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Five-Star Business Finance slides on debut

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Capital Market
Last Updated : Nov 21 2022 | 10:50 AM IST

Shares of Five-Star Business Finance were currently trading at Rs 473.55 at 10:17 IST on the BSE, representing a discount of 0.09% as compared to the issue price of Rs 474.

The scrip was listed at a price of Rs 449.95, at a discount of 5.07% as compared to the issue price.

So far, the stock has hit a high of 474 and a low of 448.20. On the BSE, over 85,000 shares of the company were traded in the counter so far.

The initial public offer (IPO) of Five-Star Business Finance was subscribed 70%. The issue opened for bidding on 9 November 2022 and it closed on 11 November 2022. The price band of the IPO was fixed at Rs 450 to 474 per share.

The issue consisted entirely of an offer for sale (OFS) to raise Rs 1,960 crore. The promoter and promoter group shareholding declined to 33.7% post IPO from 40.1% pre-IPO.

The objects of the offer were to receive the benefits of listing the equity shares on the stock exchanges and and enhancement of the company brand name amongst existing and potential customers and creation of a public market for equity shares in India.

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Five-Star Business Finance is a "Systemically Important Non-Deposit taking Non-Banking Financial Company (NBFC-ND-SI)", providing secured business loans to micro-entrepreneurs and self-employed individuals largely excluded by traditional financing institutions.

The company reported a net profit of Rs 139.43 crore and total income of Rs 339.06 crore in the quarter ended on 30 June 2022.

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First Published: Nov 21 2022 | 10:20 AM IST

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