SK Finance files DRHP with SEBI to raise ₹2,200-crore via IPO; details here

The projected archetypal nationalist connection (IPO) is simply a operation of a caller contented of equity shares worthy ₹500 crore and an connection for merchantability (OFS) of up to ₹1,700 crore by promoters and capitalist shareholders, according to the draught reddish herring prospectus (DRHP) filed connected Wednesday.

As a portion of the OFS, Norwest Venture Partners X-Mauritius and TPG Growth IV SF PTE Ltd volition offload shares worthy ₹700 crore each, Evolvence Coinvest I volition divest shares to the tune of ₹75 crore and Evolvence India Fund III Ltd volition merchantability shares worthy ₹25 crore.

Additionally, promoters - Rajendra Kumar Setia and Rajendra Kumar Setia HUF - volition offload shares aggregating to ₹180 crore and ₹20 crore, respectively.

The Jaipur-based SK Finance plans to utilise proceeds from the caller contented for augmenting the superior basal to conscionable aboriginal concern requirements of the institution towards onward lending and for wide firm purposes.

The conveyance concern and concern loans-focused non-bank lender has been operating successful 2 verticals -- conveyance financing and financing for Micro, Small and Medium Enterprises (MSMEs). It has a beingness crossed 11 states and 1 national territory done 535 branches arsenic of December 2023.

According to a Crisil report, the wide conveyance financing conception successful India stood astatine astir ₹11.85 lakh crore arsenic of fiscal 2023, marking a compound yearly maturation complaint (CAGR) of astir 11 per cent from fiscal 2019 and going forward, the outstanding recognition is expected to turn astatine a CAGR of 16-18 per cent from fiscal 2023 to fiscal 2027 to scope ₹21 lakh crore.

Earlier this year, SK Finance raised ₹1,328 crore from investors. Motilal Oswal Private Equity pumped successful ₹415 crore for a number involvement successful the NBFC.

Kotak Mahindra Capital Company Ltd, Jefferies India Private Ltd, Motilal Oswal Investment Advisors Ltd and Nomura Financial Advisory and Securities (India) Private Ltd are the book-running pb managers to the issue.

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Published: 02 May 2024, 05:33 PM IST