Vehicle financier SK Finance files DRHP for Rs 2,200 crore IPO
Under the OFS, Rajendra Kumar Setia, Rajendra Kumar Setia HUF, Evolvence Coinvest I, Evolvence India Fund III Ltd, Norwest Venture Partners X – Mauritius, TPG Growth IV SF among others will offload shares.
The company proposes to utilise the net proceeds from the fresh issue towards augmenting the capital base to meet future business requirements of the company towards onward lending and general corporate purposes.
SK Finance is a non-deposit non-banking finance company and has been operating in two verticals — vehicle financing and financing for MSME companies.
As of December 2023, the company has a presence across 11 states and one union territory through 535 branches. Under the vehicle financing vertical, it primarily offers a secured, granular, and retail loan portfolio for financing used and new commercial vehicles, cars, and tractors as well as new two-wheelers.
Under the MSME lending vertical, the company primarily lends for the working capital requirements of these businesses. These loans are fully backed by assets and are offered, primarily for income generation purposes, to the mid to low-income category of customers that are predominantly self-employed, unbanked, or underbanked individuals in the rural and semi-urban areas of India with limited access to organized lending channels.
The overall vehicle financing segment in India stood at approximately Rs 11.85 lakh crore as of FY23, witnessing a CAGR of around 11.07% from FY19, and going forward, the outstanding credit is expected to grow at a CAGR
