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Waaree Energies, Five Star Business Finance Get SEBI’s Nod for IPO

24 February 20234 mins read by Angel One
Waaree Energies, Five Star Business Finance Get SEBI’s Nod for IPO
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About Five Star Business Finance IPO

Five Star Business Finance filed the draft papers with market regulator SEBI in November 2021. Reportedly, the company is seeking a valuation of around $3 billion post IPO launch.

According to its DRHP, Five Star Business Finance is looking to mop up as much as Rs. 2,751.95 crores via this public issue. The initial share sale will consist of only OFS, where its existing shareholders and promoters will divest stakes.

The shareholders and promoters participating in this OFS include Matrix Partners India Investment Holdings, SCI Investments V, TPG Asia VII SF PTE, Norwest Ventures Partners X- Mauritius, Varalakshmi Deendayalan, Deendayalan Rangasamy, and others.

Moreover, entities such as ICICI Securities, Kotak Mahindra Capital Company, Edelweiss Financial Services, and Nomura Financial Advisory and Securities (India) are the lead book-running managers to this IPO.

In March 2021, this Chennai-based NBFC managed to raise around Rs. 1,700 crores from existing and new set of investors.

Five Star Business Finance features a strong market presence in Southern India, especially in the state of Tamil Nadu. The company has diversified from 103 branches in 2017 to 260 units in 2021. It has its branches in around 8 states and 120 Indian districts.

The NBFC’s consolidated portfolio grew at 81% CAGR during FY2016 – FY2020. However, this growth became moderate at a pace of 14% during FY2021 due to the onset of the pandemic.

About Waaree Energies IPO

Waaree Energies filed the draft prospectus with SEBI in September 2021. This solar module manufacturing firm plans to garner around Rs. 1,500 crores through an initial share sale. According to its DRHP, this public offer will consist of a new issue of shares worth Rs. 1,350. It will collect the remaining amount through an OFS aggregating up to 4,007,500 equity shares by existing shareholders and promoters.

The company may go for the issuance of additional equity shares, including a preferential issue amounting to around Rs. 270 crores. If this is done, then Waaree Energies will reduce the size of fresh issue shares.

Waaree Energies plans to use the proceeds from this public offering for the following purposes:

  • Rs. 910.31 crores for its solar cell manufacturing set up

  • Rs. 141.42 crores for its solar module space

The company will use the remaining proceeds for general corporate uses.

Waaree Energies is undoubtedly one of the major players in India’s solar energy space. It entirely focuses on PV (Photo-Voltaic) module manufacturing and features an aggregate installed volume of 2 GW.

Currently, it operates through three manufacturing units consisting of four factories in Nandigram, Surat, and Tumb. It is planning to open a new manufacturing branch in Chikhli, Gujarat.

Bottom Line

Both Five Star Business Finance and Waaree Energies feature a strong market presence. Further, their ardent plans for growth will attract investor sentiments, which may be beneficial for their IPOs.

Source – Business Standard

Frequently Asked Questions

  1. Who are the book-running managers of Waaree Energies IPO?

Book running managers of Waaree Energies IPO are HSBC Securities and Capital Markets (India) Private Ltd., Axis Capital Ltd., Intensive Fiscal Services Private Ltd., and ICICI Securities Ltd.

  1. What was Five Star Business Finance’s AUM in March 2021?

Five Star Business Finance’s AUM stood at Rs. 4,445 crores on 31 March 2021.

  1. When were both these companies founded?

Five Star Business Finance was founded in 1984, whereas Waaree Energies was founded in 1989.

Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.

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