Thirty-eight years after its inception, Five Star Financial was listed on the stock exchange on Monday, November 21, albeit at a 5% discount to its IPO price of Rs 474 per share.

As a traditional non-banking financial company (NBFC) that provides guaranteed loans to SMEs, Five Star Financial is backed by well-known venture capital firms, including Sequoia Capital and Matrix Partners, private equity firms Norwest and TPG making their debuts through exits IPOs.

In an interview with Moneycontrol, CEO Rangarajan Krishnan and CFO Srikanth Gopalakrishnan said they remain confident in NBFC growth prospects despite the threat of a global recession and concerns over high-interest rates.

Krishnan detailed the company’s growth levers, including expanding its branch network, increasing the denominations of loans it offers, and strengthening its technological capabilities.

Gopalakrishnan said the company’s assets under management (AUM) are expected to rise to Rs 7,000 crore by the end of FY23 from Rs 5,300 crore at the end of the quarter June 30, 2022.

Five Star Business Finance recorded a profit of Rs 453.5 crore for the financial year ending March 2022, up from Rs 359 crore in the previous year and Rs 262 crore in FY20. As of June 30, 2022, the company’s total non-performing assets (NPA) rate was 1.12%, and the net non-performing asset rate was 0.68%.