SK Finance Limited IPO Details

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 Established in 1994, SK Finance is a non-deposit taking NBFC that have distribution network across parts of India. The company operated in two verticals; vehicle financing and financing for MSME. As per the report by CRISIL, SK Finance is the fastest growing player in the vehicle financing and MSME financing segments among its peers.

The company offers secured, granular, and retail loans for financing used and new commercial vehicles, cars, tractors, and new two-wheelers. For the nine months ended December 31, 2023, SK FINANCE had the highest used vehicle finance share of 77.41%. SK FINANCE started its MSME lending business in late 2016, offering loans for working capital requirements to mid to low-income customers, primarily self-employed, unbanked individuals in rural and semi-urban areas of India.


SK Finance Limited IPO Objectives

SK Finance IPO offer comprises of a fresh issue and offer for sale by existing shareholders.

  • The selling shareholders would be pairing stake amounting to Rs. 1700 crores.

SK Finance Limited IPO Issue Price & Size

SK Finance Limited IPO issue price is not yet known as the issue date and other details not declared by the company. As of date, only the total issue size of the offer is available, which is Rs. 500 crores of fresh issue and Rs 1700 crores of offer for sale.

SK Finance Limited IPO Launch Date

As of date, only the DRHP has been filed with the SEBI, so no tentative dates has been officially announced by the company through RHP. Once the company files the RHP document, all the necessary dates and price band will be updated.

SK Finance Limited IPO Promoters & Shareholding of the Company

There are three promoters of the company

  1. Rajendra Kumar Setia (Promoter, MD and CEO)
  2. Yash Setia (Promoter and Director)
  3. Rajendra Kumar Setia HUF.

As per the DRHP, Promoters in total holds 32.26% of the paid-up equity share capital of Company.

Why Invest in SK Finance Limited IPO?

Fastest growing player in the vehicle financing segment

As per facts mentioned in DRHP, SK Fin is the fastest-growing player in the vehicle financing segment. As of Dec 31, 2023, the company had active loan accounts of 330,591 and its vehicle financing vertical account for 78.03% of its total AUM.

Deep sales network

The company has an established brand presence primarily in rural and semi-urban India, and have been growing their footprints to service customers primarily form that segment. As of FY23, semi-urban and rural regions accounted for approx. 29% and 24% share of the overall vehicle financing credit in India. The company as of Dec 31, 2023 has 535 branches across parts of India.

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