FiveStar Business Finance's IPO subscribed 70 pc on last day of offer

The Initial Public Offering (IPO) of FiveStar Business Finance was subscribed 70 per cent on Friday, the last day of subscription.

The Rs 1,960 crore IPO received bids for 2,12,04,031 crore shares against 3,04,88,966 crore shares on offer, according to NSE data.

The category for Qualified Institutional Buyers (QIBs) was subscribed 1.77 times and the portion for non-institutional investors received 61 per cent subscription.

The quota for Retail Individual Investors (RIIs) got subscribed 11 per cent.

For the Initial Public Offering (IPO), FiveStar Business Finance has fixed the price band of Rs 450-Rs 474 per share.

According to its merchant canker, ''If the higher end of the price band is taken, the offered shares would have been 2,89,46,203 shares and the subscription would have been 81 per cent to the issue.'' The company has raised Rs 588 crore from anchor investors.

The IPO is entirely an Offer For Sale (OFS) of shares to the tune of Rs 1,960 crore by existing shareholders and promoter group entities.

The Chennai-based NBFC is backed by investors like TPG, Matrix Partners, Norwest Ventures, Sequoia and KKR.

ICICI Securities, Kotak Mahindra Capital Company, Edelweiss Financial Services and Nomura Financial Advisory and Securities (India) Private Limited are the book-running lead managers to the issue.