Five-Star Business Finance Limited will be strengthening its financial condition through a major debt increase. The board of the company will meet on March 17, 2025, to deliberate and approve the issue of Non-Convertible Debentures (NCDs) aggregating up to ₹40 billion by way of private placement.
Important points:
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NCD issue to be made in one or more tranches and/or series
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Subsequent to shareholder approval of issuance of ₹25 billion NCD in September 2024
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Strong financial performance reported by company with FY2024 revenue of ₹2,183 crore
Five-Star has expertise in secured business loans for micro-entrepreneurs in South India
The move is consistent with Five-Star's growth strategy and could strengthen its lending ability and market reach. The company's emphasis on the under-served micro-entrepreneur segment has fueled its accelerated growth, with a 40% CAGR in profit over the last five years.
Sources: Business Standard, Marketscreener, Company filings, March 17, 2025