Small business lender Five Star Business Finance Ltd. launched its initial public offering on Wednesday to raise up to Rs 1,960 crore.
The IPO was 0.02 times or 2% was subscribed on day 1. The bidding was led by retail investors
The issue is a complete offer for sale, with a handful of the company's early shareholders looking to sell their holdings.
The Chennai-headquartered lender deals in secured business loans to micro-entrepreneurs and self-employed individuals, each of whom are largely excluded by traditional financing institutions. As of June 30, loans to small business owners and self-employed borrowers accounted for 70.15% of gross term loans.
Borrowers earning more than Rs 25,000 per month accounted for just 0.58% of the total loans at the end of the first quarter, according to data available in the red herring prospectus.
IPO Details
IPO open: Nov. 9.
IPO close: Nov. 11.
Price band: Rs 450-474 per share.
Fresh Issue: Not applicable.
Offer for sale: Rs 1,960 crore.
Selling shareholders: SCI Investments (Rs 166 crore), Matrix Partners (Rs 840 crore), Norwest Ventures (Rs 361.4 crore), TPG Asia (Rs 700 crore).
Book running lead managers: ICICI Securities, Edelweiss Financial, Kotak Mahindra Capital, Nomura Financial Advisory.
Subscription Status: Day 2
The IPO was subscribed 0.32 times, or 32%, as of 5 p.m. on Nov. 10.
Institutional investors: 1.01 times
Non-institutional investors: 0.02 times
Retail investors: 0.06 times
Top Research Reports On Five Star Business Finance
Watch BQ Prime's IPO Adda With Five Star Business Finance
RECOMMENDED FOR YOU
Blue Star Q4 Results: Revenue Rises 26.8%, In Line With Estimates
May 02, 2024
America Prepares To Accommodate Higher Number Of Student Applications From India This Year
Apr 27, 2024
From Alia Bhatt To Sakshi Malik, Meet The Indians On TIME's '100 Most Influential People Of 2024' List
Apr 18, 2024
Retail Asset Securitisation - All Time High At Rs 2.05 Lakh Crore: CareEdge
Apr 13, 2024
POPULAR