Non-banking financial company Five Star Business Finance Ltd on Monday said it has mobilised ₹588 crore from anchor investors ahead of its initial public offering (IPO) that will open for public subscription on Wednesday. NBFC The ₹1,960 crore issue will open on November 9 till Friday, November 11. The price band for the issue is fixed at ₹450 per share to ₹474 per share.

The firm has decided to allocate 1.24 crore equity shares to anchor investors at ₹474 apiece, aggregating the transaction size to ₹588 crore, according to a circular uploaded on BSE’s website.

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 are among the anchor investors.

The initial share sale is entirely an offer for sale (OFS) of shares to the tune of ₹1,960 crore by existing shareholders and promoter group entities. The Chennai-based NBFC is backed by investors like TPG, Matrix Partners, Norwest Ventures, Sequoia and KKR.

As per market observers, Five Star Business Finance shares are commanding a premium (GMP) of ₹11 in the grey market today. The shares of the company are expected to list on the leading stock exchanges BSE and NSE on Monday, November 21, 2022.

AZB & Partners acted as legal counsel to Investor Selling Shareholders (TPG Asia VII SF Pte Ltd & Norwest Venture Partners X- Mauritius). The AZB & Partners team comprised of Partners Varoon Chandra, Lionel D’Almeida and Roxanne Anderson.

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