In the EGM to be held on 22.04.2021, Five Star Business is issuing 14,71,771 (Fourteen Lakhs Seventy-One Thousand Seven Hundred and Seventy-One) equity shares of Rs 10/- (Rupees Ten Only) on preferential basis by way of private placement to various investors, the list is mentioned below.
|Name of the Investor||No. of shares||Premium||Money Raised|
|Sequoia Capital Global Growth Fund III -Endurance Partners L.P.||10,15,729||Rs.3508||357 Crores|
|Norwest Venture Partners X – Mauritius||26,741||Rs.3508||9.50 Crores|
|Sirius II Pte. Ltd.||1,45,104||Rs.3508||51 Crores|
|TVS Shriram Growth Fund 3||2,84,197||Rs.3508||100 Crores|
This current raising of funds have valued the Five-Star Business at ~$1.3 Billion.
About Five-Star Business
Formed in the year 1982, Five Star is non-Banking Finance Company (NBFC) with the Reserve Bank of India (RBI), specialized in providing financial services to address the needs of unbanked, and unserved segment, funding the people who were perceived to be non-fundable. The customers include all the way from small shop owners, flower vendors, maids, masons to small and medium enterprises that form the backbone of India’s economy.
Five Star provides Small business loans to meet borrower requirements for commencing new businesses, expansion of his/ her existing businesses and to settle any unorganized dues he/ she has taken to further their businesses. The loans are given based on the company’s evaluation of the borrower household cashflows coupled against the security of the borrower’s house collateral.
|Particulars (in Crs)||Mar-15||Mar-16||Mar-17||Mar-18||Mar-19||Mar-20|
|Impairment of Assets||0||0||0||0||7||50|
|Profit before tax||16||20||30||78||217||390|
|EPS in Rs||10||12||13||29||65||102|