Private Equity

Liquidity Events

Five Star Business Finance's IPO undersubscribed at Rs.1,593-Cr but sails through

Economic Times  

The initial public offering of Five Star Business Finance managed to scrape through after the institutional portion was fully subscribed. The company received bids for 2.12 crore shares against the offered 3.05 crore shares. Overall, the issue was subscribed 0.70 times. At the lower end of the IPO price band of INR 450-474, the portion reserved for the qualified institutional buyer was subscribed 1.77 times. The non-Institutional segment was subscribed 0.61 times. The retail portion was subscribed 0.11 times. Five Star Business Finance raised INR 588 crore from anchor investors ahead of IPO. Overall it saw a subscription of 73%. At the upper end of the price band of INR 474 apiece, including the anchor book, the firm garnered INR 1593.06 crore. The IPO was an offer for sale aggregating to INR 1,960 crore by the company's promoters and existing shareholders. ICICI Securities, Kotak Mahindra Capital Company, Edelweiss Financial Services, and Nomura Financial Advisory and Securities (India) are the book-running lead managers to the issue.