Cyril Amarchand Mangaldas advised Five-Star Business Finance Limited (Five-Star) in relation to the INR 1593 crore (approx.) Initial Public Offer (IPO) of Five-Star. Five-Star is an NBFC providing secured business loans to micro-entrepreneurs and self-employed individuals, each of whom are largely excluded by traditional financing institutions. They have a strong presence in south India. 

The Capital Markets Practices of Cyril Amarchand Mangaldas advised Five-Star Business Finance on the transaction. The transaction team was led by Vijay Parthasarathi, Partner & Regional Co-head Markets Practice, Southern Region; Rohit Tiwari, Partner; with support from Kinjal Shah, Senior Associate; Chinar Gupta, Associate; and Vedansh Batwara, Associate.

The IPO of Five-Star consisted of an Offer for Sale (OFS) of 3,36,17,061 equity shares of face value of INR‚1 each (“Equity Shares”) of Five-Star Business Finance Limited (“Company” or the “Issuer”) for cash at a price of INR 474 per Equity Share (including a premium of INR 473 per Equity Share) (“Offer Price”), aggregating to INR 1,593.449 crore (the “Offer”). Its consisted of the following “Offered Shared” by the “Selling Shareholders”: 

i)                    28,59,873 equity shares aggregating to INR 135.558 crore by SCI Investments V;

ii)                  1,23,39,051 Equity Shares aggregating to INR 584.871 crore by Matrix Partners India Investment Holdings II, LLC;

iii)                2,07,321. Equity Shares aggregating to INR 9.827 crore by Matrix Partners India Investments II Extension, LLC

iv)                61,99,367 Equity Shares aggregating to INR 293.85 crore by Norwest Venture Partners X – Mauritius; and

v)                  1,20,11,449 Equity Shares aggregating to INR 569.343 crore by TPG Asia VII SF Pte. Ltd. 

Other Parties and Advisors to the transaction included Sidley Austin LLP (acted as international legal counsel for BRLM).

The transaction closed on November 17, 2022.