FiveStar Business Finance IPO subscribed 2% on Day 1

Non-banking financial company FiveStar Business Finance's initial public offering (IPO) was subscribed two per cent on the first day of the issue.

The company received bids for 7,21,742 shares against 3,04,88,966 shares on offer, according to data available on the National Stock Exchange (NSE).

Retail individual investors subscribed 4.30 lakh shares. Qualified Institutional Buyers (QIBs) have bid for 2.55 lakh shares.

These bids account for 2 per cent of the total offer size. The IPO closes on November 11.

FiveStar Business Finance has fixed a price band of Rs 450-Rs 474 per share.

On Monday, FiveStar Business Finance Ltd said it has raised Rs 588 crore from anchor investors.

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.

Five Star Business Finance provides secured business loans to micro-entrepreneurs and self-employed individuals, the two segments of borrowers largely excluded by traditional financing institutions.

ICICI Securities, Kotak Mahindra Capital Company, Edelweiss Financial Services and Nomura Financial Advisory and Securities (India) Private Limited are the book-running lead managers to the issue.

Click here to get more Stock Market updates I Zee Business live