TPG-backed non-bank lender SK Finance has reportedly withdrawn its planned initial public offering (IPO) in India after failing to generate sufficient investor interest, according to a report by Bloomberg citing sources familiar with the situation.
The company had aimed to launch the offering earlier this month but struggled to gain traction, even after revising the deal’s valuation and reducing the offer size. The planned issue was scaled back from INR22bn to INR16bn (approximately $183m), as reported by Bloomberg.
SK Finance, which counts Norwest Venture Partners among its investors alongside TPG, filed its draft red herring prospectus in May 2024 and secured regulatory approval in August that same year. With that approval now set to expire, the company would need to refile its IPO application should it seek to relaunch the deal at a later date.
Headquartered in India, SK Finance specialises in vehicle financing and small-ticket loans, primarily targeting underbanked and financially underserved customers. Like many shadow lenders in the region, the firm lends to borrowers with limited access to formal credit, a segment that typically commands higher interest rates but can also present elevated credit risk.
Kotak Mahindra Capital, Jefferies, Motilal Oswal Investment Advisors, and Nomura were mandated as bookrunning lead managers for the offering, according to the IPO documents.
SK Finance declined to comment on the matter.
