Five Star Business approves ₹4,000-crore fundraise via NCDs on private placement basis

Non-banking finance company Five-Star Business Finance Limited on Wednesday (September 10) informed that its shareholders have approved the issuance of non-convertible debentures (NCDs) worth up to ₹4,000 crore through private placement.

The debentures may be issued in one or more tranches or series over time, with specific details such as allotment date, maturity, interest rates, and charges to be disclosed at the time of allotment.

"...we hereby inform that the shareholders of the Company at the 41st Annual General Meeting (AGM) held on Tuesday, September 09, 2025, has inter-alia, considered and approved the issuance of Non-Convertible Debentures (NCDs) aggregating up to ₹4,000 crore through private placement, in one or more tranches and/or series from time to time," according to a stock exchange filing.

Also Read: Five-Star Business Finance shares fall 18% in two sessions after AUM growth guidance cut

Established in 1984, Five Star Business Finance focused on consumer loans and vehicle finance. The NBFC changed its business approach in 2005 towards small business lending in urban, semi-urban markets and rural areas with growth potential. The Chennai-based firm is backed by investors like TPG, Matrix Partners, Norwest Ventures, Sequoia, and KKR.

The NBFC provides secured business loans to micro-entrepreneurs and self-employed individuals, the two segments of borrowers largely excluded by traditional financing institutions. It has a strong presence in South India, and all loans are secured by the borrowers' property, predominantly being self-occupied residential properties.

Shares of Five-Star Business Finance Ltd ended at ₹535.95, up by ₹5.40 or 1.02%, on the BSE today, September 10.

Also Read: Five-Star Business Finance Block Deal: 11% equity worth ₹1976.4 crore changes hands