SK Finance stake sale: Neo, Kenro eye ₹400 crore deal
SK Finance stake sale talks could bring Neo Secondaries Fund and Kenro Capital into the Jaipur-based non-banking financial company, with the two investors expected to acquire a combined stake worth ₹400 crore. Long-term backers TPG and Norwest Venture Partners are expected to be among the selling shareholders as they explore partial exits after holding stakes for eight to nine years.
The conversations are still underway. Mint had earlier reported discussions around a $50-60 million deal, while the current report describes the expected Neo and Kenro purchase as a combined ₹400 crore stake.
What SK Finance does
Founded in the early 1990s by Rajendra Setia and his family, SK Finance initially focused on the underserved used-vehicle financing market. It later expanded into small-ticket secured MSME loans.
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The company operates nearly 680 branches across 13 states. Its portfolio remains concentrated in Rajasthan, although that share has begun to shrink as the company diversifies across Himachal Pradesh, Uttar Pradesh, Karnataka and Telangana.
SK Finance IPO plans
The transaction follows SK Finance’s decision to shelve its listing plans after filing preliminary IPO papers in 2024 to raise about ₹2,200 crore. The company cited unfavourable market conditions, concerns over valuation and subdued investor sentiment when it postponed the listing.
India Ratings said the company would likely revisit its listing plans when market conditions improve.
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