Five-Star Business Finance Unlisted Shares
Five-Star Business Finance Ltd.
INE128S01021
Listing Status: Now Listed
Listing date- 21 Nov 2022 | Lock in release- 18 May 2023
About Five-Star Business Finance Unlisted Shares
Overview of Five-Star Business Finance Unlisted Shares
Five Star Business Finance provides Small business loans to meet borrower requirements for commencing new businesses, expansion of their existing businesses and settling any unorganized dues they have taken to further their businesses.
The loans are given based on Five Star Business Finance management’s evaluation of the borrower's household cashflows coupled with the security of the borrower’s house collateral.
The typical loan ticket of Five Star Business Finance ranges between Rs 1 lakh to Rs 10 lakhs for a tenure between 24 and 84 months. The repayments are to be made on a monthly equated basis.
Five Star Business Finance’s Geographical Presence
Five Star Business Finance has an extensive network of 268 branches as of September 30, 2021, spread across 8 states. Tamil Nadu, Andhra Pradesh, Telangana and Karnataka are our key states. Such key states collectively accounted for approximately 85% of branch networks by number.
Underwriting Model of Five-Star Business Finance
Five Star Business Finance has a two-layered underwriting architecture comprising a field credit team that is “on the ground” and closer to the customer (the “Field Credit Team”); and a file credit team that remotely reviews loan applications and undertakes credit decisioning (the “File Credit Team”). Five Star Business have implemented a comprehensive and robust credit assessment, risk management and collections framework to identify, monitor and manage risks inherent in their line of business.
Financing sourced by Five Star Business Finance
Five Star Business Finance secures financing from diversified sources of capital, including
- term loans;
- proceeds from loans securitized;
- proceeds from the issuance of NCDs;
- issuances of principal protected market-linked debentures;
- proceeds from loans assigned from banks,
- financial institutions,
- mutual funds, and other domestic and international development financial institutions.
Industry Overview
The sector has been plagued with worsening asset quality, which has reached 17.5% in fiscal 2019 as compared to 7.2% in fiscal 2015. This has led to the gradual reduction of the share of industry credit in the overall banking sector. CRISIL Research expects the growth to stay low in this sector on account of the cautious approach taken by lenders.
Insights of Five-Star Business Finance Unlisted Shares
Unaudited Financial results for the quarter ended 30th June, 2022
Particulars (in Crores) | Quarter Ended June2022 | Quarter Ended June 2021 | Year Ended 2022 |
|
Unaudited | Unaudited | Audited |
Net Revenue | 337.97 | 302.46 | 1254.06 |
Operating Cost | |
|
|
Employee Benefit Expense | 71.88 | 51.54 | 236.11 |
Other Expenses | 12.59 | 28.29 | 102.99 |
Total Operating Cost | 84.47 | 79.83 | 339.1 |
Operating Profit (EBITDA) | 253.5 | 222.63 | 914.96 |
Other Income | 1.08 | 0.24 | 2.1 |
Depreciation and Amortization Expense | 3.61 | 2.6 | 12.24 |
Profit Before Interest and Taxes | 250.97 | 220.27 | 904.82 |
Finance Costs | 64.79 | 86.41 | 300.6 |
Profit Before Tax and Exceptional Items Before Tax | 186.18 | 133.86 | 604.22 |
Exceptional Items Before Tax | 0 | 0 | 0 |
Profit Before Tax | 186.18 | 133.86 | 604.22 |
Income Tax | 46.72 | 34.12 | 150.67 |
Profit for the Period | 139.46 | 99.74 | 453.55 |
Earning per share(EPS) | 4.79 | 3.73 | 16.09 |
Paid up Equity Capital | 29.13 | 27.11 | 29.13 |
Reserves(excluding Revaluation Reserve) | 3827.84 | 2916.33 | 3681.22 |
Securities Premium | 2314.36 | 1907.05 | 2313.61 |
Net Worth | 3856.97 | 2943.44 | 3710.35 |
Oustanding Debt | 2520.31 | 3121.21 | 2558.83 |
Debt - Equity Ratio | 0.65 | 1.06 | 0.69 |
Despite the pandemic, the Five Star Business Finance achieved the following milestones during the financial year ended March 31, 2021 - The borrower base crossed 1,75,000 during the year. Gross NPA of 1.02%, which is a good asset quality metric across the financial services industry, is lower than the 1.37% that the Five Star Business Finance had in March 2020. As at March 31, 2021, the total assets under management of Five Star Business Finance increased to Rs 4639.2 Cr in FY22 from Rs 4445.3 Cr in FY21, registering a growth of 4.36%. Profit before tax of Five Star Business Finance was at Rs 476.44 Cr in FY22 up by 36.40% over FY21 at Rs 349.30 crores. At Rs 358.99 Cr, Profit After Tax of Five Star Business Finance was higher by 37.05% over the previous year’s Rs 261.95 crores. The Five Star Business Finance was valued at 1.4 billion dollars, making it a coveted ‘Unicorn”. with 2 new investors viz. KKR and TVS Capital, have chosen to invest in Five Star Business Finance.
Fundraise - Five Star Business Finance
Five Star Business Finance has raised over INR 1900 Cr (US$260mn) in equity and is backed by marquee private equities including TPG, Matrix, Norwest, Sequoia, KKR, and TVS Capital. In March 2021, Five Star Business Finance had raised INR 1,700 crore from new and existing investors at a valuation of INR 10,300 crore.
List of all fundraise done by Five Star Business Finance
IPO Updates of Five Star Business Finance
Nov 21: The Chennai-headquartered NBFC, Five Star Business Finance had filed its draft red herring prospectus (DRHP) in November 2021.
Jan, 22: Five Star Business Finance, has received approval from markets regulator SEBI to raise Rs 2,752 crore through an initial public offering (IPO).
The IPO is entirely an offer for sale. The company will not receive any proceeds from the offer.
OFS in IPO by existing investors of Five Star Business Finance
TPG Asia | INR 1350 Cr |
Matrix Partners | INR 579 Cr |
Norwest Venture | INR 385 Cr |
Sequoia Capital India | INR 257 Cr |
Promoters (Deenadayalan Rangasamy and Varalakshmi) | INR 181 Cr |
Financial Charts of Five-Star Business Finance Unlisted Shares
Balance Sheet of Five-Star Business Finance Unlisted Shares
Profit and Loss of Five-Star Business Finance Unlisted Shares
Ancillary of Five-Star Business Finance Unlisted Shares
Ratio Analysis
Peers
Industry Benchmarking
Segment Revenue
Subsidaries
Security Allotment
Corporate Governance
Team Management Details
FAQs of Five-Star Business Finance Unlisted Shares
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How to buy Five-Star Business Finance Ltd.?
Below are three ways through which you can purchase Five-Star Business Finance Ltd.:
- We at Altius Investech have many actively traded scripts and are market makers of unlisted shares. To check out all the unlisted shares traded. (Click on link). To submit a request to buy Five-Star Business Finance Ltd., please click on the trade button at the top of this page
- Additionally, you can download our app from your play store or app store, register on our application, and engage in active trading there.
Download the Altius App here https://onelink.to/hf4m72 - You can also reach out to us at : +91 8240614850 / +91 8240861716
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How to sell Five-Star Business Finance Ltd.?
Below are three ways through which you can sell Five-Star Business Finance Ltd.:
- We at Altius Investech have many actively traded scripts and are market makers of unlisted shares. To check out all the unlisted shares traded. (Click on link). To submit a request to sell Five-Star Business Finance Ltd., please click on the trade button at the top of this page
- Additionally, you can download our app from your play store or app store, register on our application, and engage in active trading there.
Download the Altius App here https://onelink.to/hf4m72 - You can also reach out to us at : +91 8240614850 / +91 8240861716
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What is the price of Five-Star Business Finance Ltd.?
We provide a two way quote on all the shares we deal in. Your buy price for Five-Star Business Finance Ltd. is ₹485 and your sell price for Five-Star Business Finance Ltd. is ₹450. The price is based on our estimates and market conditions.
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What is the lock-in period of Five-Star Business Finance Ltd.?
The lock-in period for Five-Star Business Finance Ltd. varies depending on the category of investors:
- For retail Investors, HNIs, or Body Corporates, the lock-in period is 6 months from the date of the listing of Five-Star Business Finance Ltd.
- For Venture Capital Funds or Foreign Venture Capital Investors, there is a lock-in period of 6 months from the date of acquisition of Five-Star Business Finance Ltd.
- For AIF-II (Alternative Investment Funds - Category II), there is no lock-in period
August 2021 saw the introduction of this regulation by SEBI. The purpose of the regulation change, which lowered the lock-in period from a year to six months, was to incentivize additional investments in firms getting ready for initial public offerings, or IPOs. Since its introduction, a number of Portfolio Management Services (PMS) have advised their clients to purchase Pre-IPO shares in order to take advantage of the advantages associated with early-stage investments. This reduction in the lock-in period is considered as a significant step forward.
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How is the Five-Star Business Finance Ltd. price calculated?
Fundamental & Comparative valuation models and the forces of demand and supply in the market for unlisted shares dictate the price. These prices are based on our estimates and transaction history of Five-Star Business Finance Ltd.. The price is also determined from the most recent funding round for Five-Star Business Finance Ltd.. This provides us with a benchmark valuation, offering a clear indication of the company's current market value as perceived by investors and industry experts.
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What are the lot sizes of Five-Star Business Finance Ltd.?
We can generally arrange lot sizes starting with an investment of INR 20,000. To confirm the lot sizes of Five-Star Business Finance Ltd. with us kindly click here.
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What are the financials of Five-Star Business Finance Ltd.?
The financials of Five-Star Business Finance Ltd. which includes the P/L of Five-Star Business Finance Ltd. and the Balance Sheet of Five-Star Business Finance Ltd. is in the financials section (Click on link).
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Where can I find the annual report of Five-Star Business Finance Ltd.?
The annual report of Five-Star Business Finance Ltd. is available in the annual report section (Click on link).
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Is buying Five-Star Business Finance Ltd. legal in India?
Yes, buying and selling unlisted shares in India is indeed 100% legal. This activity is regulated and governed under the guidelines provided by the Securities and Exchange Board of India (SEBI). Investors and traders must adhere to these regulations and guidelines to ensure compliance with legal and financial standards. It's important for participants in the unlisted share market to be aware of and understand these regulations to engage in transactions legally and securely.
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Short-term Capital Gain taxes to be paid on Five-Star Business Finance Ltd.?
When you sell unlisted shares within a period of two years from the date of acquisition, any profit earned from the sale is classified as Short-term Capital Gain (STCG). This gain is then added to your total income for that financial year. The tax on this short-term capital gain is calculated based on your applicable individual income tax slab rates. Therefore, the rate at which you will pay tax on the STCG from unlisted shares depends on your total income, including this gain, and the tax slab it falls under as per the prevailing income tax laws in India. It's important for investors to consider these tax implications when engaging in transactions involving unlisted shares.
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Long-term Capital Gain taxes to be paid on Five-Star Business Finance Ltd. and how are They Taxed?
Long-term Capital Gains (LTCG) on unlisted shares in India refer to the profits earned from the sale of unlisted shares that have been held for more than two years. The key aspects of LTCG on unlisted shares include:
- Tax Rate: LTCG on unlisted shares is taxed at a rate of 20%.
- Indexation Benefit: This is a significant advantage for investors. Indexation allows for adjusting the purchase price of the shares for inflation, which can reduce the taxable gain.
- Importance for Investors: Understanding LTCG is crucial, especially for High Net-worth Individuals (HNIs) and retail investors, as it impacts their investment strategy and tax planning. Knowing these details helps in making informed investment decisions.
- Calculation: LTCG is calculated by subtracting the indexed cost of acquisition (the purchase price adjusted for inflation) from the sale price of the shares. The profit thus calculated is subject to a 20% tax.
- Applicability: LTCG tax is applicable to profits from the sale of unlisted shares held for more than two years.
- Relevance: This tax is particularly relevant to investors in the unlisted share market, including those considering selling their holdings after a period of more than two years.
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Applicability of Taxes on Five-Star Business Finance Ltd. once it is listed?
When shares initially bought in the unlisted market become listed, the taxation rules change significantly if these shares are sold through a stock exchange. Here's what investors need to know:
Transition to Listed Market Tax Rates: Once unlisted shares are listed on the stock exchange and subsequently sold, the tax rates applicable to listed securities come into effect. This shift means that the favourable tax treatments for listed shares, as per the prevailing tax laws, will apply.
Taxation Based on Holding Period: The crucial factor in determining the type of capital gains tax (Long-term or Short-term) is the holding period of the shares. Importantly, this period is calculated from the original purchase date when the shares were unlisted.
Long-term vs. Short-term Capital Gains: If the shares are sold after being held for more than one year from the date of purchase (including the period when they were unlisted), they are subject to Long-term Capital Gains (LTCG) tax.
Conversely, if sold within one-year, Short-term Capital Gains (STCG) tax rates apply.
Significance for Investors: This information is vital for investors in the unlisted market, as it impacts their tax planning and decision-making process. Understanding these nuances ensures that investors can strategically plan the sale of their shares post-listing to optimize tax implications.
Advice for Investors: It's advisable for investors to keep a record of their purchase dates and monitor the listing dates closely. Additionally, staying updated with the latest tax regulations or consulting with a financial advisor is recommended for accurate tax calculations and compliance. -
How does Altius Investech source Five-Star Business Finance Ltd.?
At Altius Investech, our approach to sourcing Boat Unlisted Share (Imagine Marketing) involves a strategic and direct method. Primarily, we acquire these shares from the below key groups:
Employees of the Company: Employee stock option plans (ESOPs) or other compensation packages frequently include shares for firm employees. For a various reasons, such as including portfolio diversification or financial considerations, some of these employees may eventually choose to sell their shares. We engage with these employees, providing them a platform to sell their shares.
Initial Investors: These are the angel or early-stage investors who provided capital to the business in its early stages. These original investors may look to sell all or part of their ownership position in the company as it develops and flourishes. This might be done for various reasons such as in order to maximise their investment, reallocate resources, or make other calculated financial decisions.
Funding rounds and VC funds: Altius Investech sources the shares from private placement rounds in which private companies seek to obtain capital from the market. Through our platform, venture capital funds can liquidate their shares and we receive the inventory from them when they decide to sell a portion of their ownership through block trades.
By establishing connections with these groups, Altius Investech guarantees our clients a steady and dependable supply of Boat Unlisted Share (Imagine Marketing). This process not only makes it easier for employees and initial investors in liquidating their assets, but it also gives our clients access to shares that aren't often found on the open market. Our platform effectively facilitates a win-win situation for both buyers and sellers. -
How to trust Altius Investech before buying Five-Star Business Finance Ltd. from its platform?
Altius Investech stands at being India's fastest growing and leading marketplace for buying and selling unlisted shares. We believe in enabling access to alternative sources of investments at lower entry barriers to private equity investments.
With more than 25 years of experience, Altius Investech has carved a niche in the financial market by serving more than 8000 clients. The incredible journey is further highlighted by the vast number of transactions that Altius Investech has facilitated transactions that have already exceeded 300 crores.
For investors Altius Investech curates investment opportunities in companies at reasonable valuations which are on the verge of an IPO leading to massive value unlocking. Investments are backed by thorough research and sound investment thesis, with a time bound exit plan.
For ESOP Shareholder and existing Investors, we assist them to liquidate their shares even if they are not publicly traded by creating a platform where we find the right buyers and sellers for the best prices.
Altius Investech have been featured in top media news outlets like Economic Times, Financial Express, Money control. Check out about us on these - leading publications (Click on link) Our journey over these years has not just been about numbers; it's been about building trust and reliability.
We at Altius Investech are dedicated to upholding the greatest levels of ethics and transparency, making sure that your investment experience is not only profitable but also safe and reliable.
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