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Five-Star Business Finance Ltd IPO

Price Range (₹)

Rs. 450 – Rs. 474

Issue Size (₹ in Cr.)

Up to 1960.01 crores

Minimum Quantity

31 shares

Bidding Period

Nov 9 – Nov 11, 2022

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About the Company

- The company  is an NBFC-ND-SI providing secured business loans to micro-entrepreneurs and self-employed individuals.
- Among the three best for Gross Non-Performing Assets as a percentage of AUM as of March 31, 2021. (Source: Company DRHP)

Strengths

Fastest AUM growth among compared peers with more than ₹30,000 million in AUM, with strong return and growth metrics
As per the CRISIL Report, the company has highest average return on AUM of 7.9% among compared peers with more than
₹30,000 million in AUM, across the period covering FY21, FY20 and FY19.  (Source: Company DRHP)

Strong “on-ground” collections infrastructure leading to it’s ability to maintain a robust asset quality
Uses a key mechanism to prevent defaults is maintaining a strong collections infrastructure
designed to keep the credit and repayment discipline of the borrower intact.(Source: Company DRHP)

Ability to successfully expand to new underpenetrated geographies
The company adopts a calibrated strategy of contiguous expansion across geographies where there is substantial demand for it’s offering
and which has allowed for the maintenance of robust asset quality. (Source: Company DRHP)

Risks

Require substantial capital for business and any disruption could have an adverse effect on business.
 Business  depends on, ability to raise both, debt and equity from various external sources. Also depends on, its ability to continually access those sources and secure low cost funding at rates lower than the interest rates(Source: Company DRHP)

The risk of non-payment or default by borrowers may adversely affect business, results of operations and
financial condition.
Customers may default on their repayment obligations due to various reasons including business failure, insolvency, lack of liquidity, loss of
Employment.(Source: Company DRHP)

30 second IPO overview

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Financials

Industry Trends

Subscription Status

Retail Individual Investor
Non-Institutional Investor
Qualified Institutional Buyers
Overall

Five-Star IPO FAQS

The lot size is 31 shares for Five-Star Business Finance IPO

The issue size of Five-Star Business Finance IPO is up to Rs.1960.01 Crores

Five-Star Business Finance IPO opens from Nov 9th,2022 and closes on Nov 11th,2022 for subscription.

Five-Star Business Finance IPO shares will be allotted on Nov 16th,2022

Five-Star Business Finance IPO listing date is Nov 21st ,2022

The price band of Five-Star Business Finance IPO is Rs.450 –Rs.474 per share.

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    Select IPO

    Go to the IPO section, select the IPO you want to apply from the list and click on ‘Apply’.

  • lock-in of 3 years

    Fill in the required details

    Fill in the quantity of the number of shares you want to buy. To apply at maximum price, check the cut-off price box and amount is auto calculated. If you want to apply at some other price within the price band, then you can enter the price manually by clicking on “Add bid” option.

  • lock-in of 3 years

    Confirm your request

    Click on proceed to confirm the order. You can view the placed order under “order book”.

  • lock-in of 3 years

    Select IPO

    Choose the IPO you want to apply from the list. Click on Apply.

  • lock-in of 3 years

    Fill in the required details

    Fill in the quantity of shares. To apply at maximum price, check the cut-off price box and amount is auto calculated. If you want to apply at some other price within the price band, then you can enter the price manually by clicking on “Add bid” option.

  • lock-in of 3 years

    Confirm your request

    Check the A/C, UPI details and click on proceed. You will get an UPI link by which payment can be made.

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FAQs

An Initial Public Offering (IPO) is when a company issues common stock or shares to the public for the first time. It is the process where a privately held company becomes a publicly traded company with the initial sale of its stock. An IPO is a tool that companies use to secure capital through investments for future use. In most instances, this investment is used to expand or improve the business.

A price band is a price floor and a cap between which a seller will let buyers place bids on a security, usually during an initial public offering (IPO).

Minimum Order Quantity, as name says, is the minimum number of shares investors can apply while bidding in an IPO. If investors want to bid for more shares, they can apply in multiples of IPO market lot (lot Size or IPO bid lot) of shares.

If an investor wants to place bids for less than Rs.2 lacs, he needs to apply in the Retail segment. If an investor wants to bid for more than Rs.2 lacs, he needs to apply in the HNI segment.

Cut-off price is the offer price, finalized by a company in consultation with the book running lead managers (BRLMs), which could be any price within the price band. Applying on Cut-off price means the investor is ready to pay whatever price is decided by the company at the end of the book-building process.

When applying at a cut-off price, an investor has to pay the highest price while placing the bid. If a company decides the final price lower than the highest price asked for IPO, the remaining amount is returned to the retail investor.

An investor can apply in all Mainboard IPOs through ICICIdirect. However, if the investor wants to apply in SME IPOs, he/she can do it through the net banking portal of ICICI Bank.

ASBA stands for "Applications Supported by Blocked Accounts". At the time of bidding, investors’ account is blocked to the extent of the bid amount and debited only at the time of allotment. This facility is being offered by ICICIDirect in affiliation with ICICI Bank Limited.

In other payment options, the bid amount is debited when investors’ bid application is placed with the stock exchanges. Under the ASBA process, the amount will be debited from investors’ bank account to the extent of successful allotment at the time of allotment. Until such allotment, the amount will remain blocked in investors’ bank account.

Application under this facility can be placed only for Book Built Public Issues.

An investor can place maximum of 3 bids in an issue.

The investor with Demat account in ICICIdirect can apply in an IPO by logging in to his ICICIdirect Account. The investor needs to select IPO and then the name of the IPO in which he would like to apply. Given below is the path:

Login to ICICIdirect account >> IPO >> Name of IPO

Investor can apply in the retail section of an IPO through iDirect Portal even if he has a 2-in-1 account (Demat, Trading Accounts) with us and Bank account with third party.

Yes, the investor can revise or withdraw the bids after application. It can be done only once the order is executed. The investor needs to go to the IPO Order Book and select the Transaction Id and then click on Withdraw Application/ Revise Bid. The application in the non- institutional category cannot be withdrawn but can only be revised.

However, this needs to be done during the issue itself and cannot be done after the issue is closed. In case of ASBA applications, for upward revision of bid, additional lien will be marked to the extent of incremental amount. However, in case of downward revision, differential money blocked earlier will not be released. Such amount, if any, will be released after allotment

No, one person cannot apply multiple times with same Demat/PAN for an IPO. If an investor applies in an IPO though multiple applications with same Demat account or same PAN Number, his applications will be rejected.

If an investor would like to place order for multiple applications, he/she can apply with his/her family member's name. But, all eligible family members should have a Demat account and a PAN number.

In cases where issue is over-subscribed, bidding for more than 1 lot from the same account doesn’t help as maximum of only 1 lot can be provided against each application. However, if the investor applies for 1 lot from different accounts, the probability of allocation of shares increases.

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