SK Finance loan book jumps 27 pc to Rs 13,261 cr in FY25; eyes Rs 2,200 cr via IPO

Jaipur-based SK Finance Ltd, a non-banking financial company has reported 27 per cent rise in its loan book to Rs 13,261 crore for FY25, compared to Rs 10,476 crore in the previous year.

Despite weathering industry headwinds in FY25, SK Finance stayed resilient, delivering an impressive performance backed by robust demand and focused expansion, according to its annual report.

The NBFC saw its profit after tax increase by 21.72 per cent year-on-year to Rs 380 crore, while total income rose 32.7 per cent to Rs 2,386 crore.

Disbursements during the year stood at Rs 8,398 crore, marking a 16 per cent rise, driven by growth in car, tractor and MSME lending.

Commercial vehicle loans comprised the largest share of the company's assets under management (AUM) at 37.9 per cent, followed by MSME loans at 23.1 per cent and car loans at 20.4 per cent. SK Finance maintained a strong capital adequacy ratio of 29.51 per cent, comfortably above regulatory requirements.

Founded in 1994 by Rajendra Kumar Setia to address the lack of institutional credit for small traders and transporters in Rajasthan, the company has focused on rural and semi-urban segments, targeting underserved borrowers in Tier-II and Tier-III cities.

In September last year, SK Finance got Sebi's clearance to float Rs 2,200 crore initial public offering (IPO). The IPO is a combination of a fresh issue of equity shares worth Rs 500 crore and an offer-for-sale (OFS) of up to Rs 1,700 crore by promoters and investor shareholders.

As a part of the OFS, Norwest Venture Partners X-Mauritius and TPG Growth IV SF PTE Ltd will offload shares worth Rs 700 crore each, Evolvence Coinvest I will divest shares to the tune of Rs 75 crore and Evolvence India Fund III Ltd will sell shares worth Rs 25 crore.

Additionally, promoters -- Rajendra Kumar Setia and Rajendra Kumar Setia HUF -- will offload shares aggregating to Rs 180 crore and Rs 20 crore, respectively.

SK Finance plans to utilise proceeds from the fresh issue for augmenting the capital base to meet future business requirements of the company towards onward lending and for general corporate purposes.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)