ICRA

The Pink city-headquartered vehicle finance and business loans-focused non-bank lender SK Finance has filed preliminary papers with capital markets regulator Sebi to raise Rs 2,200 crore through an initial share sale.
The proposed initial public offer (IPO) is a combination of a fresh issue of equity shares worth Rs 500 crore and an offer for sale (OFS) of up to Rs 1,700 crore by promoters and investor shareholders, according to the draft red herring prospectus (DRHP) filed last week.

SK Finance files draft papers with Sebi to raise ₹2,200cr via IPO

Net profit of SK Finance rose 97.95% to Rs 83.00 crore in the quarter ended December 2023 as against Rs 41.93 crore during the previous quarter ended December 2022. Sales rose 37.79% to Rs 454.89 crore in the quarter ended December 2023 as against Rs 330.14 crore during the previous quarter ended December 2022.

SK Finance standalone net profit rises 97.95% in the December 2023 quarter

Geographically, Rajasthan accounts for 56 percent of the portfolio while MP contributes 13.63 percent and Gujarat with 11.87 percent. However, the company has been diversifying in other states like  Maharashtra, Haryana, Punjab and Chhattisgarh

As the company is majorly into financing used vehicles, the class of borrowers in the segment are susceptible to any negative impact on the economy.


The issuer has made timely interest payments.

Rajendra Kumar Setia, Managing Director &CEO

SKFL has a track record of more than 29 years in the vehicle financing segment with significant presence in the state of Rajasthan.Mr. Rajendra Kumar Setia has vast experience of more than two decades in the finance sector mainly vehicle financing

The Company is promoted by Mr. Rajendra Setia who holds 38.18 % and is backed by private equity players , these players together hold 60.32 percent of equity shareholding as on March 31, 2023.. Out of which, Rs. 150 Cr was raised on December 31, 2021 by three new investors and Rs. 337 Cr was infused in May 2021 by existing investors and promoters. 

The resource raising ability of the company along with prudent risk management practices and stringent credit assessment procedures adopted by the company. The underwriting procedure of SKFL is separate for both segments i.e. Vehicle and MSME. 


Considering the segment of operations and customer profile, SKFL accrues higher lending yields. The lending yield has been in the range of 20-23 percent over the past three years.


Security Name: 9.25% SK Finance Limited 09 May 2027

ISIN:

INE124N07697

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SK Finance Limited

Recent News

SK Finance files draft papers with Sebi to raise ₹2,200cr via IPO

SK Finance standalone net profit rises 97.95% in the December 2023 quarter

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