The Jaipur-based lender had filed its preliminary papers with the capital markets regulator in Might this 12 months.
In response to the draft papers, the preliminary public providing (IPO) of SK Finance is a mixture of a contemporary concern of fairness shares value Rs 500 crore and a proposal on the market (OFS) of as much as Rs 1,700 crore by promoters and investor shareholders.
As a part of the OFS, Norwest Enterprise Companions X-Mauritius and TPG Development IV SF PTE Ltd will offload shares value Rs 700 crore every, whereas Evolvence Coinvest I’ll divest shares to the tune of Rs 75 crore and Evolvence India Fund III Ltd will promote shares value Rs 25 crore.
Moreover, promoters – Rajendra Kumar Setia and Rajendra Kumar Setia HUF – will offload shares aggregating to Rs 180 crore and Rs 20 crore, respectively, in accordance with the draft crimson herring prospectus (DRHP). SK Finance plans to utilise proceeds from the contemporary concern for augmenting the capital base to fulfill future enterprise necessities of the corporate in the direction of onward lending and for common company functions. The NBFC has been working in two verticals — automobile financing and financing for Micro, Small and Medium Enterprises (MSMEs). It has a presence throughout 11 states and one Union Territory via 535 branches as of December 2023. In response to a Crisil report, the general automobile financing phase in India stood at round Rs 11.85 lakh crore as of fiscal 2023, marking a compound annual development price (CAGR) of round 11 per cent from fiscal 2019. Going ahead, the report stated, the excellent credit score is anticipated to develop at a CAGR of 16-18 per cent from fiscal 2023 to fiscal 2027 to succeed in Rs 21 lakh crore.
Earlier this 12 months, SK Finance had raised Rs 1,328 crore from traders. Motilal Oswal Personal Fairness pumped in Rs 415 crore for a minority stake within the NBFC.
Kotak Mahindra Capital Firm Ltd, Jefferies India Personal Ltd, Motilal Oswal Funding Advisors Ltd and Nomura Monetary Advisory and Securities (India) Personal Ltd are the book-running lead managers to the difficulty.
The fairness shares of the corporate are proposed to be listed on the NSE and BSE.
