ADIA, Others Invest USD 72 M In Lender Five Star Business


Small business and mortgage loans provider Five Star Business Finance, ahead of its stock market debut, raised Rs 588 crore (around $72 million) from 16 anchor investors including Abu Dhabi Investment Authority (ADIA), Fidelity Investments, Capital Research and White Oak, among others. The public issue will open for subscription from 9-11 November.

According to the company’s statement, the TPG-backed Five Star Business Finance has decided to allocate 1,24,05,094 (1.24 crore) equity shares to anchor investors at Rs 474 per piece, aggregating the transaction size to Rs 588 crore.

The IPO is strictly an offer for sale (OFS), with shareholders offloading stakes worth Rs 1,960 crore. The offer price range is Rs 450-474 per share.

The non-banking financial corporation (NBFC) based in Chennai has decided to allocate 90,06,316 (90 lakh) shares to nine foreign portfolio investors (FPIs) for a total of Rs 426.90 crore. Capital Research, Fidelity Investments, Abu Dhabi Investment Authority, Norges Bank, Carmignac Gestion, White Oak, Malabar Investments, Bay Capital, and Segantii are among the recipients, according to the statement.

Enam, SBI Life Insurance, HDFC Mutual Fund, Baroda BNP Mutual Fund, Edelweiss Mutual Fund, Mirae Mutual Fund, and Gee Cee Ventures, among others, participated in the anchor book.

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