Five Star Business Finance's IPO garnered significant interest from Qualified Institutional Buyers, fully subscribing their portion. This strong institutional backing, coupled with overall subscription progress, paints a promising picture for the company's future growth and investor confidence. The IPO closing on November 11, 2022, marks a milestone for the Chennai-based NBFC.
Chennai-based Five Star Business Finance Ltd witnessed encouraging investor confidence as its IPO closed on November 11, 2022, with the Qualified Institutional Buyers (QIB) portion fully subscribed, indicating a robust endorsement from key financial institutions. The ₹1,960.01-crore IPO achieved 32 per cent subscription overall on its second day, signaling growing investor interest.
The IPO, with a price band of ₹450-474 and a market lot of 31 shares, benefited from substantial backing from QIBs, who subscribed 1.01 times their allocated quota. While the Retail Individual Investors (RIIs) and Non-institutional Investors' portions saw moderate interest, the strong QIB subscription underscores the financial community's belief in Five Star Business Finance's potential.
Prior to the IPO launch, Five Star Business Finance successfully raised ₹588 crore from anchor investors, including SmallCap World Fund, Fidelity Investments, Capital Research, and others, further validating the company's strong market position and growth prospects. This allocation of 1.24 crore equity shares to anchor investors at ₹474 apiece demonstrates the confidence these prominent investors have in the NBFC’s business model and future trajectory.
The IPO, entirely an offer for sale, involved shares from SCI Investments V, Matrix Partners India Investment Holdings II LLC, Norwest Venture Partners X- Mauritius, and TPG Asia VII SF Pte Ltd. With strong institutional interest and a successful close, Five Star Business Finance is well-positioned to continue its growth trajectory and deliver value to its stakeholders.
