Five-Star Business Finance IPO
Five-Star Business Finance IPO — date, price band, lot size & details 2022
Five-Star Business Finance listed on 21 Nov 2022 at ₹468.8, 1.1% below the ₹474 issue price.
Five-Star Business Finance is a Chennai-based NBFC that gives secured business loans to micro-entrepreneurs and self-employed people. It had 311 branches on 30 June 2022.
Stock price
Five-Star Business Finance is listed — here is the live share price.
Researched & reviewed by
Abhishek Vohera,
Founder, IPO Guru
Last updated
Figures sourced from the RHP, BSE & NSE
Timetable
Key dates from opening to listing. Today is 10 November.
- Open 09 Nov 2022
- Close 11 Nov 2022
- Allotment 16 Nov 2022
- Refund/credit 17 Nov 2022
- Listing 21 Nov 2022
Issue summary
The terms of the offer, as filed.
| IPO Dates | 9 to 11 Nov, 2022 |
|---|---|
| Price Band | ₹450 – ₹474 |
| Face Value | ₹1 |
| Lot Size | 31 Shares |
| Issue Size | ₹1588.51 Cr |
| Sale Type | OFS only |
| Listing On | BSE, NSE |
| Registrar | KFin Technologies Limited |
| Min Investment | ₹ 14,694 |
Share of the offer set aside for each investor category, as stated in the offer document.
What will it cost me?
Bidding is in multiples of 31 shares at the ₹474 cut-off. Drag to size your application.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 31 | ₹14,694 |
| Retail (max) | 13 | 403 | ₹1,91,022 |
| S-HNI (min) | 14 | 434 | ₹2,05,716 |
| S-HNI (max) | 68 | 2,108 | ₹9,99,192 |
| B-HNI (min) | 69 | 2,139 | ₹10,13,886 |
Strengths & risks
Drawn from the offer document — the case for and against, side by side.
Strengths · 5
- 01Profit after tax rose from Rs 261.95 crore in FY2020 to Rs 453.55 crore in FY2022.
- 02Total income rose from Rs 787.35 crore in FY2020 to Rs 1,256.17 crore in FY2022.
- 03Net worth was Rs 3,856.98 crore on 30 June 2022, well above borrowing of Rs 2,520.32 crore.
- 04As per CRISIL, its Stage 3 loans were only 1.05% of gross term loans on 31 March 2022.
- 05All loans are secured by property, and over 95% are small loans of Rs 0.1 million to Rs 1.0 million.
Risks · 5
- 01The whole Rs 1,588.51 crore issue was offer for sale, so no money went to the company.
- 02The pre-issue P/E was 30.44 at the upper band of Rs 474, based on EPS of Rs 15.57.
- 03Its 311 branches are concentrated in south India, so regional shocks can hit loan quality.
- 04Borrowers are small businesses with irregular income, and recovery through property can be slow across an active loan base of 230,175.
- 05Promoters and the promoter group held only 39.92% before the issue, and two promoter investors sold shares in the offer.
Three years of numbers
All figures in ₹ crore, as reported in the Five-Star Business Finance offer document.
| Metric | 30 Jun 2022 | 31 Mar 2022 | 30 Jun 2021 | 31 Mar 2021 | 31 Mar 2020 |
|---|---|---|---|---|---|
| Assets | 6,471.55 | 6,343.07 | 6,129.10 | 5,793.61 | 4,353.15 |
| Total Income | 339.06 | 1,256.17 | 300.76 | 1,051.26 | 787.35 |
| Profit After Tax | 139.43 | 453.55 | 101.57 | 358.99 | 261.95 |
| NET Worth | 3,856.98 | 3,710.35 | 2,944.41 | 2,318.17 | 1,944.58 |
| Reserves and Surplus | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Borrowing | 2,520.32 | 2,558.83 | 3,121.22 | 3,425.20 | 2,363.69 |
See how this IPO compares — view listing performance of all mainboard IPOs.
Valuation & key ratios
Ratios are for the latest full financial year reported in the Five-Star Business Finance RHP. EPS and P/E are post-issue — the table below carries the pre-issue comparison.
Five-Star Business Finance IPO Valuation
How the issue prices the company before and after the fresh shares are created.
| Valuation Metric | Pre-Issue | Post-Issue |
|---|---|---|
| EPS (₹) | ₹15.57 | ₹19.14 |
| P/E Ratio (x) | 30.44 | 24.76 |
| Market Cap at Offer Price (₹ Cr) | ₹4,244.69 | ₹3,452.97 |
Pre-issue figures use the shareholding reported in the RHP; post-issue figures use the shareholding once the fresh issue has created new shares. The two differ because of that dilution and because post-issue earnings per share are often annualised, so the change can run in either direction. Market capitalisation is calculated at the ₹474 offer price. Compare the post-issue P/E against listed peers before deciding — a premium there is growth you are paying for in advance.
Where the money goes
How the company intends to use the proceeds of the issue.
Information about the usage of proceeds from the Five-Star Business Finance IPO will be updated shortly.
About the company
All of its loans are secured by the borrower's property, mostly self-occupied residential property. Over 95% of its portfolio is in loans of Rs 0.1 million to Rs 1.0 million.
On 30 June 2022 it had 311 branches across eight states and one union territory, with Tamil Nadu, Andhra Pradesh, Telangana and Karnataka as the key states. It had an active loan base of 230,175 on that date. As per CRISIL, its Stage 3 loans were 1.05% of gross term loans on 31 March 2022.
The IPO was Rs 1,588.51 crore and was entirely an offer for sale by investors, including two promoter investors, so the company received none of the money.
Interested in this IPO? Check the live subscription status or browse all upcoming mainboard IPOs.
The bankers & the filings
Who is running the book, and the documents this page is built from.
Lead Manager Track Record
How the book-running lead managers on this issue have priced their past IPOs, measured on listing day.
ICICI Securities
76 issues handledBest listing: Latent View Analytics (+160.0%). Weakest: Shriram Properties (-23.7%).
Kotak Mahindra Capital Company Limited
61 issues handledBest listing: G R Infraprojects (+105.0%). Weakest: Rategain Travel Technologies (-15.3%).
Nomura Financial Advisory & Securities (India) Pvt. Ltd
13 issues handledBest listing: Nazara Technologies (+80.7%). Weakest: Shriram Properties (-23.7%).
Edelweiss Financial Services Ltd
12 issues handledBest listing: Indigo Paints (+75.0%). Weakest: Lodha Developers (-10.3%).
Listing gain compares the listing-day opening price with the issue price, using the IPOs on IPO Guru that this lead manager has taken to market. A strong record reflects how the banker has priced past issues — it is not a forecast for this one. See every issue they have handled on the lead managers page.
Company contact
Frequently asked
What is the GMP of Five-Star Business Finance?
The current Grey Market Premium is ₹1.77.
What is the Five-Star Business Finance IPO price band?
₹450 to ₹474, on a face value of ₹1.
When is the allotment?
The basis of allotment is 16 November 2022, with listing on 21 November 2022.
How do I check allotment status?
On the IPO Guru allotment page or on the registrar's site — KFin Technologies Limited.
Every number here traces back to a filing.
IPO Guru tracks GMP, subscription and allotment for every Mainboard and SME issue. Every number on this page is sourced from the RHP, BSE & NSE.
Not investment advice. Grey market premium is an unofficial, unregulated indicator and is not a forecast.
