SK Finance IPO Date, Review, Price and Key Information

SK Finance Limited IPO is fully book build issue and total IPO size is ₹2200 crores. The offering includes a fresh issue worth ₹500 crores and an offer for sale of ₹1700 crores.

The dates for the SK Finance IPO have not been announced yet.

The allotment process is expected to be finalized by [.]. The SK Finance IPO is scheduled to list on BSE, NSE, with a tentative listing date of [.].

The price band for the SK Finance IPO has not been announced yet.

Registrar for this IPO is KFin Technologies Limited and lead managers for SK Finance IPO are Kotak Mahindra Capital Company Limited, Jefferies India Private Limited, Motilal Oswal Investment Advisors Limited, Nomura Financial Advisory and Securities (India) Private Limited.

IPO Schedule

IPO Open Date	-
IPO Close Date	-
IPO Allotment Date	-
Refund Initiation	-
Share credit in Demat	-
Listing Date	-

Key Details

Price Band	TBA
Lot Size	TBA
Face Value	₹1 Per Equity Share
Total Issue Size	₹2,200.00 Crores
Fresh Issue	₹500.00 Crores
OFS Issue	₹1,700.00 Crores
Issue Type	Fresh Issue and Offer for Sale
Listing At	BSE, NSE

Share Reservation

Investor Category	Shares Offered
QIB	50%
Retail	35%
NII/HNI	15%

About SK Finance Limited Company

SK Finance: Overview

Established in 1994, SK Finance is a non-deposit taking NBFC, operating in vehicle and MSME financing. The CRISIL Report identifies SK Finance as the fastest-growing player in both segments among analyzed peers, based on AUM CAGR between Fiscal 2021 and 2023.

In vehicle financing, SK Finance focuses on used and new commercial vehicles (excluding medium and heavy), cars, tractors and new two-wheelers, with used vehicle financing comprising 77.41% of the portfolio as of December 31, 2023. The MSME financing segment, started in late 2016, provides working capital loans fully backed by assets to low-income, self-employed individuals in rural and semi-urban areas.

With over 25 years of experience, the company has developed a robust underwriting process built on income, intent, and insurance. As of December 31, 2023, SK Finance operates through 535 branches across 11 states and one union territory. Of these, 322 branches offer MSME loans. As of Fiscal year 2023, SK Finance Limited had lowest restructured assets pool of 0.27% of AUM as of Fiscal 2023 among peers considered for analysis

SK Finance Limited Financial Details

Particulars	December 31, 2023	March 31, 2023	March 31, 2022	March 31, 2021
Total Revenue	1308.72	1302.77	814.38	672.86
Profit After Tax	217.10	222.79	142.87	91.08
Cash & Cash Equivalents	703.88	757.49	174.56	233.32
Net Worth	2732.21	1831.93	1593.02	969.19
Return on Equity (%)	12.66%	12.99%	11.13%	9.85%

₹ In Crore

Key Performance Indicator

Basic EPS (in ₹)	Return on Net Worth (RoNW)	Net Asset Value (NAV)	Debt-Equity Ratio	Return on Equity (ROE)	Return on Capital Employed (ROCE)
19.13	13.01%	155.53

Offer Objectives

This document outlines the Offer Objects, including details of shareholder equity, ESOP schemes, and the utilization of net proceeds from the fresh issue.

Shareholder Equity: The document lists shareholders holding significant portions of equity. As of the date of the Draft Red Herring Prospectus, key shareholders include Rajendra Kumar Setia (38.20%), Norwest (24.19%), and TPG (18.71%). These shareholders represent a significant portion of the pre-offer equity.

ESOP 2018: The company implemented the ESOP 2018 scheme, which has been amended several times since its inception in 2018. As of the document's date, 4,426,400 options have been granted, with 2,085,218 vested and 1,572,056 exercised. The exercise price range has varied between ₹62.34 and ₹300, adjusted for share subdivisions and bonus issues.

Fresh Issue and Net Proceeds: The company intends to utilize the net proceeds from the fresh issue primarily to augment its capital base for future business requirements, specifically onward lending. An estimated ₹3,750 million (₹375 crore) is allocated for this purpose. A portion is also earmarked for general corporate purposes, not exceeding 25% of the gross proceeds.

The proposed implementation schedule estimates the deployment of the net proceeds in Fiscal 2025, with ₹3,750 million (₹375 crore) allocated for augmenting the capital base.