TPG-backed SK Finance said to shelve India IPO after weak demand

SK Finance filed its draft IPO prospectus in May last year and secured regulatory approval in August 2024, which expires this week

TPG Inc.-backed SK Finance Ltd. has shelved plans for an initial public offering in India after the company failed to draw enough investor demand for the deal to go ahead, according to people familiar with the matter.

The non-bank lender sought to launch the deal earlier this month but demand fell short, even after reducing the valuation and offer size, the people said, asking not to be identified as the information is private. SK Finance cut the proposed offer to Rs 1,600 crore ($183 million) from Rs 2,200 crore, Bloomberg News reported earlier this month.

Representatives for the company didn’t respond to requests for comments.

SK Finance filed its draft IPO prospectus in May last year and secured regulatory approval in August 2024, which expires this week. After the approval runs out, the company would need to refile for an IPO if it revives the offering.

Shadow banks in India typically target customers who have limited or no access to traditional banking services because of their low income or lack of credit history. The lenders put higher interest rates on loans, which can make them more vulnerable to defaults and a stress point for the wider financial system.

SK Finance, which focuses on vehicle financing and small loans, is also backed by Norwest Venture Partners.

Kotak Mahindra Capital Co., Jefferies Financial Group Inc., Motilal Oswal Investment Advisors, and Nomura Holdings Inc. are acting as book-running lead managers for the deal, according to the prospectus.