Five-Star Business Finance Reports Nil Deviation in Funds Utilized from Preferential Share Warrant Issue
Five-Star Business Finance Limited has confirmed zero deviation or variation regarding the utilization of proceeds from its preferential issue of share warrants, as reported for the quarter ended June 30, 2026. The company provided details concerning the raising and subsequent utilization of funds related to the warrants allotment and their conversion into equity shares.The company had initially issued a total of 4,10,000 convertible share warrants in the tranche of INR 770/- each. The total issue size amounted to INR 31,57,00,000.
Funds were raised across two tranches. The initial allotment involved the collection of upfront consideration, while the balance was secured upon the conversion of a portion of the warrants.
Key details regarding the fund raising are summarized below:
| Fund Raising Aspect | Detail |
|---|---|
| Mode of Fund Raising | Preferential Issue of Share Warrants |
| Total Issue Size | INR 31,57,00,000 (Indian Rupees Thirty-One Crore Fifty-Seven Lakh only) |
| Allotment Date | October 24, 2024 |
| Conversion Event | March 24, 2026 |
Full Utilization Confirmed for Proceeds
The company confirmed that the upfront consideration amount of INR 7,89,25,000, received on October 24, 2024, towards the allotment of 4,10,000 share warrants, has been fully utilized by Five-Star Business Finance Limited for the intended purposes.
Furthermore, the balance consideration of INR 17,90,25,000 was received on March 24, 2026, coinciding with the conversion of 3,10,000 share warrants into equity shares. This amount has also been fully utilized by the company for the purposes for which it was raised.
The report also noted that a balance of 1,00,000 option remained unexercised as warrant holders failed to exercise the option within the stipulated timeline.
FIVESTAR Stock Price Movement
On Friday, shares of Five-Star Business Finance Limited edged higher in the market, closing at ₹535.2 after gaining 0.19%. The stock was traded on a volume of 495,386 shares during the session, hitting a high of ₹538 and finding a low near ₹520.5.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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