Five-Star Business Finance Allots 10,750 Equity Shares Under Employee Stock Option Scheme 

Chennai,͏ 5 ͏January 2026͏: Five-Star Business Finance Limited has announced that it has allotted 10,750 equity shares of the face value of ₹1 each pursuant to the exercise of the employee stock options under Five-Star Associate Stock Option Scheme 2018, as approved by its Business and Resource Committee dated January 5, 2026, as per the regulatory filings with the National Stock Exchange of India Limited and BSE Limited. 

Following the issue, the paid-up equity share capital of the company stands increased from Rs. 29,45,33,548 divided into 29,45,33,548 equity shares to ₹29,45,44,298 divided into 29,45,44,298 equity shares, and the newly issued equity shares shall be deemed to be fully paid-up equitable shares and rank pari passu with existing shares in all respects. 

Five-Star Business Finance is an NBFC that offers secured business loans predominantly to micro and small enterprises. Headquartered in Chennai͏, the company operates a branch-based model and is present in many Indian states, offering finance to the salaried and small business owners through property-backed credit solutions. 

͏Five͏-Star͏ I͏ncreases Equity ͏Base by 10,750 S͏hares, Raising Paid-Up Capital to ₹29,4͏5,͏44,2͏98 

T͏he co͏mpany c͏onfirm͏ed that, Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2018, the company’s Business & Resource Committee of the Board had allotted 10,750 Equity shares of ₹1.00 each on January 05, 2026, pursuant to the exercise of stock options under Five-Star Associate Stock Option Scheme, 2018. 

The paid-up share capital of the Company has accordingly increased from ₹29,45,33,548 consisting of 29,45,33,548 equity shares having a face value of ₹1.00 each to ₹29,45,44,298 consisting of 29,45,44,298 equity shares having a face value of ₹1.00 each. 

Further, the company confirmed that the above allotted shares shall rank pari-passu with the existing equity shares of the company. 

The company is in the process of completing the other formalities with respect to the listing of the said allotted shares. 

2018 Scheme Exercise Leads͏ to Capital C͏hange ͏W͏i͏thout Altering Share͏ Rights 

The Five-Star Associate Stock Option Scheme 2018 was instituted prior to the IPO. The Scheme has been amended in line with SBEB Regulations 2021 & approved by shareholders at their Extraordinary General Meeting held on October 8, 2021. In-principal approval has been obtained from the National Stock Exchange & Bombay Stock Exchange. The aforesaid Scheme was ratified by Shareholders at the Annual General Meeting held on September 16, 2023. 

The further stated that the exercise price per option shall be such price not being less than the face value, as may be determined by the Nomination & Remuneration Committee. Provided that the exercise price shall comply with the accounting standards specified under the SEBI SBEB & SE Regulations, including any ‘Guidance Note on Accounting for employee share-based Payments’ issued in that regard from time to time. 

The exercise period shall commence from the date of vesting and expire not later than 60 days from the relevant vesting date 

Earnings Per Share After Allotment Remain Largely Unchanged at ͏₹1͏8.7͏6 Basic and ₹18.71 Diluted 

As per the unaudited financial results for the half year ended 30 September 2025, the basic earnings per share of Five-Star Business Finance were ₹18.76, and its diluted earnings per share were ₹18.71, taking into account the impact of the additional equity issued on exercise of employee stock options. The company clarified that the allotment is not a related party transaction and that the transactions relating to the allotment are not of interest to the promoter or promoter group entity. 

Five-Star Business Finance Limited Share Price Decline 0.41% on the NSE 

At 3:12 p͏m͏ I͏ST, on the NSE, Five-Star Busi͏ness Finance Limited share price was trading at ₹530.05, down ₹2.20͏ or 0.͏41%. The stock opened at ₹͏528.15 and moved between a hi͏gh ͏of ͏₹53͏4.95͏ a͏nd͏ a low of ₹526.50 during t͏he session. The company’s mar͏ket capitalis͏ation stood at ₹15.61k cr͏ore, with a P/E of 14.10. The stock remains below it͏s 52-w͏eek high of ₹850.00 ͏and above ͏its͏ 52-week low of ₹501.00, ͏while it offers a dividend yield of 0.38% was indicated today. 

References 

• https://www.bseindia.com/stock-share-price/five-star-business-finance-ltd/fivestar/543663/corp-announcements/ 
• https://www.bseindia.com/xml-data/corpfiling/AttachLive/2a00f718-a7b4-4c2a-b3cc-981b48855c94.pdf 
• https://www.nseindia.com/get-quote/equity/FIVESTAR/Five-Star-Business-Finance-Limited 

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