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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


FIVE-STAR-BUSINESS-FIN-LTD-AR-2019-2020
.pdf
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FIVE-STAR-BUSINESS-FIN-LTD-AR-2018-19
.pdf
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FIVE-STAR-BUSINESS-FIN-LTD-AR-2017-18
.pdf
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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

Frequently Asked Questions

  • What is the lock-in period of unlisted shares?
    If the company is unlisted, the shares can be traded as many times as per the will but once the company is listed, the shares can not sold for next 1 year.
  • Does SEBI regulate Unlisted Market?
    Rules and Regulations of SEBI are applicable in the Unlisted Market but to become an unlisted share broker, there is no such regulation yet.
  • Is buying or selling Unlisted Shares in India legal?
    Yes it is legal to buy and sell unlisted shares in India.
  • What is the Minimum Ticket Size for Investment in Unlisted Shares?
    Depending on the lot size of the shares, there is no fixed ticket size to buy and sell unlisted shares.
  • What is the Minimum Ticket Size for Investment in Unlisted Shares?
    Depending on the lot size of the shares, there is no fixed ticket size to buy and sell unlisted shares.
  • Is buying or selling Unlisted Shares in India legal?
    Yes it is legal to buy and sell unlisted shares in India.
  • Does SEBI regulate Unlisted Market?
    Rules and Regulations of SEBI are applicable in the Unlisted Market but to become an unlisted share broker, there is no such regulation yet.
  • What is the lock-in period of unlisted shares?
    If the company is unlisted, the shares can be traded as many times as per the will but once the company is listed, the shares can not sold for next 1 year.
  • What is the Minimum Ticket Size for Investment in Unlisted Shares?
    Depending on the lot size of the shares, there is no fixed ticket size to buy and sell unlisted shares.
  • Does SEBI regulate Unlisted Market?
    Rules and Regulations of SEBI are applicable in the Unlisted Market but to become an unlisted share broker, there is no such regulation yet.
  • What is the lock-in period of unlisted shares?
    If the company is unlisted, the shares can be traded as many times as per the will but once the company is listed, the shares can not sold for next 1 year.
  • Is buying or selling Unlisted Shares in India legal?
    Yes it is legal to buy and sell unlisted shares in India.
  • What is the lock-in period of unlisted shares?
    If the company is unlisted, the shares can be traded as many times as per the will but once the company is listed, the shares can not sold for next 1 year.
  • What is the Minimum Ticket Size for Investment in Unlisted Shares?
    Depending on the lot size of the shares, there is no fixed ticket size to buy and sell unlisted shares.
  • Is buying or selling Unlisted Shares in India legal?
    Yes it is legal to buy and sell unlisted shares in India.
  • Does SEBI regulate Unlisted Market?
    Rules and Regulations of SEBI are applicable in the Unlisted Market but to become an unlisted share broker, there is no such regulation yet.
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