SEBI Approves IPOs for SK Finance, Belstar Microfinance, and Transrail Lighting—Here’s What You Need to Know!

The Securities and Exchange Board of India (SEBI) has given the green light to three companies—SK Finance, Belstar Microfinance, and Transrail Lighting—for their initial public offerings (IPOs).

SEBI’s Approval Process

SEBI issued observation letters to these companies on August 30, 2024. Under SEBI regulations, any company planning to issue an IPO, rights issue exceeding ₹50 crore, or a public offer must submit a draft offer document to the market regulator for approval.

SK Finance’s IPO

SK Finance will be launching the largest IPO among the three, aiming to raise ₹2,200 crore. The company submitted its draft red herring prospectus (DRHP) to SEBI in May 2024. According to the DRHP, SK Finance’s IPO will consist of ₹500 crore in new equity shares and an offer for sale (OFS) of ₹1,700 crore by existing shareholders.

SK Finance, established in 1994, is a vehicle financing company that provides loans for new and used commercial vehicles, tractors, two-wheelers, and business purposes. The funds raised will be used to strengthen its capital base, support future business growth, and for onward lending.

Transrail Lighting’s IPO

Transrail Lighting, a construction company, filed for an IPO in March 2024. The company plans to raise ₹450 crore through the fresh issue of shares.

Belstar Microfinance’s IPO

Belstar Microfinance, a non-banking financial company (NBFC) and a subsidiary of Muthoot Finance, filed its IPO papers in May 2024. The company aims to raise ₹1,300 crore, which includes ₹1,000 crore from the fresh issue of shares and ₹300 crore from an OFS.

Leading Banks

The IPOs will be managed by Inga Ventures Private Limited, ICICI Securities Limited, and Kotak Mahindra Capital Company Limited, who are the lead book-running managers for these offers.