Five Star Business Finance Ltd Share Price: What Are Analysts' Viewpoints Post Listing?

Five Star Business Finance IPO Listing Price

Five Star Business Finance, the small business loan provider made a dull debut in the stock market on Monday. The shares of this NBFC got listed at a discount of 5% to the issue price of Rs. 474 on BSE.  On NSE, the share was listed at a discount of around 1.1% which is around Rs. 468.8. 

Five Star Business Finance IPO couldn’t get a full subscription from November 9th to 11th. Only 70% of the issue was subscribed. The allotted quote for the HNIs and the retail investors which were 61% and 11 % respectively remained unsubscribed. On the other hand, the QIB portion garnered subscriptions 1.77 times. 

This IPO was an offer for sale by the promoters and the present shareholders of the company. Thus, the company wasn’t entitled to receive any proceeds from the IPO as per the RHP. The existing shareholders who sold their shares were supposed to receive the proceeds. 

(Source: As narrated by Anil Singhvi in a Zee Business show)

Five Star Business Finance Share Price: Analysts' Opinions

As the shares of this NBFC started trading at a discount today, analysts have come up with their opinions on whether to buy, sell or hold the share. Let’s take a look at the opinions to have a clear perspective about investing in Five Star Business Finance. 

Choice Broking believes that this NBFC has a strong infrastructure for on-ground collection, in-house sourcing, better asset quality and excellent risk management skills and opportunities in the market as small business loans are yet to penetrate multiple parts of the economy and businesses. 

However, experts from Tradingo, commented that the fierce competition in this market and increasing interest rates can take a toll on the performance of the company. He also suggested that investors who are looking forward to listing gains keep the stop loss intact at Rs. 460. Many of its peers are also available in the secondary market at better pricing. Some of the biggest competitors of Five Star Business Finance are Shriram City Union Finance, Veritas Financial and Management services, Digikredit Finance, Aavas Financiers, AU Small Finance and others. 

The profit of this NBFC stood at Rs. 453.5 crores as of 31st March 2022 against Rs. 359 crores in 2021. The revenue from operations surged to Rs. 1254 in FY22 compared to Rs. 1050 in FY21. The AUM grew by 15.09% YoY that is from Rs. 4400 crores in FY21 to Rs. 5100 crores in FY22. 

Take a detailed look at Five Star Business Finance's details here.

Fives Star Business Finance Ltd Share Price: Latest Movement

Shares of Five Star Business Finance jumped by 13.90% on the day of its debut (November 21st, 2022) however later in the day, it settled with a 3% gain. 

This is not an investment advisory. The blog is for information purposes only. Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Past performance is not indicative of future returns. Please consider your specific investment requirements, risk tolerance, goal, time frame, risk and reward balance, and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs. The performance and returns of any investment portfolio can neither be predicted nor guaranteed.