PE investors may sell up to 8.8% via block deals in Five Star Business Finance

Private equity investors may use block transactions to sell up to 8.8% of their holdings in Five Star Business Finance. 

The floor price for the block deals from Five Star Business Finance is probably going to be Rs 724 per share, which is 6.25 percent less than the price on the market right now.

According to media sources, Five Star Business Finance might have a base size of up to Rs 1,860 crore.

For the first quarter of this fiscal year, the non-bank lender reported a 31.8 percent increase in net profit to Rs 183.7 crore. In the same time of the year before, FY23, the company's net profit was Rs 139.4 crore.

One of the fastest-growing companies in the segment, Five Star Business Finance provides secured business loans to micro-entrepreneurs and self-employed individuals (secured by self-occupied residential property) with a strong presence in south India.

Sources: Media Reports