SK Finance Limited Files DRHP With SEBI For IPO: Key Points To Note

SK Finance Limited is a non-deposit taking non-banking finance company middle layer registered with the Reserve Bank of India.

New Delhi: Vehicle financing company SK Finance Limited has filed Draft Red Herring Prospectus (DRHP) with SEBI for an Initial Public Offering (IPO). The company plans to raise funds through initial public offering of equity shares (face value of Rs. 1 each) aggregating up to Rs 2,200 crores.

Here Are Key Points You Want To Know About SK Finance Limited Upcoming IPO

1. The Promoters of the Company are Rajendra Kumar Setia, Yash Setia and Rajendra Kumar Setia HUF.

2. The offer comprises of a fresh issue of equity shares of up to Rs. 500 crores offer for sale (OFS) of up to Rs. 1700 crores by the “Selling Shareholder” with face value of Rs. 1 each equity share. 

3. The offer for sale comprises of equity shares aggregating up to Rs. 180 crores by Rajendra Kumar Setia, up to Rs. 20 crores by Rajendra Kumar Setia HUF , up to Rs. 75 crores by Evolvence Coinvest I, up to Rs. 25 crores by Evolvence India Fund III Ltd, up to Rs. 700 crores by Norwest Venture Partners X – Mauritius and up to Rs. 700 crores by TPG Growth IV SF PTE. Ltd. 

4. 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.

5. Kotak Mahindra Capital Company Limited, Jefferies India Private Limited, Motilal Oswal Investment Advisors Limited and Nomura Financial Advisory and Securities (India) Private Limited are the Book Running Lead Managers to the issue.

6. Established in 1994, the company has been operating in two verticals, vehicle financing and financing for Micro, Small and Medium Enterprises, As of December 31, 2023 the company has a presence across 11 states and 1 union territory through 535 branches.