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Five-Star Business Finance Ltd Unlisted Shares
Pre-IPO
Finance Company
About Company:
Five Star Business Finance Ltd is a Chennai-headquartered non-banking finance company. started in 1984 by V. K. Ranganathan. Over the last three decades, Five Star have been working as a specialized financial services company in addressing the needs of this segment, funding the people who don't afford loans easily.
Company Overview
Five-Star Business Finance Limited is a public limited company domiciled in India, and incorporated under the provisions of Companies Act 1956.
The Company is a systemically important non-deposit taking Nonbanking Finance Company (NBFC). The Company has received the Certificate of Registration dated June 9, 2016 in lieu of Certificate of Registration dated December 3, 2002 from the Reserve Bank of India (“RBI”) to carry on the business of Non Banking Financial Institution without accepting public deposits (“NBFC-ND”).
Over the last three decades, Five Star have been working as a specialized financial services company in addressing the needs of this segment, funding the people who were perceived to be unfundable. The businesses that we work with can be touched and felt in our everyday lives and are businesses that create real impact on the ground. Our 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.
The typical loan ticket ranges between Rs 1 lakh to Rs 10 lakh for a tenure between 24 and 84 months. The repayments are to be made on a monthly equated basis.
Promoter-Management
Name Designation
Lakshipathy Deenadayalam Chairman and Managing Director
Anand raghavan Independent directors
Bhama krishnamurthy Independent directors
Srinivasaraghavan Independent directors
Ramanathan Annamalai Independent directors
Vikaram vaidyanathan Non Executive nominee directors
Ravishankar GV Non Executive nominee directors
Thirulokchand Vasan Non Executive Directors
Niren shah Board observer norwest venture park Mauritius
Sanjeev mehra Board observer TPG Asia VII SF Pte.Ltd
Rohan Suri Board observer, Sirius II PTE ltd
Shareholders Pattern
Name of Shareholder Holdings (%)
TPG Asia VII SF Pvt. ltd. 22.53
Matrix Partners India Investment Holding ltd. 15.12
NHPEA Chocolate holding 13.26
SCI Investments 9.74
Norwest Venture Partners X - Mauritius 9.47
ATMARAM Builders 2.01
Rangarajan K 0.86
Jayachandaran 0.78
Srikanth 0.32
Janarathanan 0.27
Annual Reports
Investing Opportunities
The company clocked a full year portfolio growth of over 84%, while the profits grew by over 67% for the year.
Some of the operational and financial highlights are given below:
Parameter FY 2020 FY 2019 Growth
AUM (INR Cr) 3,892.23 2,112.81 84%
Amount disbursed 2,408.67 1,481.46 63%
Branches (#) 252 173 46%
Number of accounts 143,079 72,890 96%
Number of employees 3,734 1,971 89%
Total income 260.84 156.28 67%
The Company managed to raise good quantum of funds despite trying liquidity conditions. From a borrowing outstanding of INR 955 Crores in FY 2019, the company ended FY 2020 with a borrowing outstanding of INR 2,372 Crores which will augur well from a shareholder return perspective