Chennai-based non-banking financial institution Five Star Business Finance Limited raised Rs 588 crore ahead of its Initial Public Offering (IPO) program via anchor book. The Bombay Stock Exchange (BSE) filing revealed that Five Star Business allocated 1.24 crore equity shares to 21 anchor investors who participated in the anchor book. 

The company issued the shares at an upper price band of Rs 474 per share. 

Several marquee investors like Smallcap World Fund Inc, American Funds, Fidelity Funds, Volrado Ventures, Abu Dhabi Investment Authority, Government Pension Fund Global, Carmignac Portfolio, and Segantii India Mauritius bought shares in the company. 

Apart from the marquee investors, domestic mutual funds and other companies like  HDFC Mutual Fund, Baroda BNP Paribas, Edelweiss, Mirae Asset, and SBI Life Insurance Company also participated in the anchor book. 

Five Star Business Finance will enter the capital market on Wednesday, November 9, with an issue price ranging from Rs 450-475 per share. The company plans to raise Rs 1,900 crore via its public issue. It will allow investors to bid for a minimum of 31 equity shares. The IPO program will be closed on November 11. 

The non-banking financial institution registered a 19.49 per cent increase in total income in the March quarter, 2022 compared to the same quarter of the previous financial year. Along with total income, the company also reported a 12 per cent growth in EBITDA and a 26 per cent growth in PAT (profit after tax).