Five Star Business plans block deal worth ₹4,316.90 Crore

26 Sep 2024 , 09:49 AM

Five Star Business Finance has announced a secondary block sale of ₹4,316.9 Crore, as reported sources.

The sale includes up to 5.6 Crore shares, or 19.22% of the company’s total outstanding shares.

Sources previously stated that a big block deal was possible in Five Star Business Finance, with private equity investors such as Peak XV Partners and others expected to sell up to a 20% interest.

The offer price is set at ₹768, a 5% decrease from the closing price of ₹808. A 12-month lock-up term will apply to selling stockholders following the transaction.

The books for this transaction will close at 7:30 a.m. on September 26, 2024. Nomura, Kotak, and Motilal are among the broking firms handling the transaction.

Peak XV Partners owned 6.25% of the non-banking financial corporation (NBFC) in the June quarter, according to exchange statistics.

In December 2023, TPG Asia VII SF Pte, Matrix Partners India Investment Holdings II LLC, and Peak XV Partners Investments V sold their shares in Five Star Business Finance for ₹1,656 Crore in open market transactions.

In September 2023, Norwest Venture Partners X Mauritius, Matrix Partners India Investment Holdings II LLC, and TPG Asia VII SF Pte sold 2.55 Crore shares in Five Star Business Finance for ₹1,863 Crore in open market transactions.

At around 9.45 AM, Five Star Business was trading 0.26% lower at ₹805.90, against the previous close of ₹808 on NSE. The counter touched an intraday high and low of ₹848, and ₹801, respectively.

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