Jaipur-based non-banking lender SK Finance is in talks for a $50-60 million stake sale to Kenro Capital. Long-term investors like TPG and Norwest are looking for an exit after the company deferred its IPO last year. The deal may include a primary capital raise to support the lender's growth.
Detailed Coverage
SK Finance, a Jaipur-based non-banking financial company, is seeing its early-stage investors explore secondary exit options. Reports indicate that secondary-focused investment fund Kenro Capital is in active negotiations to acquire a stake worth $50-60 million. This transaction would likely involve long-term backers such as TPG and Norwest, who have maintained their positions in the firm for nearly a decade.
Impact of Deferred IPO Plans
This secondary market move follows the company’s decision to shelve its initial public offering last year. SK Finance had previously filed preliminary papers seeking to raise approximately ₹2,200 crore, a mix of new capital and a sale of shares by existing investors. Despite obtaining the necessary regulatory approvals, the management opted to pause the listing process, citing volatile market conditions and valuation concerns. While the IPO remains on hold, the current stake sale provides a liquidity window for early investors without needing an immediate public market debut.
Financial Performance and Growth
SK Finance has maintained a steady growth trajectory in its core business of financing used vehicles and providing small-ticket secured loans to micro, small, and medium enterprises. As of the end of December 2025, the company reported its Assets Under Management at ₹15,750 crore, marking a healthy expansion from ₹13,260 crore in the prior fiscal year. The company’s bottom line has also seen improvement, with a profit after tax of ₹431 crore. With a network of nearly 680 branches spanning 13 states, the company continues to focus on its stronghold in Rajasthan while pursuing geographic diversification.
Strategic Interest from Kenro Capital
For Kenro Capital, this investment aligns with its mandate to target minority stakes within the financial services and consumer goods sectors. The firm, led by former industry executives Norbert Fernandes and Piyush Gupta, is currently in the process of closing its maiden fund, which targets a total corpus of $120-150 million. If finalized, the transaction could potentially be expanded to include a primary capital injection, which would help strengthen the lender’s balance sheet and support its future lending activities.
Investors tracking the company should look for updates regarding the final valuation of this deal and whether the management provides any revised timelines for a potential return to the public markets. The primary monitorable remains the company’s ability to maintain its asset quality and margin levels while scaling its MSME loan book in competitive markets.