SK Finance IPO Upcoming
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About SK Finance
SK Finance is a Jaipur-based non-banking financial company (NBFC) established in 1994. It has been reported that the company specializes in providing loans for vehicles and small businesses, particularly targeting underserved populations in rural and semi-urban areas across India. Over the years, SK Finance has expanded its operations to over 579 branches in 11 states and 1 union territory, supported by a workforce exceeding 11,400 employees. The company’s growth has been bolstered by investments from prominent private equity firms, including Norwest Venture Partners, TPG Capital, Baring India, and Evolvence India.
Financials of SK Finance
*All figures are in ₹ Crores.
Issue size
| Funds Raised in the IPO | Amount |
| Overall | ₹2200 crores |
| Fresh Issue | ₹500 crores |
| Offer for sale | ₹1700 crores |
Utilisation of proceeds
| Purpose | INR crores (%) |
| To meet future business requirements | 375 (75%) |
| General corporate purposes | (not above 25% gross proceeds) |
Strengths
- Technology driven company with scalable operating model
- Diversified sources of funding
- Comprehensive systems and process for underwriting, collections and risk management
- Deep sales network enabling access to a large demography of customers in the rural and semi urban areas
Risks
- Credit risk from customer or counterparty defaults on receivables and loans.
- Potential difficulty in meeting financial obligations requiring cash or equivalent settlement.
- Potential impact on earnings or value from fluctuations in market interest rates.
- Exposure to limited price risk from short-term treasury investments.
- Potential loss from exchange rate fluctuations affecting foreign-denominated transactions or balances.