The NBFC’s IPO, which fixed price band at ₹450-474, will close on Friday. The market lot is 31 shares. The IPO was subscribed just 2 per cent on Day 1. As against an offer for 3.04 crore shares, it received bids for 97.81 lakh shares.
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The quota for Qualified Institutional Buyers (QIBs) was subscribed 1.01 times while retail Individual Investors (RIIs) and Non-institutional Investors’ portions remained lukewarm with the portion getting just 6 per cent and 2 per cent, respectively. Half of the offer has been reserved for the qualified institutional buyers, 15 per cent for high-net-worth individuals, and the balance 35 per cent for the retail investors.
Five Star Business Finance is a prominent NBFC based in Chennai enjoying unicorn status with the presence of marquee investors such as TPG, Matrix Partners, Norwest Ventures, Sequoia and KKR.
Ahead of the issue on Monday, the NBFC has raised ₹588 crore from anchor investors.
The firm has decided to allocate 1.24 crore equity shares to anchor investors at ₹474 apiece, who included SmallCap World Fund, Fidelity Investments, Capital Research, Malabar Investments, Government Pension Fund Global, Abu Dhabi Investment Authority, Norges Bank, Carmignac Gestion, White Oak, Bay Capital, Segantii, SBI Life Insurance, HDFC Mutual Fund (MF), Baroda BNP MF, Edelweiss MF and Mirae MF.
The entire issue is an offer for sale. l This would see the sale of shares to the tune of ₹166.74 crore by SCI Investments V, ₹719.41 crore by Matrix Partners India Investment Holdings II LLC, ₹12.08 crore by Matrix Partners India Investments II Extension LLC, ₹361.44 crore by Norwest Venture Partners X- Mauritius and ₹700.31 crore by TPG Asia VII SF Pte Ltd.