SK Finance Unlisted Shares
SK Finance Limited
INE124N01039
Listing Status: DRHP Filed
About SK Finance Unlisted Shares
Overview of SK Finance Unlisted Shares
- SK is a prominent non-deposit-taking NBFC operating in the middle layer (NBFC ML).
- Vintage: It was founded by Rajendra Kumar Setia in 1994. (30 years)
- Focus Areas: The company specializes in Vehicle financing and MSME financing, offering tailored financial solutions to diverse customer segments.
- Market Leadership: According to the CRISIL Report, SK Finance is the fastest - growing company in both the vehicle and MSME financing segments among its peers, based on AUM CAGR from Fiscal 2021 to Fiscal 2023.
- Robust Distribution Network: As of December 31, 2023, SK Finance operates 535 branches across 11 states and one union territory, with a significant presence in rural areas, supported by a network of 8,853 direct sales agents (DSAs) and a dedicated on-ground sales team.
Product Portfolio
1. Vehicle Financing: SK Finance focuses on financing used and new light and medium commercial vehicles (LCVs and MCVs). They had a notable 77.41% share in used vehicle finance as of December 31, 2023 As of March 2023, their AUM for this segment was ₹3,471 crore (47% of overall AUM), with a 52% year-on-year growth driven by ₹2,731 crore in disbursements.
Verticals:
- Commercial Vehicles
- Cars
- Tractors
- Two-Wheelers
2. MSME Financing: Since 2016, SK Finance has focused on providing asset-backed loans for working capital requirements to MSMEs, targeting mid to low-income, self-employed, unbanked, or underbanked individuals in rural and semi-urban areas. As of March 2023, the AUM was ₹1,217 crore (16% of overall AUM), with a 109% year-on-year growth and ₹879 crore in disbursements. This segment's growth was driven by expanding branches and improved productivity, with MSME financing offered from 238 out of 447 branches.
Rating
Management
- Amar Lal Daultani - Chairperson and Non-Executive Independent Director:
- Holds a bachelor’s degree in science from Agra University.
- Over 34 years of experience in credit, forex, treasury, risk management, and other banking operations.
- Previously worked at Allahabad Bank and Corporation Bank.
- Rajendra Kumar Setia - Managing Director and Chief Executive Officer:
- Holds a bachelor’s degree in science from the University of Rajasthan.
- Over 29 years of experience in financial services.
- Recognized as one of the "ET Business Leaders of Rajasthan 2019" by the Times Group.
Awards and recognition
- Mr. Yash Setia, the whole-time director of SK Finance, was honoured with the prestigious Rajasthan Gaurav Award 2024.
- At BFSI Leadership Awards 2024:
o Mr. Atul Arora was honoured as CFO of the Year – NBFC
o Mr. Girish Dangayach Receives Best Digital Transformation Initiative – NBFC
o Mrs. Anubha Khandelwal Recognized as Chief Compliance Officer of the Year – NBFC
- The Economic Times honoured SK Finance as THE Best Brand of 2023.
- ITOTY Awards'23 for Fastest Growing Tractor Financer in India.
Insights of SK Finance Unlisted Shares
Financial Snapshot: All values in INR – Crs.
Financials |
9M FY23 |
FY 2023 |
FY 2022 |
% increase |
Revenue |
1308.7 |
1314.2 |
820.7 |
60.1% |
EBITDA |
4173 |
324.6 |
145.5 |
123.1% |
PAT |
217.1 |
222.8 |
142.9 |
55.9% |
PAT Margins |
16% |
24% |
17% |
|
EPS |
17.78 |
76.4 |
50.5 |
|
Key Takeaways:
- Total income increased to ₹1,314 Crs. in FY23 from ₹821 Crs. in FY22 | Y-o-Y growth: 60%.
- Net Interest Income increased to ₹695 Crs. in FY23 from ₹4258 Crs. in FY22 | Y-o-Y growth: 62%.
- Assets Under Management (AUM) reached ₹7,378 Crs. in FY23, up from ₹4,714 Crs. in FY22 an increase of 57%.
- Disbursements increased by 74%, reaching ₹5,623 Crs. in FY23 from ₹3,226 Crs. in FY22.
AUM Split:
Revenue Segmentation:
Industry Overview
Key Highlights:
- As of September 2023, NBFCs in the country have disbursed loans amounting to over 450 billion U.S.D.
- Projected CAGR of the NBFC sector: 18.5% | 2021 – 2026
- NBFCs accounted for the highest share of 39.97% in vehicle finance credit outstanding in Fiscal 2023
- NBFC credit is expected to grow at CAGR from 16 - 18% between Fiscals 2023 and 2025.
Rural Market: Rural areas, which accounted for 47% of India's GDP, received just 8% of the overall banking credit as of March 31, 2023. This discrepancy highlights a significant market opportunity for banks and NBFCs to lend in these areas.
Vehicle Finance Industry Trends – India:
- Vehicle loans have surged by 137% in the past 3 years, becoming the second-largest loan segment after home loans.
- The overall vehicle financing segment in India was approximately 11.85 trillion INR as of Fiscal 2023, witnessing a CAGR of around 11.07% from Fiscal 2019.
- Going forward, the outstanding credit in this segment is expected to grow at a CAGR of 16-18% from Fiscal 2023 to Fiscal 2027, reaching approximately 21 trillion INR.
MSME Industry Trends: NBFCs in MSME segment operate with yield in the range of 18-20%, on an average. CRISIL MI&A estimates the profitability in this segment to have increased in Fiscal 2024 at approximately 4% owing to lower credit costs and increase in interest yields.
Source: ICRA, CRISIL, BCG report – 2023
Peer Comparison
Particulars |
SK Finance Ltd. (9M-FY24) |
MAS Financial Services Ltd. (FY24) |
Total Income |
1308 Crs. |
1297 Crs. |
AUM |
9515 Crs. |
9672 Crs. |
PAT |
217 Crs. |
254 Crs. |
Net Profit Margins |
16% |
19% |
CMP (05/07/24) |
₹ 500* |
₹ 297 |
Market Cap |
₹ 6714 Crs. |
₹ 5,391 Cr. |
P/E Ratio |
30.9 |
21.6 |
P/B Ratio |
2.4 |
2.7 |
Financial Charts of SK Finance Unlisted Shares
Balance Sheet of SK Finance Unlisted Shares
Profit and Loss of SK Finance Unlisted Shares
Ancillary of SK Finance Unlisted Shares
Ratio Analysis
Peers
Industry Benchmarking
Segment Revenue
Subsidaries
Security Allotment
Corporate Governance
Team Management Details
FAQs of SK Finance Unlisted Shares
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How to buy SK Finance Limited?
Below are three ways through which you can purchase SK Finance Limited:
- We at Altius Investech have many actively traded scripts and are market makers of unlisted shares. To check out all the unlisted shares traded. (Click on link). To submit a request to buy SK Finance Limited, please click on the trade button at the top of this page
- Additionally, you can download our app from your play store or app store, register on our application, and engage in active trading there.
Download the Altius App here https://onelink.to/hf4m72 - You can also reach out to us at : +91 8240614850 / +91 8240861716
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How to sell SK Finance Limited?
Below are three ways through which you can sell SK Finance Limited:
- We at Altius Investech have many actively traded scripts and are market makers of unlisted shares. To check out all the unlisted shares traded. (Click on link). To submit a request to sell SK Finance Limited, please click on the trade button at the top of this page
- Additionally, you can download our app from your play store or app store, register on our application, and engage in active trading there.
Download the Altius App here https://onelink.to/hf4m72 - You can also reach out to us at : +91 8240614850 / +91 8240861716
-
What is the price of SK Finance Limited?
We provide a two way quote on all the shares we deal in. Your buy price for SK Finance Limited is ₹925 and your sell price for SK Finance Limited is ₹650. The price is based on our estimates and market conditions.
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What is the lock-in period of SK Finance Limited?
The lock-in period for SK Finance Limited varies depending on the category of investors:
- For retail Investors, HNIs, or Body Corporates, the lock-in period is 6 months from the date of the listing of SK Finance Limited
- For Venture Capital Funds or Foreign Venture Capital Investors, there is a lock-in period of 6 months from the date of acquisition of SK Finance Limited
- For AIF-II (Alternative Investment Funds - Category II), there is no lock-in period
August 2021 saw the introduction of this regulation by SEBI. The purpose of the regulation change, which lowered the lock-in period from a year to six months, was to incentivize additional investments in firms getting ready for initial public offerings, or IPOs. Since its introduction, a number of Portfolio Management Services (PMS) have advised their clients to purchase Pre-IPO shares in order to take advantage of the advantages associated with early-stage investments. This reduction in the lock-in period is considered as a significant step forward.
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How is the SK Finance Limited price calculated?
Fundamental & Comparative valuation models and the forces of demand and supply in the market for unlisted shares dictate the price. These prices are based on our estimates and transaction history of SK Finance Limited. The price is also determined from the most recent funding round for SK Finance Limited. This provides us with a benchmark valuation, offering a clear indication of the company's current market value as perceived by investors and industry experts.
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What are the lot sizes of SK Finance Limited?
We can generally arrange lot sizes starting with an investment of INR 20,000. To confirm the lot sizes of SK Finance Limited with us kindly click here.
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What are the financials of SK Finance Limited?
The financials of SK Finance Limited which includes the P/L of SK Finance Limited and the Balance Sheet of SK Finance Limited is in the financials section (Click on link).
-
Where can I find the annual report of SK Finance Limited?
The annual report of SK Finance Limited is available in the annual report section (Click on link).
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Is buying SK Finance Limited legal in India?
Yes, buying and selling unlisted shares in India is indeed 100% legal. This activity is regulated and governed under the guidelines provided by the Securities and Exchange Board of India (SEBI). Investors and traders must adhere to these regulations and guidelines to ensure compliance with legal and financial standards. It's important for participants in the unlisted share market to be aware of and understand these regulations to engage in transactions legally and securely.
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Short-term Capital Gain taxes to be paid on SK Finance Limited?
When you sell unlisted shares within a period of two years from the date of acquisition, any profit earned from the sale is classified as Short-term Capital Gain (STCG). This gain is then added to your total income for that financial year. The tax on this short-term capital gain is calculated based on your applicable individual income tax slab rates. Therefore, the rate at which you will pay tax on the STCG from unlisted shares depends on your total income, including this gain, and the tax slab it falls under as per the prevailing income tax laws in India. It's important for investors to consider these tax implications when engaging in transactions involving unlisted shares.
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Long-term Capital Gain taxes to be paid on SK Finance Limited and how are They Taxed?
Long-term Capital Gains (LTCG) on unlisted shares in India refer to the profits earned from the sale of unlisted shares that have been held for more than two years. The key aspects of LTCG on unlisted shares include:
- Tax Rate: LTCG on unlisted shares is taxed at a rate of 20%.
- Indexation Benefit: This is a significant advantage for investors. Indexation allows for adjusting the purchase price of the shares for inflation, which can reduce the taxable gain.
- Importance for Investors: Understanding LTCG is crucial, especially for High Net-worth Individuals (HNIs) and retail investors, as it impacts their investment strategy and tax planning. Knowing these details helps in making informed investment decisions.
- Calculation: LTCG is calculated by subtracting the indexed cost of acquisition (the purchase price adjusted for inflation) from the sale price of the shares. The profit thus calculated is subject to a 20% tax.
- Applicability: LTCG tax is applicable to profits from the sale of unlisted shares held for more than two years.
- Relevance: This tax is particularly relevant to investors in the unlisted share market, including those considering selling their holdings after a period of more than two years.
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Applicability of Taxes on SK Finance Limited once it is listed?
When shares initially bought in the unlisted market become listed, the taxation rules change significantly if these shares are sold through a stock exchange. Here's what investors need to know:
Transition to Listed Market Tax Rates: Once unlisted shares are listed on the stock exchange and subsequently sold, the tax rates applicable to listed securities come into effect. This shift means that the favourable tax treatments for listed shares, as per the prevailing tax laws, will apply.
Taxation Based on Holding Period: The crucial factor in determining the type of capital gains tax (Long-term or Short-term) is the holding period of the shares. Importantly, this period is calculated from the original purchase date when the shares were unlisted.
Long-term vs. Short-term Capital Gains: If the shares are sold after being held for more than one year from the date of purchase (including the period when they were unlisted), they are subject to Long-term Capital Gains (LTCG) tax.
Conversely, if sold within one-year, Short-term Capital Gains (STCG) tax rates apply.
Significance for Investors: This information is vital for investors in the unlisted market, as it impacts their tax planning and decision-making process. Understanding these nuances ensures that investors can strategically plan the sale of their shares post-listing to optimize tax implications.
Advice for Investors: It's advisable for investors to keep a record of their purchase dates and monitor the listing dates closely. Additionally, staying updated with the latest tax regulations or consulting with a financial advisor is recommended for accurate tax calculations and compliance. -
How does Altius Investech source SK Finance Limited?
At Altius Investech, our approach to sourcing Boat Unlisted Share (Imagine Marketing) involves a strategic and direct method. Primarily, we acquire these shares from the below key groups:
Employees of the Company: Employee stock option plans (ESOPs) or other compensation packages frequently include shares for firm employees. For a various reasons, such as including portfolio diversification or financial considerations, some of these employees may eventually choose to sell their shares. We engage with these employees, providing them a platform to sell their shares.
Initial Investors: These are the angel or early-stage investors who provided capital to the business in its early stages. These original investors may look to sell all or part of their ownership position in the company as it develops and flourishes. This might be done for various reasons such as in order to maximise their investment, reallocate resources, or make other calculated financial decisions.
Funding rounds and VC funds: Altius Investech sources the shares from private placement rounds in which private companies seek to obtain capital from the market. Through our platform, venture capital funds can liquidate their shares and we receive the inventory from them when they decide to sell a portion of their ownership through block trades.
By establishing connections with these groups, Altius Investech guarantees our clients a steady and dependable supply of Boat Unlisted Share (Imagine Marketing). This process not only makes it easier for employees and initial investors in liquidating their assets, but it also gives our clients access to shares that aren't often found on the open market. Our platform effectively facilitates a win-win situation for both buyers and sellers. -
How to trust Altius Investech before buying SK Finance Limited from its platform?
Altius Investech stands at being India's fastest growing and leading marketplace for buying and selling unlisted shares. We believe in enabling access to alternative sources of investments at lower entry barriers to private equity investments.
With more than 25 years of experience, Altius Investech has carved a niche in the financial market by serving more than 8000 clients. The incredible journey is further highlighted by the vast number of transactions that Altius Investech has facilitated transactions that have already exceeded 300 crores.
For investors Altius Investech curates investment opportunities in companies at reasonable valuations which are on the verge of an IPO leading to massive value unlocking. Investments are backed by thorough research and sound investment thesis, with a time bound exit plan.
For ESOP Shareholder and existing Investors, we assist them to liquidate their shares even if they are not publicly traded by creating a platform where we find the right buyers and sellers for the best prices.
Altius Investech have been featured in top media news outlets like Economic Times, Financial Express, Money control. Check out about us on these - leading publications (Click on link) Our journey over these years has not just been about numbers; it's been about building trust and reliability.
We at Altius Investech are dedicated to upholding the greatest levels of ethics and transparency, making sure that your investment experience is not only profitable but also safe and reliable.
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