SK Finance IPO – Review, Bid, Size, Allotment, Subscription, GMP & RHP
Last Updated Date: May 28, 2024Let’s have a detailed review of the company and analytics of the SK Finance IPO release date, IPO offer price, subscription, SK Finance Limited IPO allotment, grey market price, and other details like the company’s background, its financial positions, its promoters, and other related things.
| Face Value | Rs 1 |
| Price Band | Rs [●] |
| Listing At | BSE, NSE |
| Min. Order Quantity | NA Shares |
| Listing Date | NA |
| Offer for Sale | Rs 17,000 Million |
| Fresh Issue | Rs 5,000 Million |
| IPO Size | Rs 22,000 Million |
| Tick Size | 1 |
SK Finance IPO is listed at a [●] premium. Check out the live share price by clicking on the below link.
| Live Performance – SK Finance Share Price |
SK Finance IPO – Summary
Their Company was established in 1994 by Rajendra Kumar Setia. They are a non-deposit-taking non-banking finance company middle layer (“NBFC ML”), operating in two verticals, vehicle financing and financing for Micro, Small and Medium Enterprises (“MSME”).
According to the CRISILReport, they are the fastest growing player in the vehicle financing segment and the MSME financing segment among their peers analyzed, based on their assets under management (“AUM”) CAGR in the respective segment for the period between Fiscal 2021 and Fiscal 2023.
The Promoter of this company is RAJENDRA KUMAR SETIA, YASH SETIA AND RAJENDRA KUMAR SETIA HUF. The lead managers of the issue are Kotak Mahindra Capital Company Limited, Jefferies India Private Limited, Motilal Oswal Investment Advisors Limited and Nomura Financial Advisory and Securities (India) Private Limited, and the Registrar of this issue is KFin Technologies Limited.
SK Finance IPO Date
The opening and closing dates of SK Finance IPO are not available yet.
SK Finance IPO Subscription
| Day / Date | QIB | NII | RII | Total Subscription |
| 1st Day – | ||||
| 2nd Day – | ||||
| 3rd Day – | ||||
| Shares Offered or Net Issue |
The shares subscribed by the public will be updated here.
SK Finance IPO Allotment Status
Here, you can find the Allotment Status of this IPO.
Allotment of Equity Shares pursuant to the Fresh Issue and transfer of the Offered Shares of the Promoter Selling Shareholders pursuant to the Offer for Sale to the successful Bidders. However, the Allotment Status is not yet disclosed.
SK Finance Limited IPO Listing Date
Find the dates below on basis of allotment, refund, listing, and more:
| Basis of Allotment Finalization | – |
| Refunds Initiation | – |
| Credit of Shares to Demat Account | – |
| Share Listing Date | – |
SK Finance IPO Price Band
The face value of each share is Rs.1, but the price band of the IPO is Rs.[●]
SK Finance IPO Equity Size
This Initial Public Issue of X Equity Shares of Rs.1 each for cash at a price of Rs.[●] per equity share aggregating to Rs.22,000 Million.
SK Finance IPO Share Offering
Fresh Issue: The Issue (excluding the Market Maker Reservation Portion) of [●] Equity Shares of Rs.1/ each.
Issue Size: X Equity Shares of Rs.1 each, aggregating to Rs.22,000 Million
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SK Finance IPO – Live Performance
The listing date of this IPO is [●]. You can check the live performance of the IPO here, only after it is listed on exchanges.
| Live IPO Performance – SK Finance Share Price |
SK Finance IPO Grey Market Premium
The SK Finance Limited IPO Grey Market Premium price is Rs X, the Kostak rate is Rs X and the Subject to Sauda is Rs X.
SK Finance IPO – Company Overview
In their vehicle financing vertical, they primarily have a secured, granular and retail loan portfolio for financing used and new commercial vehicles (excluding medium and heavy commercial vehicles) (“CVs (excluding M&HCVs)”), cars and tractors as well as new two-wheelers.
According to the CRISIL Report, among the peers considered, for the nine months ended December 31, 2023, their Company had the highest used vehicle finance share of 77.41% as part of their vehicle financing portfolio. In addition, they have identified specific businesses in the MSME sector to which they offer loans. They started the MSME lending business in late 2016, where they primarily lend for the purpose of working capital requirements of these businesses.
These loans are fully backed by assets and are offered, primarily for income generation purposes, to the mid to low-income category of customers that are predominantly self-employed, unbanked or underbanked individuals in the rural and semi-urban areas of India with limited access to organized lending channels.
SK Finance IPO – Financial Statements
A quick look into the past financial performance of the company to understand its performance of the business and evaluate the growth prospectus:
Financial Summary:
| Amount (in INR & Million) | |||||
| 31-Dec-23 | 31-Dec-22 | 31-Mar-23 | Mar-22 | 31-Mar-21 | |
| Total Assets |
1,08,496.27
|
82,923.42
|
90,556.59
|
62,319.65
|
42,905.69
|
| *Total Revenue |
13,087.17
|
9,212.36
|
13,027.68
|
8,143.82
|
6,728.57
|
| Total Expense |
10,343.52
|
7,462.96
|
10,240.32
|
6,430.84
|
5,590.76
|
| Profit After Tax |
2,171.01
|
1,388.83
|
2,227.86
|
1,428.74
|
910.83
|
Earnings per Equity Share (in Million)
| 31-Dec-23 | 31-Dec-22 | 31-Mar-23 | Mar-22 | 31-Mar-21 | |
| Basic & Diluted |
17.78
|
11.94
|
19.13
|
12.62
|
9.04
|
Further, their PAT for the period ended on March 31, 2023, March 31, 2022, and March 31, 2021, were Rs. 2,227.86 Million, Rs. 1,428.74 Million and Rs. 910.83 Million respectively.
SK Finance IPO – Promoters
The Promoter of this company is:
- RAJENDRA KUMAR SETIA,
- YASH SETIA
- RAJENDRA KUMAR SETIA HUF
List of Related Parties (Key Managerial Personnel)
- Amar Lal Daultani, Chairperson and Non-Executive Independent Director
- Rajendra Kumar Setia, Managing Director and Chief Executive Officer
- Yash Setia, Whole-time Director
- Anand Raghavan, Non–Executive Independent Director
SK Finance IPO – Promoters Holding
- Pre-Issue Share Holding – %
- Post-Issue Share Holding – %
SK Finance IPO Offer Details or Issue Details
| Particulars | No. Of Equity Shares |
| Equity Shares Offered | Up to X Equity Shares aggregating up to Rs.22,000 Million |
| of which: | |
| Issue Reserved for the Market Makers | Up to [●] Equity Shares aggregating up to Rs.[●] Million |
| Net Issue to the Public | Up to [●] Equity Shares aggregating up to Rs.[●] Million |
| Of which: | |
| Retail Investors Portion | Not less than [●] Equity Shares |
| Other than Retail Individual Investors | Not more than [●] Equity Shares |
| Equity Shares outstanding prior to the Issue | 133,799,152 Equity Shares |
| Equity Shares outstanding after the Issue | X Equity Shares |
SK Finance IPO Issue Object
Their Company proposes to utilize the Net Proceeds towards funding the following objects:
- Augmenting their capital base to meet future business requirements of their Company towards onward lending; and
- General corporate purposes
SK Finance IPO – Business Strategy
- Increase penetration and distribution network in existing markets and diversify into contiguous markets
- Focus on improving their operational efficiencies
- Continue to invest in technology to upgrade productivity, systems and procedures and further the use of analytics in the business
- Strengthen their brand equity through marketing initiatives
SK Finance IPO – Basis of Offer Price
The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.
Qualitative factors are:
- According to the CRISIL Report, they are the fastest growing player in the Vehicle & MSME finance segment among the peers analyzed, with a growing presence in the underpenetrated used CVs (excluding M&HCVs) and MSME financing segment based on their AUM CAGR in the respective vertical for the period between Fiscal 2021 and Fiscal 2023.
- They have a deep sales network enabling access to a large demography of customers in the rural and semi urban areas of India. Through their branch network spreading across rural and semi-urban areas, they understand the characteristics of the local markets and their customers. This allows them to assist in addressing specific needs and further improving their penetration into such markets.
- They have developed comprehensive systems and processes for underwriting, collections and risk management. These systems and processes are customized to assess their target customers’ income and evaluate collaterals in a structured manner in order for them to minimize their risk.
- They have an experienced and professional management team with extensive industry knowledge
The relevant quantitative factors are:
| Basic & Diluted EPS | RONW (%) | NAV (Rs.) | |
| 31-Mar-23 |
19.13
|
13.01%
|
155.5
|
| 31-Mar-22 |
12.62
|
11.15%
|
– |
| Mar-21 |
9.04
|
9.87%
|
– |
SK Finance IPO: Competitive Peers
| Face Value (Rs.) | P/E | EPS (Rs.) | Return on Net Worth (%) | Total NAV | |
| SK Finance Limited | 1 | [●] |
19.13
|
13.01%
|
155.53 |
| Listed Peers | |||||
| Shriram Finance Limited | 10 |
15.7
|
160.54
|
14.84%
|
1162.12
|
| AU Small Finance Bank Limited | 10 |
27.6
|
21.86
|
15.44%
|
164.64
|
SK Finance IPO Lead Managers
| Lead Managers |
|
Kotak Mahindra Capital Company Limited Jefferies India Private Limited Motilal Oswal Investment Advisors Limited Nomura Financial Advisory and Securities (India) Private Limited |
SK Finance IPO Registrar to offer
| Registrar to the Offer |
| KFin Technologies Limited Selenium Tower B, Plot No. 31 and 32, Financial District, Nanakramguda, Serilingampally Hyderabad-500 032, Telangana, India Tel: +91 40 6716 2222/18003094001 E-mail: skfinanceltd.ipo@kfintech.com Investor grievance e-mail:einward.ris@kfintech.com Website: www.kfintech.com Contact Person: M.Murali Krishna SEBI Registration No.: INR000000221 |
SK Finance IPO – Other Details
- Statutory Auditor – BSR & Co. LLP, Chartered Accountants
- Legal Counsel to the Company – Cyril Amarchand Mangaldas
- Bankers to the Company – Axis Bank, Bank of Baroda, The Federal Bank Limited, and IDFC First Bank
SK Finance IPO Review by Stock Brokers
| Top Stock Brokers Review | Company Reputation | Competitive Edge | Financial Statement | Popularity Index | Promoters Reputation |
| Angel Broking | 7.5/10 | 7.4/10 | 8.5/10 | 8.1/10 | 7.1/10 |
| Sharekhan | 7.2/10 | 7.1/10 | 8.6/10 | 8.1/10 | 7.2/10 |
| Kotak Securities | 7.3/10 | 7.5/10 | 8.4/10 | 8.1/10 | 7.3/10 |
| ICICI Direct | 7.3/10 | 7.3/10 | 8.7/10 | 8.1/10 | 7.1/10 |
| IIFL | 7.5/10 | 7.2/10 | 8.8/10 | 8.0/10 | 7.1/10 |
| Edelweiss | 7.5/10 | 7.4/10 | 8.4/10 | 8.3/10 | 7.2/10 |
| Zerodha | 7.4/10 | 7.1/10 | 8.5/10 | 8.1/10 | 7.0/10 |
| 5Paisa | 7.1/10 | 7.1/10 | 8.4/10 | 8.1/10 | 7.1/10 |
| Karvy | 7.4/10 | 7.3/10 | 8.2/10 | 8.1/10 | 7.1/10 |
| Motilal Oswal | 7.1/10 | 7.1/10 | 8.6/10 | 8.3/10 | 7.2/10 |
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SK Finance Limited IPO News
News 1 – IPO DRHP Download
News 2 – IPO RHP Prospectus Download
SK Finance IPO Review FAQs
Check out various FAQs related to SK Finance IPO:
What is the Issue Size of SK Finance IPO?
The Company is making an initial public offer of NA equity shares. They vividly portray the aspects of the issue in this article. You can check the stats on the fresh issue, Offer for sale, and net issue.
What is the Price band of SK Finance IPO?
The price band for this particular IPO ranges between Rs NA. As far as the face value of the share is concerned, it is Rs. 1 per share.
What is the SK Finance IPO Open Date?
The opening and closing dates for this IPO have been updated. The IPO is set to open on NA, while the closing date is set at NA.
What is the SK Finance IPO Allotment Date?
They also have the news regarding the respective allotment dates of this IPO. The basis of Allotment finalization is on NA, refund initiation is on NA, credit of shares is on NA, and share listing date is on NA.
What is the SK Finance IPO Listing Date?
Shares of this company shall be listed in the exchanges NA. The date, when the listing would be done, is stagnant on NA.
Who is the Registrar of SK Finance IPO?
One of the reputed registrars is managing the issue of this IPO, i.e. KFin Technologies Limited. Their website will help you regarding the further information you are on the lookout for.
Who is the Promoter of SK Finance IPO?
Here are the promoters of this IPO – RAJENDRA KUMAR SETIA, YASH SETIA AND RAJENDRA KUMAR SETIA HUF. You can refer to the RHP for further information on the promoter. You will find the link to RHP in the article.
What is the GMP of SK Finance IPO?
They have obtained the GMP of this IPO and it is Rs NA. Further insights into the Kostak rate and subject to sauda or SS are as well included in this report.
Is SK Finance IPO Good for Investment?
They have further provided the financial status of the company in this article, from the past few years. You can refer to the same, and also check the line of operations they are into and then decide to invest in the IPO.
What is the PAT of SK Finance Company?
They have the information on company financials, and according to that, they have the figures from the last few years to provide. PAT for the financial year 2023 in Million is 2,227.86, 2022 is 1,428.74, and 2021 is 910.83. PAT from Dec 2023 is 2,171.01.
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