Five-Star Business Finance raises Rs 588 cr from 16 anchor investors

Non-banking financial corporation Five Star Business Finance Limited ("The Company") has raised ₹588 crore from 16 anchor investors ahead of its initial public offering (IPO), which is opening for public subscription on Wednesday, 9th November. Investors can bid for a minimum of 31 Equity Shares and in multiples of 31 Equity Shares thereafter.

The Chennai-based NBFC has allocated 1,24,05,094 shares at ₹474 per share aggregating to ₹588 crore to the anchor investors on Monday, November 7th.

The company has allocated a total of 90,06,316 shares to nine foreign portfolio investors (FPIs) for approximately ₹426.90 crore. The allottees include Groups like Capital Research, Fidelity Investments, Abu Dhabi Investment Authority, Norges Bank, Carmignac Gestion, White Oak, Malabar Investments, Bay Capital and Segantii.

Seven domestic investors (including four mutual funds, a life insurance company an AIF and a NBFC) were allocated a total of 33,98,778 shares for approximately ₹161.10 crore. The domestic investors include Groups such as Enam, SBI Life Insurance, HDFC Mutual Fund, Baroda BNP Mutual Fund, Edelweiss Mutual Fund, Mirae Mutual Fund and Gee Cee Ventures.

Last week, Five Star Business Finance announced that its Initial Public Offer (IPO) will be open for subscription between November 9 and 11 and the anchor book will be open one working day prior to the issue opening date, i.e. November 7.

The IPO is completely an offer for sale (OFS) up to ₹1,960 Cr by existing institutional investors. The individual promoter is not selling any shares as part of the offer for sale.

ICICI Securities Limited, Edelweiss Financial Services Ltd, Kotak Mahindra Capital Company Limited and Nomura Financial Advisory and Securities(India) Private Ltd are book running lead manager and KFin Technologies is the registrar to the issue.

Source : Equity Bulls

Keywords

FiveStarBusinessFinance IPO FundRaising AnchorInvestor