The company plans to diagram shut about Rs 2,200 crore thru the public provide, which contains a new equity sale of Rs 500 crore and an provide for sale (OFS) of Rs 1,700 crore.
Underneath the OFS, Rajendra Kumar Setia, Rajendra Kumar Setia HUF, Evolvence Coinvest I, Evolvence India Fund III Ltd, Norwest Endeavor Partners X – Mauritius, TPG Enhance IV SF amongst others will offload shares.
The company proposes to utilise the web proceeds from the brand new self-discipline in direction of augmenting the capital scandalous to satisfy future alternate necessities of the company in direction of onward lending and overall corporate purposes.
SK Finance is a non-deposit non-banking finance company and has been working in two verticals -- automotive financing and financing for MSME corporations.
As of December 2023, the company has a presence all over 11 states and one union territory thru 535 branches. Underneath the automotive financing vertical, it basically presents a secured, granular, and retail loan portfolio for financing broken-down and unique industrial autos, automobiles, and tractors as effectively as unique two-wheelers.
Underneath the MSME lending vertical, the company basically lends for the working capital necessities of those companies. These loans are entirely backed by assets and are offered, basically for earnings period purposes, to the mid to low-earnings category of customers which would maybe even be predominantly self-employed, unbanked, or underbanked people in the agricultural and semi-metropolis areas of India with restricted entry to organized lending channels.
The final automotive financing section in India stood at approximately Rs 11.85 lakh crore as of FY23, witnessing a CAGR of around 11.07% from FY19, and going ahead, the renowned credit score is anticipated to grow at a CAGR of 16-18% from FY23-27 to reach approximately Rs 21 lakh crore.
Kotak Mahindra Capital, Jefferies India, Motilal Oswal Funding Advisors and Nomura Monetary Advisory and Securities (India) are the guide-running lead managers to the self-discipline.
