:35 pm on day 1, the issue has been subscribed 0.01 times with retail investors’ category booked 0.02x, as per BSE data.
Here we list out important Five Star Business Finance IPO details in 10 points:
1] Five Star Business Finance IPO GMP: As per the market observers, Five Star Business Finance IPO grey market premium (GMP) today is ₹12, which is ₹2 higher from its Tuesday GMP of ₹10 per equity share.
2] Five Star Business Finance IPO price: The NBFC has fixed price band of the public offer at ₹450 to ₹474 per equity share.
3] Five Star Business Finance IPO subscription date: The issue opens today and it will remain open for bidders till 11th November 2022.
4] Five Star Business Finance IPO size: The NBFC aims to raise ₹1,960.01 crore from its public offer.
5] Five Star Business Finance IPO lot size: A bidder will be able to apply in lots and one lot will comprise 32 Five Star Business Finance shares.
6] Five Star Business Finance IPO allotment date: The tentative date for share allocation is 16th November 2022.
7] Five Star Business Finance IPO registrar: KFin Technologies Limited has been appointed as official registrar of the public issue.
8] Five Star Business Finance IPO listing: The public issue is proposed for listing on both BSE and NSE.
9] Five Star Business Finance IPO listing date: Shares of Five Star Business Finance are likely to list on 21st November 2022.
10] Five Star Business Finance IPO review: On whether one should buy this IPO or not, Abhay Doshi, Founder at UnlistedArena.com said, “Five Star Business Finance is a prominent NBFC based in southern India that enjoys unicorn status with the presence of marquee investors. Five Star provides secured business loans, and 95% of their loan disbursements are for loans between ₹1 and 10 lacs. The company had performed significantly well. NIMS for FY22 were 17.68%, while GNPA and NNPA remained very controlled. On the valuation front, the issue looks attractively priced based on the price at the upper band the asking P/BV is 3.58x (based on June, 22 book value). It is notable to watch that its unlisted shares were traded between Rs. 360 and Rs. 725 in the unlisted market.”
On outlook and valuations of Five Star Business Finance Ltd, Pravesh Gour, Senior Technical Analyst at Swastika Investmart said, “In recent years, NBFCs have had one of the highest shares of disbursements for small business loans among other lenders; one such NBFC is Five Star Business Finance Limited, which provides secured business loans to microentrepreneurs and self-employed individuals. The company has its headquarters in Chennai, Tamil Nadu, with a strong presence in south India. It has the fastest gross term loan growth among the compared peers and a continuous track record of financial growth with increasing revenue and profit. The issue is reasonably priced at a P/B valuation of 3.6 when compared with its peers. However, high competition and rising interest rates are big threats to this.”
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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