Sebi puts SK Finance’s Rs 2,200-cr IPO in abeyance

New Delhi: Capital markets regulator Sebi has kept in ‘abeyance’ the proposed initial share sale of vehicle finance and business loan-focused non-bank lender SK Finance. Without disclosing the reason, Securities and Exchange Board of India (Sebi) said “issuance of observations has been kept in abeyance with regard to the IPO of SK Finance,” an updated showed on the regulator’s website on Monday.

The Jaipur-based lender had filed its preliminary papers with the capital markets regulator in May this year. According to the draft papers, the initial public offering (IPO) of SK Finance is a combination of a fresh issue of equity shares worth Rs500 crore and an offer for sale (OFS) of up to Rs1,700 crore by promoters and investor shareholders.

As part of the OFS, Norwest Venture Partners X-Mauritius and TPG Growth IV SF PTE Ltd will offload shares worth Rs 700 crore each, while 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, according to the draft red herring prospectus (DRHP).