Retail only booked 8% of the Five Star Business Finance IPO's 46% final day purchases

Five Star Business Finance, a non-deposit-taking NBFC, earned a 45 percent subscription to its initial public offering, which closes today. Investors purchased 1.40 crore equity shares vs the 3.04 crore shares offered.

Retail and non-institutional investors have thus far shown only lukewarm interest, whereas qualified institutional investors have bid for shares 1.41 times the authorised limit (high networth individuals).

Retail investors purchased 8% of the shares, while non-institutional investors purchased 9% of the shares reserved for them.

Any public offering must have at least 90% subscription, and the allotted number of qualified institutional buyers must be completely subscribed.

With a price range of Rs 450–474, Five Star Business Finance hopes to generate Rs 1,960 crore through its first public offering.

The only component of the offer is the promoters' and investors' offer to sell 4.13 crore shares. Promoters Matrix Partners India Investment Holdings II, LLC and SCI Investments V will sell their shares through an offer for sale.

The shareholders selling shares via OFS are Matrix Partners India Investment Holdings II, LLC, Norwest Venture Partners X - Mauritius, and TPG Asia VII SF Pte Ltd.

The issue size has been decreased from 4.13 crore shares to 3.04 crore shares as a result of Five Star Finance Business already collecting Rs 588 crore through its anchor book.

On November 9, the bids for the offer were made public.

The company won't receive a single cent from the IPO because it's an offer for sale; instead, the selling shareholders will receive the entire sum.

Five initial public offerings (IPOs), including Five Star Business Finance, have already been issued in November, making it a particularly active month for the main market. The other four initial public offerings are Keystone Realtors, Kaynes Technology India, Archean Chemical Industries, and Inox Green Energy Services.