The initial public offer (IPO) of Five-Star Business Finance received bids for 2,12,04,031 shares as against 3,04,88,966 shares on offer. The issue was subscribed 70%.

The Qualified Institutional Buyers (QIBs) category was subscribed 1.77 times. The Non Institutional Investors (NIIs) category was subscribed 61%. The Retail Individual Investors (RIIs) category was subscribed 11%.

The issue opened for bidding on Wednesday (9 November 2022) and it closed on Friday (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 will decline 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.

Ahead of the IPO, Global Health on Monday, 7 November 2022, raised Rs 588 crore from anchor investors. The board allotted 1.24 crore shares at Rs 474 per share to 21 anchor investors.

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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