Hot Pursuit     17-Dec-22
India Ratings assigns 'AA-' rating to debt instruments of Five-Star Business Finance
Five-Star Business Finance said that India Ratings and Research has assigned ‘IND AA-/Stable' rating on the debt instruments of the company worth Rs 2,000 crore.

India Ratings said that the rating reflects Five-Star's sizeable franchise in the southern India geography, stable and experienced management, comfortable leverage, diversified funding profile and superior profitability ratios. The rating however is constrained by the company's geographically concentrated loan book.

The agency further stated that significant growth in the scale of operations, geographical diversification, diversification of funding avenues and significant deepening of funding relationships with existing and new lenders, and a demonstrated ability to manage its asset quality could lead to a positive rating action.

However, significant deterioration in the asset quality, funding challenges and dilution of liquidity buffers, leverage (debt/equity) exceeding 3.5x on a sustained basis could lead to a rating downgrade.

Five-Star Business Finance is a Chennai-based systemically important non-bank financial institution with presence across eight states and 342 branches as on 30 September 2022. The company was also backed by marquee private equity players such as Matrix Partners, Sequoia Capital, Norwest Venture Partners, TPG, KKR & TVS Capital Funds, before becoming a listed entity in November 2022.

The NBFC reported 22.35% rise in net profit to Rs 144.18 crore on a 17.29% increase in total income to Rs 361.86 crore in Q2 FY23 over Q2 FY22.

The scrip jumped 4.27% to end at Rs 609.95 on the BSE on Friday.

Previous News
  Five-Star Business Finance standalone net profit rises 43.55% in the December 2023 quarter
 ( Results - Announcements 01-Feb-24   13:34 )
  Five-Star Business Finance standalone net profit rises 36.94% in the June 2024 quarter
 ( Results - Announcements 31-Jul-24   14:19 )
  Five-Star Business Finance to discuss results
 ( Corporate News - 21-Jan-25   17:20 )
  Five-Star Business Finance allots 8,830 equity shares under ESOS
 ( Corporate News - 13-May-24   12:08 )
  Five-Star Business Finance slides on debut
 ( Hot Pursuit - 21-Nov-22   10:20 )
  Capri Global Capital Ltd leads gainers in 'A' group
 ( Hot Pursuit - 09-Jun-25   12:00 )
  Five-Star Business Finance allots 4,390 equity shares under ESOP
 ( Corporate News - 20-Aug-24   12:39 )
  Five-Star Business Finance standalone net profit rises 38.29% in the September 2023 quarter
 ( Results - Announcements 31-Oct-23   16:59 )
  Volumes jump at Five-Star Business Finance Ltd counter
 ( Hot Pursuit - 08-Dec-23   14:30 )
  Five-Star Business Finance to convene board meeting
 ( Corporate News - 23-Apr-25   10:25 )
  Five-Star Business Finance
 ( IPO Centre - New Issue Monitor 08-Nov-22   11:41 )
Other Stories
  Waaree Renewable bags EPC order from domestic entity
  03-Jul-25   08:30
  Bharat Forge gains after acquiring AAM India manufacturing
  02-Jul-25   15:15
  NBCC (India) secures Rs 355 crore PMC contract for Gorewada Zoo Project
  02-Jul-25   15:01
  Jindal Worldwide Ltd leads losers in 'A' group
  02-Jul-25   15:00
  Sigachi Industries Ltd leads losers in 'B' group
  02-Jul-25   14:45
  Volumes spurt at Rites Ltd counter
  02-Jul-25   14:30
  Tamilnad Mercantile Bank total deposits jump 9% YoY to Rs 53,803 cr in June’25
  02-Jul-25   14:30
  United Spirits Ltd down for fifth straight session
  02-Jul-25   13:35
  Oracle Financial Services Software Ltd eases for fifth straight session
  02-Jul-25   13:35
  Dr Reddys Laboratories Ltd slips for fifth straight session
  02-Jul-25   13:35
Back Top