Five-Star Business Finance IPO

Five-Star Business Finance Limited is an NBFC-ND-SI providing secured business loans to micro-entrepreneurs and self-employed individuals, each of whom is largely excluded by traditional financing institutions. Over 95% of its loan portfolio comprises loans from between Rs.1 lakh to Rs.10 lakhs in principal amount. The company has developed a business model that is predicated on arriving at an appropriate risk framework, with the optimal installment-to-income ratio to ensure that its customers have the necessary means to repay the loan after meeting their regular obligations and other event-based capital requirements. It has an extensive network of 268 branches as of September 30, 2021, spread across approximately 126 districts, eight states, and one union territory, with Tamil Nadu, Andhra Pradesh, Telangana, and Karnataka being the key states. ;