The ₹1,960.01-crore initial public offering of Five Star Business Finance Ltd will open to public today. The NBFC has fixed price band at ₹450 to ₹474 and the entire issue is an offer for sale. The issue will close on November 11.

Market lot is 31 shares. Half of the offer has been reserved for qualified institutional buyers, 15 per cent for high-net-worth individuals, and the balance 35 per cent for retail investors.

Five Star Business Finance is one of the prominent NBFCs based in Chennai that enjoys unicorn status with the presence of marquee investors such as TPG, Matrix Partners, Norwest Ventures, Sequoia and KKR

Five Star provides secured business loans, and 95% of their loan disbursements are for loans between ₹1 and 10 lakh

Anchor investors

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.

Sellers

The OFS will 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.

Currently, TPG Asia holds a 21.45 per cent stake, Matrix Partners owns 12.67 per cent, Norwest Venture has a 10.17 per cent stake and SCI Investments holds an 8.79 per cent stake in the company.

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