Five - Star Business Finance Limited

How to check the Five Star Business Finance IPO allotment status?

When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes. 

Here’s a step-by-step guide on how to check the Five Star Business Finance IPO allotment status:

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover page, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, you will find the ‘View all’ option
5. Once you click on ‘View all’, you will be directed to the ‘IPO’ tab
6. In the ‘IPO’ tab, click on ‘My applications’ 
7. In ‘My applications’, under the History section, your allotment status will be mentioned

About Five Star Business Finance IPO

With the economic activity picking pace and festive spending in full swing, the credit growth hit a decadal high in October this year. In such upbeat times, Chennai-based lender Five Star Business Finance, which has a strong presence in south India, is launching its IPO. The Five Star Business Finance IPO will be completely an offer for sale.  

This non-banking finance company (NBFC) provides secured business loans to micro-entrepreneurs and self-employed individuals. This segment accounts for around 62% of the assets under management (AUM). 

It also provides loans for asset creation such as home renovation or improvement as well as for meeting expenses for significant events such as marriage, healthcare and education. This segment accounts for the remaining 38% of the AUM. 

The NBFC has an active loan base of 2.30 lakh with a total AUM of ₹5,296 crore, as of June 2022. Its average ticket size of loans stands at ₹2.9 lakh.

Here are some key details about the Five Star Business Finance IPO: 

Financial snapshot 

Here’s a quick look at Five Star Business Finance IPO’s strengths, weakness, opportunities and risks (SWOT analysis)

Strengths and opportunities 

1. Fastest AUM growth among large peers. Its AUM grew at a CAGR of 65% between FY17 and 2021
2. Had the highest average return on AUM of 7.5% among its large peers in FY22
3. All of its loans are fully secured with more than 95% of the collateral being self-occupied residential property
4. An extensive network of 311 branches spread across eight states and one union territory
5. 92% of its branches are located in cities and towns with a population up to 10 lakh
6. Secures financing from diversified sources including term loans, issuance of NCDs, and principal protected market linked debentures 
7. Backed by marquee institutional investors such as TPG Capital, Sequoia Capital, and Matrix Partners 
8. Stage 3 loans or bad loans have fallen to 1.1% of the total AUM in June 2022 from 1.4% in March 2018
9. Its net interest margin has risen to 19.1% in FY22 from 16.6% in FY20

Weaknesses and  threats 

1. Customers belonging to the low-income group – earning not more than ₹25,000 per month – account for 70% of the total loan book
2. A substantial portion of its customers (30%) are first time borrowers, which increases the risks of non-payment or default 
3. Customers often may not have credit histories or formal income proofs that help assess their creditworthiness
4. An increase in interest rates could lead to an increase in the cost of borrowing. This could affect its profitability
5. 85% of its branch network is in key states such as Tamil Nadu, Andhra Pradesh, Telangana, and Karnataka

Five Star Business Finance IPO Details

|  Five Star Business Finance IPO date

The offer document filed by the company with the SEBI mentions that the Five Star Business Finance IPO’s opening date – in other words, the Five Star Business Finance IPO launch date – will be on 9 November 2022. The Five Star Business Finance IPO closing date is 11 November 2022. After this, investors will be updated about the allotment status on 16 November 2022. 

Investors, who have been allotted shares, can expect them to be credited in their demat account on 18 November 2022. The Five Star Business Finance IPO listing date is 21 November 2022. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE.

  | Five Star Business Finance IPO price band

The entire IPO is a book-built issue. The Five Star Business Finance IPO price band has been set between ₹450 and ₹474 per share. Interested investors can choose a price within this band to apply for the IPO. 

The Five Star Business Finance IPO listing price will be determined on 21 November 2022. The listing price is the price at which the shares of a company make their debut on the stock exchanges.

| Five Star Business Finance IPO lot size 

The Five Star Business Finance IPO details have been declared. The Five Star Business Finance IPO lot size is set at 31 shares, and an investor can apply for a minimum of 1 lot. Individual investors applying under the retail category can apply for up to 13 lots (404 shares). Meanwhile, the Five Star Business Finance IPO issue size is ₹1,960 crore.

How to pre-apply for the Five Star Business Finance IPO?

You can pre-apply for the Five Star Business Finance IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription. 

Follow these steps to pre-apply for the IPO: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘Five Star Business Finance IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Pre-Apply’
7. Accept the mandate on your UPI app

How to apply for the Five Star Business Finance IPO?

If you are interested in this investment opportunity but unsure how to apply for the Five Star Business Finance IPO, here we are listing out the steps for you. 

Here’s a step-by-step guide on how to apply for the Five Star Business Finance IPO on Upstox: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘Five Star Business Finance IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Apply’
7. Accept the mandate on your UPI app

Open a demat account with Upstox to apply for the Five Star Business Finance IPO

To apply for the Five Star Business Finance IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.

Here is a step-by-step guide on how to open a demat account with Upstox:

1. Click here to visit the demat account opening page on the Upstox website. 
2. Enter your phone number and other essential details to begin opening a demat account.
3. Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed. 
4. Complete the e-verification using the OTP sent to your registered mobile number. 

This is all it takes to open a demat account with Upstox. Easy and quick, right? 

Upstox – trading app to apply for the Five Star Business Finance IPO

Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India. 

You can apply for the Five Star Business Finance IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero. 

In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.