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Five Star Business Finance Block Deal: ₹2,034.60 Crore Stake Sold, Peak XV and Other PE Investors Exit – Why?

Five Star Business Finance Block Deal: An 11.20% stake in Five Star Business Finance was sold for Rs 2,034.60 crore, causing a slight share price drop.
Five Star Business Finance Block Deal: ₹2,034.60 Crore Stake Sold, Peak XV and Other PE Investors Exit - Why?

On September 26, Five Star Business Finance saw an 11.20 percent stake sold through block deals amounting to Rs 2,034.60 crore. Peak XV and other private equity investors were likely the sellers in this transaction, with around 3.30 crore shares exchanging hands at a floor price of Rs 809 each, reflecting a slight discount from the previous closing price..

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The announcement of these block deals triggered a quick response in the market, leading to a marginal decline in the company’s shares at the start of trading. By 09:20 AM, Five Star Business Finance’s stock was down 0.6 percent, trading at Rs 803 on the National Stock Exchange (NSE).

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According to exchange data, Peak XV Partners held a 6.25 percent stake in the company as of the end of the June quarter. This indicates that the firm had significant involvement in the company before the recent stake sale.

Earlier in December 2023, several investors, including TPG Asia VII SF Pte, Matrix Partners India Investment Holdings II LLC, and Peak XV Partners Investments V, sold Five Star Business Finance shares through open market deals, raising Rs 1,656 crore.

In September 2023, other entities, such as Norwest Venture Partners X Mauritius and Matrix Partners, had already offloaded 2.55 crore shares of Five Star Business Finance, generating Rs 1,863 crore.

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