Sequoia, KKR-backed Five Star Business Finance Eyes IPO Worth INR 2,752 crore

NBFC, Five Star Business Finance (FSBFL) has filed preliminary draft papers with capital markets regulator Sebi for fund raising through IPO. The company plans to garner 2,751.95 crore through offer for sale by several marquee investors.

SCI Investments V would offload shares worth 257.10 crore. Matrix Partners India Investment Holdings II and Matrix Partners India Investments II Extension would sell 568.92 crore and 9.56 crore worth of shares, respectively.

Furthermore, Norwest Venture Partners X – Mauritius would offload 385.65 crore worth of shares, and TPG Asia VII SF Pte Ltd will sell Rs 1,349.78 crore of shares, while Deenadayalan Rangasamy and Varalakshmi Deenadayalan, who are part of promoter group, will also sell Rs 180.93 crore worth of shares via offer for sale (OFS).

The company may not receive any proceeds from the offer since it's completely an OFS. Promoter & promoter group own 44.31 percent shareholding in the company, and the remaining is held by investors.

Presenty, TPG Asia VII SF Pte Ltd is the largest shareholder in the company, owning 20.99 percent stake, followed by Matrix Partners India Investments Holdings II, LLC (14.09 percent), promoter Lakshmipathy Deenadayalan (13.01 percent), Norwest Venture Partners X – Mauritius (10.22 percent).

Alongside, SCI Investments V has 8.83 percent shareholding, Hema Lakshmipathy 7.18 percent, Sirius II Pte Ltd 6.04 percent, SCI Growth Investments III, and Sequoia Capital Global Growth Fund III - Endurance Partners LP 3.49 percent.

NBFC, Five Star Business Finance provides secured business loans to micro-entrepreneurs and self-employed individuals. It has a strong presence in south India, and all loans are secured by the borrowers' property, predominantly being self-occupied residential property (SORP).

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