Peak XV, TPG Asia and Matrix Partners sell partial stake in Five Star Business Finance worth ₹1,656 crore | Mint
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Business News/ Markets / Stock Markets/  Peak XV, TPG Asia and Matrix Partners sell partial stake in Five Star Business Finance worth 1,656 crore
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Peak XV, TPG Asia and Matrix Partners sell partial stake in Five Star Business Finance worth ₹1,656 crore

TPG Capital, via its affiliate TPG Asia VII SF Pte, divested 89,07,493 shares of Five-Star Business, representing a 3.05% stake, at a rate of ₹730 per share.

Five Star. Image: LinkedinPremium
Five Star. Image: Linkedin

Three prominent global funds, namely Peak XV Partners (formerly known as Sequoia Capital), TPG Asia, and Matrix Partners, divested partial stakes in Five-Star Business Finance on Friday. The cumulative value of these transactions through bulk deals amounted to 1,656 crore.

TPG Capital, via its affiliate TPG Asia VII SF Pte, divested 89,07,493 shares of Five-Star Business, representing a 3.05% stake, at a rate of 730 per share. This transaction amounted to approximately 650 crore, as per bulk deals data on the National Stock Exchange. 

As of the end of September, the international private equity fund maintained a 14.29% stake in the non-banking financial company (NBFC).

Peak XV Partners Investments divested 45,67,945 shares, equivalent to a 1.6% stake, amounting to approximately 333 crore. As of the end of September, Sequoia retained a 7.26% stake in the company.

Matrix Partners, a constituent of the promoter group, divested 92,13,440 shares, equivalent to a 3.2% stake, for approximately 673 crore. As of the end of September, Matrix Partners retained a 4.75% ownership stake in Five-Star Business Finance.

In September, Matrix Partners had divested a 3% stake in the company for approximately 650 crore. Recent reports on Thursday indicated that these global firms are contemplating the sale of a partial stake in the non-bank lender through the open market on Friday.

The open market sale instigated a selling spree in the stock, resulting in a nearly 3% decline on the National Stock Exchange, closing at 735.15. Over the past six months, the stock has registered an impressive growth of more than 26%.

In the quarter concluding in September, the company disclosed a remarkable year-on-year (YoY) surge, with net profit soaring over 38% to reach 199 crore. Simultaneously, interest income exhibited robust growth, escalating by 41% to 504 crore.

During the quarter ending in September, both mutual funds and Foreign Portfolio Investors (FPIs) substantially increased their ownership in the company in a sequential manner.

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Published: 08 Dec 2023, 09:58 PM IST
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