New Delhi: Capital markets regulator Sebi has kept on "suspension" the proposed initial share sale of non-banking lender SK Finance, focused on vehicle finance and commercial loans.
Without disclosing the reason, the Securities and Exchange Board of India (Sebi) said "issuance of observations (has been) put on hold" regarding SK Finance's IPO, an update on the regulator's website showed. on Monday.
The Jaipur-based lender filed its preliminary documents with the capital markets regulator in May this year.
According to drafts, SK Finance's initial public offering (IPO) is a combination of fresh issue of shares worth Rs 500 crore and offer for sale (OFS) of up to Rs 1,700 crore by promoters and shareholders investors.
As part of the SFO, Norwest Venture Partners Fund III Ltd will sell shares. worth 25 million rupees.
Further, the promoters, Rajendra Kumar Setia and Rajendra Kumar Setia HUF, will offload shares totaling Rs 180 crore and Rs 20 crore respectively, according to the draft red herring prospectus (DRHP).
SK Finance plans to use the proceeds from the fresh issue to raise the capital base to meet the company's future business requirements for future borrowings and for general corporate purposes.
The NBFC has been operating in two verticals: vehicle financing and micro, small and medium enterprise (MSME) financing. It has a presence in 11 states and one Union Territory through 535 branches as of December 2023.
According to a Crisil report, the overall vehicle finance segment in India stood at around Rs 11.85 lakh crore in fiscal 2023, marking a compound annual growth rate (CAGR) of around 11 per cent. percent from fiscal year 2019. Looking ahead, according to the report, outstanding credit is expected to grow at a CAGR of 16-18 percent from fiscal year 2023 to fiscal year 2027 to reach 21 million lakh rupees.
Earlier this year, SK Finance had raised Rs 1,328 crore from investors. Motilal Oswal Private Equity pumped in Rs 415 crore for a minority stake in 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 lead managers of the issue.
The company's shares are proposed to be listed on the NSE and BSE.
Without disclosing the reason, the Securities and Exchange Board of India (Sebi) said "issuance of observations (has been) put on hold" regarding SK Finance's IPO, an update on the regulator's website showed. on Monday.
The Jaipur-based lender filed its preliminary documents with the capital markets regulator in May this year.
According to drafts, SK Finance's initial public offering (IPO) is a combination of fresh issue of shares worth Rs 500 crore and offer for sale (OFS) of up to Rs 1,700 crore by promoters and shareholders investors.
As part of the SFO, Norwest Venture Partners Fund III Ltd will sell shares. worth 25 million rupees.
Further, the promoters, Rajendra Kumar Setia and Rajendra Kumar Setia HUF, will offload shares totaling Rs 180 crore and Rs 20 crore respectively, according to the draft red herring prospectus (DRHP).
SK Finance plans to use the proceeds from the fresh issue to raise the capital base to meet the company's future business requirements for future borrowings and for general corporate purposes.
The NBFC has been operating in two verticals: vehicle financing and micro, small and medium enterprise (MSME) financing. It has a presence in 11 states and one Union Territory through 535 branches as of December 2023.
According to a Crisil report, the overall vehicle finance segment in India stood at around Rs 11.85 lakh crore in fiscal 2023, marking a compound annual growth rate (CAGR) of around 11 per cent. percent from fiscal year 2019. Looking ahead, according to the report, outstanding credit is expected to grow at a CAGR of 16-18 percent from fiscal year 2023 to fiscal year 2027 to reach 21 million lakh rupees.
Earlier this year, SK Finance had raised Rs 1,328 crore from investors. Motilal Oswal Private Equity pumped in Rs 415 crore for a minority stake in 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 lead managers of the issue.
The company's shares are proposed to be listed on the NSE and BSE.
