Ahead of its IPO, 16 anchor investors have picked up shares worth ₹588 crore in the Chennai-based NBFC Five Star Business Finance Ltd. The company’s public issue is set to open for subscription on November 9.
Seven domestic investors (four mutual funds, a life insurance company, an AIF and a NBFC) were allocated 33.98 lakh shares for ₹161 crore, the company said in a press release. These include Enam, SBI Life Insurance, HDFC Mutual Funds, Baroda BNP Mutual Fund, Edelweiss Mutual Fund, Mirae Mutual Fund and Gee Gee Ventures.
Another 90 lakh shares were allotted to nine foreign portfolio investors for ₹427 crore. They are Capital Research, Fidelity Investments, Abudhabi Investment Authority, Norges Bank, Carmignac Gestion, White Oak, Malabar Investments, Bay Capital and Segantii.
Five Star Business Finance specialises in providing finance to small and micro businesses to whom formal institutional financers do not lend to. Some of the company’s investors are selling part of their stakes, though nobody is exiting fully, the company’s officials told a press conference here on Monday. The IPO offers for sale shares for ₹1,960 crore, selling each share at around ₹474.