SK Finance Ltd. IPO Details
SK Finance was incorporated on November 21, 1994. It is a non-deposit taking, middle-layer non-banking finance company that operates in two verticals: vehicle financing and financing for micro, small, and medium enterprises
| Bidding Dates |
|---|
| To Be Announced |
| Minimum Investment | Minimum Lot | Maximum Lot | Lot Size | Number of Shares | Issue Price Band | Post Issue Promoter Holding % | Issue Size | IPO Document |
|---|---|---|---|---|---|---|---|---|
| - | - | - | - | 0 | - | - | ₹22,000.0 M | DRHP DOC |
SK Finance Ltd. issue details
SK Finance Ltd. IPO issue size is ₹ 22,000.0 M
| Day | Retail Individual Investor | HNI (NII) Investors | Qualified Institutional Buyers |
|---|---|---|---|
| Category Reservation | 35% | 15% | 50% |
SK Finance Ltd. IMPORTANT IPO DATES
| Issue Open Date | - |
| Issue close Date | - |
| Allotment Date | - |
| Refund Date | - |
| Demat Account Credit Date | - |
| Listing Date | - |
| Listing on Exchange(s) | NSE and BSE |
SK Finance Ltd. NUMBER OF SHARES ON OFFER
SK Finance Ltd. FINANCIALS
| Period | Net Profit (Rs in millions) | Interest Income (Rs in millions) | Cash Flow from Operations (Rs in millions) | Free Cash Flow (Rs in millions) |
| 9MFY24 (II) | 2,171.0 | 11,702.7 | -14,836.8 | -15,355.5 |
| 9MFY23 | 1,388.8 | 8,608.3 | -17,977.7 | -18,383.1 |
| FY23 | 2,227.9 | 12,105.2 | -22,434.0 | -23,139.8 |
| FY22 | 1,428.7 | 7,722.6 | -12,281.5 | -12,892.3 |
| FY21 | 910.8 | 6,380.9 | -3,706.5 | -3,948.8 |
SK Finance Ltd. INFORMATION ON IPO ISSUE
About SK Finance Ltd.
SK Finance was incorporated on November 21, 1994. It is a non-deposit taking, middle-layer non-banking finance company that operates in two verticals: vehicle financing and financing for micro, small, and medium enterprises
Object of the Issue
- Augmenting the capital base to meet future business requirements of the company towards onward lending
- General corporate purposes
SK Finance Ltd. - PROMOTERS
| Name |
|---|
| Rajendra Kumar Setia |
| Yash Setia |
| Rajendra Kumar Setia HUF |
SK Finance Ltd. Strengths
Fast growing
According to the CRISIL Report, the company is the fastest-growing player in the vehicle and MSME finance segment among the peers analyzed, with a growing presence in the underpenetrated used CVs and MSME financing segment
Deep sales network
The company has a deep sales network, enabling access to a large demography of customers in the rural and semi-urban areas of India, supported by a mix of direct and indirect sourcing channels
Diversified sources of funding
As of December 31, 2023, the company has accessed funds from 61 lenders, including nine public-sector banks, 25 private banks, four mutual funds, and 23 financial institutions
SK Finance Ltd. Risks
Highly dependent on one segment
The company's business is primarily focused on used vehicle financing, and any adverse development in this sector or in government policies affecting this industry could affect the business, cash flows, and results of operations
Negative cash flows
The company has had negative cash flows in the past and may continue to have negative cash flows in the future
Increasingly competitive industry
The company operates in an increasingly competitive financial services industry, which creates significant pricing pressures and may adversely affect the net interest margins, income, and market share. Furthermore, its growth depends on the ability to compete effectively in this competitive environment
IPO FAQs
The promoters of the company are Rajendra Kumar Setia, Yash Setia and Rajendra Kumar Setia HUF.
The category allocation of qualified institutional buyers is 50.0%, the category allocation of non individual investors or high networth individuals is 15.0% and for retail investors it is 35.0%.