Cyril Amarchand Mangaldas advised Five-Star Business Finance Limited (Five-Star) in relation to the INR 1593 crore (approx.) Initial Public Offer (IPO) of Five-Star. Five-Star is an NBFC providing secured business loans to micro-entrepreneurs and self-employed individuals, each of whom are largely excluded by traditional financing institutions. They have a strong presence in south India.
The Capital Markets Practices of Cyril Amarchand Mangaldas 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, Associate; and Vedansh Batwara, Associate.
The IPO of Five-Star consisted of an Offer for Sale (OFS) of 3,36,17,061 equity shares of face value of INR‚1 each (“Equity Shares”) of Five-Star Business Finance Limited (“Company” or the “Issuer”) for cash at a price of INR 474 per Equity Share (including a premium of INR 473 per Equity Share) (“Offer Price”), aggregating to INR 1,593.449 crore (the “Offer”). Its consisted of the following “Offered Shared” by the “Selling Shareholders”:
i) 28,59,873 equity shares aggregating to INR 135.558 crore by SCI Investments V;
ii) 1,23,39,051 Equity Shares aggregating to INR 584.871 crore by Matrix Partners India Investment Holdings II, LLC;
iii) 2,07,321. Equity Shares aggregating to INR 9.827 crore by Matrix Partners India Investments II Extension, LLC
iv) 61,99,367 Equity Shares aggregating to INR 293.85 crore by Norwest Venture Partners X – Mauritius; and
v)1,20,11,449 Equity Shares aggregating to INR 569.343 crore by TPG Asia VII SF Pte. Ltd.
Other Parties and Advisors to the transaction included Sidley Austin LLP (acted as international legal counsel for 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 of being trusted advisers to its clients. The Firm advises a large and diverse set of clients, including domestic and foreign commercial enterprises, financial institutions, private equity and venture capital funds, start-ups, government and regulatory bodies. The Firm generalists, specialists and senior ex-regulators expertly guide clients across a spectrum of transactions, sectors and regulations. With 1000 lawyers and 160 Partners, the Firm is the largest full-service law firm in India and offices in key business centres at Mumbai, Delhi-NCR, Bengaluru, Ahmedabad, Hyderabad, Chennai, GIFT City and also in Singapore.
The Firm recently received “Innovation in Advancing Markets” award at the FT Innovative Lawyers Asia Pacific 2022 Awards and the “National Law Firm of the Year: India” award at the IFLR Asia Pacific 2022 awards ceremony. The Firm had won “India Deal Firm of the Year” at the ALB India Awards and “Firm of the Year” at the IFLR1000 India Awards in 2021.