Five Star Business Finance IPO - A South Based Star Rated NBFC: Reliance Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Reliance Securities' IPO Report.Five Star Business Finance Ltd. is one of the fastest growing non-banking financial company with assets under management of Rs 50.7 billion as of FY22 from Rs 44.5 billion as of FY21.The company provides secured business loans to micro entrepreneurs and self-employed individuals. It has headquarter in Chennai, Tamil Nadu with strong presence in south India, with all of its loans are secured by the borrowers’ property, predominantly self-occupied residential property. The company has a large and diversified mix of 53 lenders comprising a range of public banks, private banks, and financial institutions, as of FY22. Five Star Business Finance reported an average return on equity of ~14% over FY20-22. The company leveraged its processes and technology to reduce the turnaround time from login to loan sanction from an average of 20 days in FY18 to 17 days, and 15 days in FY19, and FY20 respectively. There has been an increase in the turnaround time during FY21 and FY22 due to onset of Covid-19 and the related periodic disruptions such as the lockdowns. However, during Q1 FY23, it reduced the turnaround time on the loans disbursed to 18 days. Five Star Business Finance is coming out with an initial public offering of Rs 19.6 billion comprising fully offer for sale of 41.4 million shares..Click on the attachment to read the full IPO report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Five Star Business Finance IPO - A South Based Star Rated NBFC: Reliance Securities

The company is coming out with an IPO of Rs 19.6 billion comprising fully offer for sale of 41.4 million shares.

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