Offshore investor funds PE-supported SK Finance in preparation for upcoming Initial Public Offering
In a strategic move to bolster its rural vehicle finance growth, Jaipur-based non-bank finance company SK Finance Ltd has secured up to $50 million from an offshore returning investor. This investment comes before the company's anticipated Initial Public Offering (IPO), which aims to raise ₹2,200 crore.
The exact terms and conditions of this deal remain undisclosed, but it is clear that SK Finance has received regulatory approval for its IPO and is actively working on capital-raising efforts to support its business expansion.
This investment could have significant implications for other non-bank lenders seeking capital, as the success of SK Finance's fundraising efforts may serve as a benchmark for the industry. It is worth noting that SK Finance is not the first non-bank lender to seek fresh capital in recent times.
SK Finance Ltd, which counts private equity firms TPG and Motilal Oswal Alternates as its shareholders, specialises in providing financing solutions for vehicles in rural areas. The company's decision to tap an offshore returning investor could signal a growing trend among non-bank lenders to seek capital from international markets.
Meanwhile, in other financial news, GIC-backed Asia Healthcare is aiming to acquire a majority stake in a diagnostic chain, while Motilal Oswal Alternates has closed its sixth real estate fund. In the BFSI sector, Sahyadri Farmers, despite a diversification drive, has seen a slowdown in growth in FY25. Elsewhere, Apax is reducing its stake in Fractal, a company with a valuation of $2.44 billion, with Gaja Capital and others investing.
As always, stay tuned for the latest updates in the world of finance.
In this context, SK Finance Ltd, having received up to $50 million from an offshore returning investor, could potentially leverage this private-equity investment to expand its business activities in rural vehicle financing. Given that the company is working on capital-raising efforts before its anticipated IPO, this fundraising success could serve as a notable example for other non-bank lenders looking to secure resources for their business expansion in the industry.
