SEBI approves IPOs for SK Finance, Belstar Microfinance and Transrail Lighting

SEBI approves IPOs: The Securities and Exchange Board of India (SEBI) has granted approval for the initial public offerings (IPOs) of SK Finance, Belstar Microfinance, and Transrail Lighting. This move was confirmed with observation letters issued to the companies on August 30.

Amongst the three, SK Finance is set to make the largest offering, aiming to raise Rs 2,200 crore. The company submitted its draft red herring prospectus (DRHP) to SEBI in May 2024. The IPO will comprise Rs 500 crore worth of equity shares and an offer for sale (OFS) of Rs 1,700 crore by existing shareholders.

SK Finance

Founded in 1994, SK Finance specialises in vehicle financing, including commercial vehicles, tractors, two-wheelers, and business loans. The company plans to utilise the funds from the IPO to boost its capital base, support future business needs, and facilitate onward lending.

Transrail Lighting

This construction firm submitted its preliminary IPO papers to SEBI in March. The company aims to raise Rs 450 crore through its IPO.

Belstar Microfinance

A subsidiary of Muthoot Finance, Belstar Microfinance filed its preliminary documents with SEBI in May. The company seeks to raise Rs 1,300 crore, with the IPO consisting of a fresh issue of equity shares worth Rs 1,000 crore and an OFS of Rs 300 crore.

The book-running lead managers for these IPOs are Inga Ventures Private Limited, ICICI Securities Limited, and Kotak Mahindra Capital Company Limited.