The company has priced its IPO between Rs 450-474 and has a lot size of 31 shares. That means investors have to invest at least Rs 13,950-14,694 to invest in this IPO (Five Star Business Finance IPO). Interested investors can invest in this IPO till November 11. Now we are going to know in detail whether to invest money here or not.
Whether to invest in Five Star IPO or not
A look at the loans of Five Star Business Finance shows that they have distributed most of the loans for a specific sector. Competition in the microfinance segment is also fierce. There is a period of interest rate hikes due to rising inflation and the Ukraine war has thrown the financial environment into disarray around the world. Considering all these aspects, the IPO of Five Star Business Finance is more suitable for investors who are looking for long-term investment. Also investors who are ready to take risk can consider investing in this IPO.
What is the downside
Competition is very high in business. Apart from this the strength of this finance company is only in South India, but the management is very good. So, in IPO of a company you can invest money for long term and not for list of profits.
What is IPO GMP?
According to market watchers, the Gray Market Premium (GMP) of the Five Star Business Finance IPO today stood at Rs. 12, compared to Tuesday’s GMP of Rs. 10 per equity share is Rs.2 more than Rs. The IPO will be an outright offer for sale (OFS), in which existing shareholders and promoters will sell shares worth Rs 1,960 crore.