Financial backers in non-bank moneylender Five Star Business Finance are in talks for an auxiliary offer deal, esteeming the organization at $1.2-1.3 billion (Rs 9,000 crore) and making it India’s new unicorn. Existing financial backer Morgan Stanley Private Equity could sell a piece of its stake for near $100 million to Sequoia Capital’s Global Growth Fund, a $8 billion venture vehicle intended to back the best organizations from its portfolio around the world, said these individuals, who mentioned secrecy. Sequoia India is now a financial backer in Five Star. Five Star, which gives tied down advances to independent companies, additionally checks Matrix Partners, Norwest Venture Partners and private value goliath TPG as its financial backers. It was esteemed at $950 million in July 2019, when TPG drove a $50 million round. Sequoia declined to remark while Five Star and Morgan Stanley didn’t react to messages looking for input.
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.
|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|