Five Star Business Finance, a non-bank lender, announced on Friday that it had set a price range for its Rs 1,960 million initial public offerings (IPO) of Rs 450-474 per equity share. The non-banking financial company (NBFC) with its headquarters in Chennai will hold a three-day public subscription period for its initial share sale from November 9 to 11. According to the company’s statement, bidding for anchor investors will begin on November 7. Existing shareholders and promoter group entities are the sole participants in the IPO, which is entirely an offer for sale (OFS) of shares for Rs 1,960 crore. Investors like TPG, Matrix Partners, Norwest Ventures, Sequoia, and KKR back the NBFC.
SCI Investments V will sell shares for Rs 166.74 million through the OFS; Matrix Partners India Investment Holdings II LLC will sell shares for Rs 719.41 million; Matrix Partners India Investments II Extension LLC will sell shares for Rs 12.08 million; Norwest Venture Partners X-Mauritius will sell shares for Rs 361.44 million; and TPG Asia VII SF Pte Ltd will sell shares for Rs 700.31 million. At the moment, TPG Asia owns Investors can bid for up to multiples of 31 equity shares at the minimum. The higher end of the price range is expected to bring in Rs 1,104 crore for the business. Qualified institutional investors have been allocated half of the issue size, retail investors have received 35%, and non-institutional investors have received 15%. Investors can bid for at least 40 shares in multiples of those numbers. The microfinance company’s capital base will be strengthened with the net proceeds from the new issue.
The microfinance company with its headquarters in New Delhi makes the claim that it helps underserved women in India gain access to more economic opportunities by providing them with financial services.To provide loans of up to Rs 50,000, the business makes use of the joint liability group (JLG) model, which was developed in Bangladesh by Grameen Bank. Warburg had invested Rs 520 crore in the business in December 2018, and as of December 2019, the company’s outstanding portfolio had grown by Rs 3,350 crore, or 45 percent, in the fiscal year 2018-19. The issue’s merchant bankers are ICICI Securities, CLSA India, JM Financial, and IIFL Securities.
In advance of its initial public offering (IPO), which opens for public subscription on Wednesday, Fusion Micro Finance announced on Tuesday that it had raised slightly more than Rs 331 crore from anchor investors. According to a circular that was posted on the website of the BSE, the business has decided to distribute 89,99,943 equity shares to anchor investors at a price of Rs 368 each, bringing the total amount of the transaction to Rs 331.2 crore. It added that anchor investors include Nomura, BNP Paribas Arbitrage, Aditya Birla Sun Life Mutual Fund, Edelweiss Mutual Fund, Motilal Oswal Mutual Fund, ICICI Prudential Mutual Fund, HDFC Life Insurance Company, Bajaj Allianz Life Insurance Company, and Kotak Mahindra Life Insurance Company. The issue’s book-running lead managers are Edelweiss Financial Services, Kotak Mahindra Capital Company, ICICI Securities, and Nomura Financial Advisory and Securities (India) Private Limited.
Micro-business owners and self-employed individuals, two types of borrowers that are largely overlooked by traditional financial institutions, are eligible for secured business loans from Five Star Business Finance. It has a significant presence in south India, and all loans
are secured by the property of the borrowers, typically residential properties used solely for personal use. The IPO consists of an offer to sell 13,695,466 equity shares from promoters and existing shareholders for a total of Rs 600 crore. Devesh Sachdev, Mini Sachdev, Honey Rose Investment Ltd., Creation Investments Fusion, LLC, Oikocredit Ecumenical Development Co-operative Society U.A., and Global Financial Inclusion Fund are the individuals offering shares in the OFS.
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The issue will open for public subscription on November 2 and close on November 4, with prices ranging from Rs 350 to Rs 368 per share. In 1984, the NBFC began operations with a focus on vehicle finance and consumer loans. In 2005, it changed how it did business and gave small business loans to people in rural, semi-rural, and urban markets that had the potential for growth. 85% of the portfolio was held by Tamil Nadu, Andhra Pradesh, Telangana, and Karnataka as of June 2022. Likewise, it has an organization of 311 branches in 150 regions, 8 states, and 1 Association Domain.
Its live accounts increased from 33,157 in FY18 to 2.3 lakh as of June of this year, with 6,077 employees. The lender’s total income increased by 19.49% from Rs 1,051.25 crore in FY21 to Rs 1,256.16 crore in FY22, and its net profit increased from Rs 358.99 crore to Rs 453.54 crore. As of March 31, 2022, Asset Under Management had grown to Rs 5,100 crore, up from Rs 4,400 crore the previous year. Five-star Business Money rivals Shriram City Association Money, Veritas Monetary and The board Administrations, Affirmative Money, AU Little Money Bank, Aavas Agents, and Home First Money Organization India, among others.
read more : On November 7, the IPO of NBFC Five Star Business Finance will Go Live
