The shares of Five Star Business Finance will make their market debut on November 21. The grey market premium (GMP) of the share sale stands at minus 2. This implies that the Five Star Business Finance stock is likely to be listed at Rs 472 , Rs 2 lower than the upper end of the price band. The company offered its shares in a price band of Rs 450 to Rs 474 during the IPO held from November 9 to November 11.
The IPO was subscribed 70 per cent on the last day of issue on November 11.
The portion for retail investors was subscribed 11 per cent of the quota, while the portion set aside for non-institutional investors was subscribed 0.61 times on final day.
The IPO was entirely an offer for sale (OFS) of shares to the tune of Rs 1,960 crore by existing shareholders and promoter group entities.
The non-banking financial company (NBFC) raised Rs 588 crore from anchor investors a day ahead of its IPO. The firm decided to allocate 1.24 crore equity shares to anchor investors at Rs 474 apiece.
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 were among the anchor investors.
The lot size of Five Star Business Finance IPO was 31 shares for which one would have to spend Rs14,694. A retail individual investor could submit bids for up to 13 lots or 403 shares by spending Rs 1,91,022. The allotment status was declared on the official website of the registrar KFin Technologies Limited.
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.
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