Five-Star Business Finance Limited has announced the allotment of 10,750 equity shares on January 05, 2026, following the exercise of employee stock options under its Five-Star Associate Stock Option Scheme, 2018. The Business & Resource Committee of the Board approved this allotment in compliance with SEBI regulations.

Share Capital Enhancement

The allotment has resulted in an increase in the company's paid-up share capital, as detailed below:

The newly allotted shares will rank pari-passu with the existing equity shares of the company, ensuring equal rights and privileges for all shareholders.

Exercise Price Structure

The stock options were exercised at different price points, generating total proceeds of ₹11,90,398 for the company:

The exercise price structure reflects the pricing formula determined by the Nomination & Remuneration Committee, ensuring compliance with SEBI SBEB regulations and accounting standards.

Employee Stock Option Scheme Details

The Five-Star Associate Stock Option Scheme 2018 was instituted prior to the company's IPO and has been subsequently amended to align with SEBI (Share Based Employee Benefits) Regulations, 2021. Key features of the scheme include:

• Approval Process: Approved by shareholders at the Extra-ordinary General Meeting held on October 8, 2021
• Ratification: Ratified by shareholders at the Annual General Meeting on September 16, 2023
• Exchange Approval: In-principle approval obtained from both NSE and BSE
• Exercise Period: Options can be exercised within 60 calendar months from the relevant vesting date

Financial Impact and EPS

As per the company's unaudited financial results for the half-year ended September 30, 2025, the earnings per share metrics stand at:

The company is currently completing the necessary formalities with stock exchanges for the listing of the newly allotted shares, ensuring full compliance with regulatory requirements.

US-based investment firm Wasatch Advisors LP has reduced its shareholding in Five-Star Business Finance Ltd through the disposal of equity shares via open market transactions. The transaction, completed on December 26, 2025, involved the sale of 63,741 shares, representing a 0.03% reduction in the firm's stake in the non-banking financial company.

Transaction Details

The share disposal transaction resulted in Wasatch Advisors LP's holding decreasing from 21,370,772 shares to 21,307,031 shares. This represents a reduction in shareholding percentage from 7.26% to 7.23% of Five-Star Business Finance's total voting capital.

Regulatory Compliance

The disclosure was made under Regulation 29(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. Dan Thurber, Vice President and General Counsel at Wasatch Advisors LP, signed the disclosure on behalf of the firm from their Salt Lake City office. The filing confirms that Wasatch Advisors LP does not belong to the promoter or promoter group of Five-Star Business Finance.

Company Share Capital Structure

Five-Star Business Finance Ltd maintains its equity share capital at ₹29.45 crores, based on a par value of ₹1.00 per share and total issued shares of 294,533,548. The company's shares are listed on both BSE (scrip code: 543663) and NSE (scrip code: FIVESTAR), providing liquidity for such institutional transactions.

The transaction reflects routine portfolio management activities by the institutional investor, with the disposal conducted through regular market mechanisms without any off-market or preferential arrangements.