Five Star Business Finances shares may have a 'muted' listing today, say experts
Five Star Business Finances IPO GMP: Shares of the NBFC are available at a discount of ₹2 in grey market today
PremiumFive Star Business Finances Limited IPO: Shares of Five Star Business Finances Limited are going to hit secondary market today as Five Star Business Finances IPO listing date has been fixed on 21st November 2022. As per the information available on BSE website, effective from Monday, November 21, 2022, the equity shares of Five-Star Business Finance Limited shall be listed and admitted to dealings on BSE and NSE in the list of 'B' group of securities in Special Pre-open Session (SPOS).
Meanwhile, grey market is expecting discounted listing of Five Star Business Finances shares. According to market observers, shares of Five Star Business Finances are available at a discount of ₹2 in grey market today. This means grey market is expecting that Five Star Business Finances IPO listing would take place around ₹472 ( ₹474 - ₹2).
Like grey market, stock market experts are also not much expecting from the public issue. They too expect 'muted' listing of Five Star Business Finances shares. They said that public issue was unable to catch attention of investors, which is visible in Five Star Business Finances IPO subscription. The issue failed to get fully subscribed as it got subscribed 0.70 times in three day bidding from 9th to 11thh November 2022.
Speaking on Five Star Business Finances share listing, Abhay Doshi, Founder at UnlistedArena.com said, "When the primary market is in full swing, it is quite surprising that an issue like Five Star Business Finance struggles for subscription. Five Star Business Finance had posted decent growth, and the issue also looked priced reasonably. However, micro finance sector has underperformed since Covid outbreak lately. Looking at the response, we may expect a very silent listing and the issue may list on a flat note. Even so, a chance of a positive surprise cannot be ruled out."
Expecting 'muted to negative' listing of Five Star Business Finance shares, Parth Nyati, Founder at Tradingo said, "Among the compared peers, Five Star Business Finance Limited has the fastest gross term loan growth and a consistent track record of financial growth with increasing revenue and profit. However, high competition and rising interest rates are big threats to this. Finally, some of its peers are available at a better price in the secondary market; we are expected to have a muted to negative listing because of subscription numbers (0.70%) and the nature of the issue being OFS."
What Five Star Business Finance IPO GMP signals
According to market observers, Five Star Business Finance IPO GMP today is in discounted position. Shares of Five Star Business Finance Limited are available at a discount of ₹2 in grey market today. This means Five Star Business Finance IPO listing may take place below its issue price of ₹450 to ₹474 per equity share.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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