TPG, Peak XV Sell Five-Star Stake for Rs 3,336 Crore

New Delhi, Sep 26 (PTI) US-based TPG, Peak XV Partners and Norwest Venture Partners on Thursday divested a 14.24 per cent stake in Five-Star Business Finance to investors like Goldman Sachs, Nomura, Morgan Stanley, IMF and Fidelity for Rs 3,336 crore through open market transactions.

Private equity firms TPG through its arm TPG Asia VII SF, Peak XV Partners through its affiliate Peak XV Partners Investments V and Norwest Venture Partners via its Mauritius arm offloaded over 4.16 crore shares or 14.24 per cent stake in Five-Star Business Finance through separate block deals on the BSE and NSE.

As per the data on the BSE and NSE, TPG sold more than 2.71 crore shares on BSE and NSE in two tranches or 9.28 per cent stake in non-banking finance company (NBFC) Five-Star Business Finance.

Additionally, Norwest Venture Partners X Mauritius offloaded 80.46 lakh shares, amounting to a 2.75 per cent stake in Chennai-based Five-Star Business Finance on the BSE.

Peak XV Partners, one of the promoters of Five-Star Business Finance, also disposed of 64.93 lakh shares or 2.22 per cent stake in the NBFC firm on the NSE.

The shares were sold by the three entities at an average price of Rs 800.50 apiece, taking the combined transaction value to Rs 3,335.91 crore, the data showed with the BSE and National Stock Exchange (NSE).

After the latest transaction, TPG exited Five-Star Business Finance by selling a 9.28 per cent stake in the firm, while Peak XV Partners, Peak XV Partners (formerly Sequoia Capital India & SEA), holding has come down to 4.03 per cent from 6.25 per cent.

As of the June quarter ending, Peak XV Partners Growth Investment II and Sequoia Capital Global Growth Fund III-Endurance, two public shareholders of Five-Star Business, held 3.77 per cent and 3.47 per cent holding in the company, respectively.

These entities are affiliates of US-based venture capital company Sequoia Capital.

Meanwhile, Invesco Mutual Fund (MF), HDFC MF, SBI Life Insurance, Max New York Life Insurance, Societe Generale, Prudential Plc, Morgan Stanley and Copenhagen-based financial services firm Danske Capital were among the entities who acquired Five-Star Business' shares on the BSE.

On the other hand, the Saudi Arabian Monetary Authority, International Monetary Fund (IMF), International Bank for Reconstruction and Development, Fidelity, Nord Est Asset Management SA, TT International Asset Management, Commercial banking company Helaba and Sydney-headquartered superannuation fund Aware Super were the entities who picked up stakes in Five-Star Business on the NSE.

On Wednesday, Goldman Sachs bought 5.52 lakh shares of Five-Star Business Finance for over Rs 45 crore on the BSE.

Shares of Five-Star Business Finance fell 1.47 per cent to close at Rs 796.10 apiece on the NSE and the scrip of the company slipped 1.39 per cent to end at Rs 797.20 per piece on the BSE.