Cyril Amarchand Mangaldas advises in connection with the IPO of a five star corporate financing

Cyril Amarchand Mangaldas has advised Five-Star Business Finance Limited (Five-Star) on Five-Star’s Initial Public Offering (IPO) valued at approximately INR 1.593 billion. Five-Star is an NBFC that provides secured business loans to micro-entrepreneurs and the self-employed, all of whom are largely excluded from traditional finance institutions. They have a strong presence in South India.

Cyril Amarchand Mangaldas’ capital markets practice advised Five-Star Business Finance on the transaction. The transaction team was led by Vijay Parthasarathi, Partner & Regional Co-Head Markets Practice, Southern Region; Rohit Tiwari, Partner; with support from Kinjal Shah, Senior Associate; Chinar Gupta, collaborator; and Vedansh Batwara, Associate.

The Five-Star IPO consisted of an offer to sell (OFS) of 3.36.17,061 shares with a par value of INR 1 each (“Shares”) from Five-Star Business Finance Limited (“Company” or the “Issuer”) for cash a price of INR 474 per share (including a premium of INR 473 per share) (“Offer Price”), totaling INR 1,593,449 (the “Offer”). It consisted of the following “Offered Shared” from the “Selling Shareholders”:

• 28,59,873 shares of SCI Investments V for a total value of INR 135,558 crore;
• 1.23.39.051 shares of Matrix Partners India Investment Holdings II, LLC with a total value of INR 584.871 billion;
• 2.07.321. Matrix Partners India Investments II Extension, LLC shares valued at a total of INR 9.827 billion
• 61,99,367 equity shares with an aggregate value of INR 293.85 crore from Norwest Venture Partners X – Mauritius; and
• 1.20.11.449 Equity shares with a total value of INR 569.343 billion of TPG Asia VII SF Pte. GmbH.

Other parties and advisers to the transaction included Sidley Austin LLP (acting as international counsel to BRLM).

The transaction closed on November 17, 2022.

About Cyril Amarchand Mangaldas

Cyril Amarchand Mangaldas (CAM) is India’s leading law firm with a global reputation as a trusted advisor to its clients. The firm advises a large and diverse group of clients, including domestic and international commercial firms, financial institutions, private equity and venture capital funds, start-ups, and government and regulatory agencies. The firm’s generalists, specialists and senior ex-regulators expertly guide clients through a spectrum of transactions, sectors and regulations. With 1000 lawyers and 160 partners, the firm is the largest full service law firm in India. It has branches in major business centers in Mumbai, Delhi-NCR, Bengaluru, Ahmedabad, Hyderabad, Chennai, GIFT City and also in Singapore.