Sebi gives nod to SK Finance, Belstar Microfinance, and Transrail Lighting IPO, check details here

The Securities and Exchange Board of India (SEBI) has approved the initial public offering (IPO) plans for three companies, which include SK Finance, Belstar Microfinance, and Transrail Lighting.

The market regulator issued observation letters to these companies on August 30.

Sebi regulations require every company that wishes to issue an IPO to make a rights issue exceeding ₹50 crore, or make a public offer to submit a draft offer document to the market regulator.

Of all the Sebi-approved companies, SK Finance will be offering the biggest issue to raise ₹2,200 crore. The company filed the draft red herring prospectus (DRHP) papers with Sebi in May 2024.

According to the company’s DRHP, SK Finance’s IPO will include equity shares amounting to ₹500 crore and an offer for sale (OFS) of ₹1,700 crore for the shareholders.

SK Finance

SK Finance Limited is a vehicle financing company that funds used and new commercial vehicles, tractors, two-wheelers and business loans. The company was established in 1994.

The company plans to use the proceeds from the fresh issue to strengthen its capital base, for meeting future business requirements, to engage in onward lending, and to conduct the business.

Transrail Lighting

Transrail Lighting, a construction company, filed a preliminary paper with Sebi in March for an IPO. The offer will include a fresh issue of ₹450 crore by the company.

Belstar Microfinance

Belstar Microfinance is a non-banking financing company (NBFC) that is a subsidiary of Muthoot Finance. The NBFC filed its preliminary papers in May. The microfinance company plans to raise ₹1,300 crore through the IPO. The company’s IPO will combine a fresh issue of equity shares worth ₹1,000 crore and an offer-for-sale of ₹300 crore.

Inga Ventures Private Limited, ICICI Securities Limited, and Kotak Mahindra Capital Company Limited are the book-running leads for the approved offers.