SK Finance Files DRHP With SEBI to Raise Rs 2,200 Crore Via IPO Route

The vehicle finance company, SK Finance Limited plans to raise Rs 2,200 crore through a public issue. The issue comprises fresh issue and offer-for-sale. The fresh issue of Rs 500 crore and remaining Rs 1,700 crore is for an offer-for-sale.

The promoters of the company are Rajendra Kumar Setia, Rajendra Kumar Setia HUF. Under the offer-for-sale Norwest Venture Partners X-Mauritius and TPG Growth IV SF PTE Ltd will offload shares worth Rs 700 crore each, Evolvence Co Invest I will divest shares to the tune of Rs 75 crore and Evolvence India Fund III Ltd will sell shares worth Rs 25 crore. Rajendra Kumar Setia and Rajendra Kumar Setia HUF will offload shares amounting to Rs 180 crore and Rs 20 crore, respectively.

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About SK Finance Limited

SK Finance Limited is a non-banking financial services company registered with the Reserve Bank of India. The company’s portfolio includes funding for used and new commercial vehicles, tractors, two-wheelers and business loans. Under MSME lending, the company lends for the working capital requirements to the small businesses. The loans are fully backed by the asset and given for the purpose of income generation to the mid and low-income groups. SK Finance’s vision is to become the most preferred customer- and employee-friendly finance company with the aim of providing last-mile coverage, including unbanked customers, by providing timely financial support with empathy, trust, and technology.

Objectives of SK Finance IPO

The company will use the funds received from the fresh issue to increase the capital base to meet future requirements. Additionally, the fund will be used to provide loans and finance vehicles.

Financials of SK Finance Limited

SK Finance reported a total income of Rs 1,314 crore and net profit of Rs 222.7 crore for the FY ending on 31 March 2023. Previously, at the same period the company reported a total income of Rs 820.6 crore and PAT of Rs 142.8 crore for the period ending on 31 March 2022. The company shows a massive jump in total income as well as in net profit.

Lead Managers and Registrar of the Issue

The book running lead managers for the SK finance initial public offer is Kotak Mahindra Capital Company Limited, Jefferies India Private Limited, Motilal Oswal Investment Advisors Limited, Nomura Financial Advisory and Securities India Private Limited. The registrar of this is Kfin Technologies Limited.

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