SK Finance loan book jumps 27% to ₹13,261 crore in FY25; eyes ₹2,200 crore via IPO

Jaipur-based SK Finance Ltd, a non-banking financial company, on Tuesday reported a 27% rise in its loan book to ₹13,261 crore for FY25, compared to ₹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, the company said in a statement.

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

Disbursements during the year stood at ₹8,398 crore, marking a 16% 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%, followed by MSME loans at 23.1% and car loans at 20.4%. SK Finance maintained a strong capital adequacy ratio of 29.51%, comfortably above regulatory requirements, the company added.

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 a ₹2,200 crore initial public offering (IPO). The IPO is a combination of a fresh issue of equity shares worth ₹500 crore and an offer-for-sale (OFS) of up to ₹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 ₹700 crore each, Evolvence Coinvest I will divest shares to the tune of ₹75 crore and Evolvence India Fund III Ltd will sell shares worth ₹25 crore.

Additionally, promoters, Rajendra Kumar Setia and Rajendra Kumar Setia HUF, will offload shares aggregating to ₹180 crore and ₹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.