Five Star Business Finance IPO review by Anil Singhvi: Subscribe or avoid? Check recommendation here

Five Star Business Finance IPO: Zee Business Managing Editor, Anil Singhvi on Wednesday in a special segment advised investors to subscribe in Five Star Business Finance’s Initial Public Offering (IPO) for long term which opened today, November 9, 2022 for subscription.

Anil Singhvi said that the company has experienced promoters and a unique business model where they lend only 35-40 per cent of the mortgage item and claim 20-25 per cent interest on the loan. The company also has less Non-Performing Assets (NPAs) as compared to banks. He further said that the company has strong financial growth and good management.

Listing the cons, Singhvi said that the industry has a lot of competition and Five Star Business Finance has strength in only Southern India.

Anil Singhvi also said that if the Five Star Business Finance listing opens lower than expected one must buy more shares as it is one for the long term. 

Singhvi said that the valuation is reasonable looking at Five Star Business Finance’s financial performance. 

#IPOAlert

आज खुलेगा #FiveStarBusinessIPO, प्राइस बैंड ₹450-474/शेयर

फाइव स्टार बिजनेस फाइनेंस कंपनी में क्या है खास?

शॉर्ट टर्म और लॉन्ग टर्म के लिहाज से क्या करें?

इश्यू को सब्सक्राइब करें या छोड़ दें?

जानिए @AnilSinghvi_ की राय...#StockMarket #IPOMarket pic.twitter.com/zgI99bdJPP

— Zee Business (@ZeeBusiness) November 9, 2022

Five Star Business Finance IPO: Details 

The subscription window for non-banking financial company Five Star Business Finance IPO will close on November 11. The firm provides secured business loans to micro-entrepreneurs and self-employed individuals — the two segments of borrowers largely excluded by traditional financing institutions.

The Chennai-based non-banking financial company has fixed a price band of Rs 450-474 per equity share.

The IPO is entirely an offer for sale (OFS) of shares to the tune of Rs 1,960 crore by existing shareholders and promoter group entities.

The Chennai-based NBFC is backed by investors like TPG, Matrix Partners, Norwest Ventures, Sequoia and KKR.

The firm has decided to allocate 1.24 crore equity shares to anchor investors at Rs 474 apiece, aggregating the transaction size to Rs 588 crore, according to a circular uploaded on BSE's website.

Five Star Business Finance IPO Allotment Date

Five Star Business Finance provisional allotment date is November 16.

Five Star Business Finance IPO Listing Date NSE, BSE

Five Star Business Finance IPO tentative listing date is November 21, the company will be listed both in BSE and NSE.

Check more details on Five Star Business Finance here