INE128S01021
Listing Status: Now Listed

About Five-Star Business Finance Ltd (Listing date- 21 Nov 2022 Lock in release- 18 May 2023)
Overview of Five-Star Business Finance Ltd (Listing date- 21 Nov 2022 Lock in release- 18 May 2023)
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 Ltd (Listing date- 21 Nov 2022 Lock in release- 18 May 2023)
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 |
Balance Sheet of Five-Star Business Finance Ltd (Listing date- 21 Nov 2022 Lock in release- 18 May 2023)
Profit and Loss of Five-Star Business Finance Ltd (Listing date- 21 Nov 2022 Lock in release- 18 May 2023)
Management of Five-Star Business Finance Ltd (Listing date- 21 Nov 2022 Lock in release- 18 May 2023)
DEENADAYALAN LAKSHMIPATHY - Managing Director
Shareholding in the company - 13.65 %
KRANGARAJAN - Chief Executive Officer
Shareholding in the company - 1.01 %
GOPALAKRISHNAN SRIKANTH - Chief Financial Officer
Shareholding in the company - 0.35 %
LANKUPALLI RAVIPRASAD RAGHAVAN - Director
Shareholding in the company - 0.31 %
BALARAM HARIBABU - Director
Shareholding in the company - 0.18 %
SHALINI BASKARAN - Company Secretary
ARJUN SAIGAL - Alternate Director
LING WEI ONG - Director
SANJEEV MEHRA - Director
RAVI SHANKAR VENKATARAMAN GANAPATHY AGRAHARAM - Director
VIKRAM VAIDYANATHAN - Director
THIRULOKCHAND VASAN - Director
RAMANATHAN ANNAMALAI - Director
BHAMA KRISHNAMURTHY - Director
ANAND RAGHAVAN - Director
Ancillary of Five-Star Business Finance Ltd (Listing date- 21 Nov 2022 Lock in release- 18 May 2023)
Ratio Analysis
Peers
Industry Benchmarking
Segment Revenue
Subsidaries
Security Allotment
Corporate Governance
Press of Five-Star Business Finance Ltd (Listing date- 21 Nov 2022 Lock in release- 18 May 2023)
Annual Report of Five-Star Business Finance Ltd (Listing date- 21 Nov 2022 Lock in release- 18 May 2023)
Company Information of Five-Star Business Finance Ltd (Listing date- 21 Nov 2022 Lock in release- 18 May 2023)
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Can I buy unlisted shares of Five-Star Business Finance Ltd?
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Can I sell unlisted shares of Five-Star Business Finance Ltd?
Yes, you can sell Five-Star Business Finance Ltd shares. 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 shares of Five-Star Business Finance Ltd Please click on the trade button at the top of this page
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What is the price of Five-Star Business Finance Ltd unlisted share?
We provide a two way quote on all the shares we deal in. Your buy price for Five-Star Business Finance Ltd unlisted share is ₹0.01 and your sell price for Five-Star Business Finance Ltd unlisted share is ₹0.01. The price is based on our estimates and market conditions.
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How is the price of Five-Star Business Finance Ltd 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 unlisted share.
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What are the lot sizes for Five-Star Business Finance Ltd unlisted shares?
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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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What is the lock-in period of Five-Star Business Finance Ltd unlisted share?
The minimum lock-in period of Five-Star Business Finance Ltd unlisted share is 1 year post the listing date. Prior to listing the shares can be sold in the active unlisted market. We provide a two way quote on all the shares we deal in. Your buy price for Five-Star Business Finance Ltd unlisted share is ₹0.01 and your sell price for Five-Star Business Finance Ltd unlisted share is ₹0.01.
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Chennai Office
19/10, Guru Vappa Chetty Street, Chintadripet, Chennai - 600002
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2701, Executive Tower G, Business Bay, Dubai, UAE
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54-19-25/1, Flat no.101, Sai Residency, Nelson Mandela Park Road, LIC Colony, Vijayawada (Urban), Andhra Pradesh - 520008