Shares of Five-Star business finance declined as much as 5 percent on Friday after nearly 2.5 crore shares exchanged hands in multiple large transaction.

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The 2.5 crore shares that exchanged hands amount to 8.5 percent of the company's total equity. Buyers and sellers in the deal could not be ascertained immediately.

A CNBC-TV18 exclusive on Thursday said that private equity (PE) investors are likely to sell about 8.8 percent equity in Five-Star Business Finance via a block deal.

Offer price for the sale was said to be Rs 724, which translated into a 6.4 percent discount to the stock's closing price on Thursday.

The report added that Matrix Partners, TPG Asia and Norwest Ventures may sell their stake in the lender, citing multiple people familiar with the development.

Kotak Securities Ltd and JM Financial Ltd were said to be the brokers for the deal.

After Friday’s block deal, shares of Five-Star Business Finance slumped as much as 5.6 percent to hit an intra-day low of Rs 730 apiece.

Over the past one year, the stock has gained nearly 51 percent compared with a 10.5 percent increase in the benchmark Sensex during the same period.

In July, Five-Star Business Finance had reported a 31.8 percent increase in its net profit to Rs 183.7 crore for the first quarter of this fiscal year (Q1FY24) compared with Rs 139.4 crore a year ago.

Shares of Five-Star Business Finance were trading 4.42 percent lower at Rs 739.20 apiece on BSE at 10:03 AM.