The decision to raise these funds highlights the company’s focus on strengthening its liquidity position to support further lending activities. The NCDs are intended to be issued to various institutional investors and high-net-worth individuals, providing a robust capital buffer for the company’s expansion plans. This follows a previous approval in late 2025 for a ₹4,000 crore limit, indicating an escalation in the company’s financing requirements to meet growing credit demand in its niche market.

Incorporated in 1984 and based in Chennai, Five-Star Business Finance Limited is a Systemically Important Non-Deposit taking Non-Banking Financial Company (NBFC-ND-SI). The company specializes in providing secured business loans and small mortgage loans to micro-entrepreneurs and self-employed individuals who are often underserved by traditional banking institutions. In early 2025, the company reported reaching a significant milestone with over 800 branches and a loan portfolio exceeding ₹12,800 Crores. Recent updates from 2025 indicate a strategic shift toward tighter underwriting and a dedicated collection vertical to maintain asset quality amid regional credit shifts.

For the most recent quarterly financial results (Q3 FY2026) announced in January 2026, the company reported a revenue of ₹815.07 Crores, representing a 12.06% growth compared to the corresponding quarter of the previous year. The Net Profit for the quarter stood at ₹277.03 Crores, showing a marginal year-on-year increase of 1.16%. The company maintains a strong investor base, with major institutional holders including Foreign Institutional Investors (FIIs) who hold approximately 52.95% of the shares. Notable investors include Sirius II Pte. Ltd., which holds a stake of approximately 5.97% as of early 2026.