TPG pares stake worth ₹1,606 Crore in Five Star Business

27 Sep 2024 , 02:27 PM

On Thursday, Nomura purchased approximately 94 lakh shares of Five Star Business Finance for ₹752 Crore in a couple of block purchases. The shares were purchased at ₹800.50 per piece, a 1% decrease from Wednesday’s closing price of ₹808.40 on the BSE.

Nomura made investments through two funds: the Nomura India Investment Fund Mother Fund and the Nomura Funds Ireland Plc India Equity Fund.

Max New York Life Insurance Co and Max Life Insurance Company were also buyers of Five Star Business Finance shares, purchasing around 34 lakh shares at a cost of ₹275 Crore.

The sellers included Norwest Venture Partners X Mauritius, TPG Asia VII SF Pte Ltd, Peak XV Partners Growth Investments III, and Sequoia Capital Global Growth Fund III – Endurance Partners L.P. 

TPG Asia sold almost 2 Crore shares of the company, totalling ₹1,606 Crore. Norwest Ventures sold over 80 lakh shares for ₹644 Crore.

Peak XV Partners’ 58.76 lakh shares were sold for ₹471 Crore. Meanwhile, Sequoia Capital has 54.13 lakh shares worth ₹434 Crore.

Five Star Business Finance shares have been market laggards, returning 14% over a one-year period, which is lower than the Nifty’s return during the same period. The stock’s year-to-date return stands at 8%. Meanwhile, Nifty has returned 33% and 21%, respectively.

Five Star Business Finance is a Non-Banking Finance Company (NBFC) that offers secured loans to micro-entrepreneurs and self-employed individuals for business objectives and asset building, such as house renovations. 

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