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SK Finance hits pause on ₹2,200cr IPO
SK Finance—a vehicle financing and micro-lending company backed by TPG and Norwest Venture Partners—has hit pause on its much-anticipated IPO in India.
They hoped to raise ₹2,200 crore, then trimmed the goal to ₹1,600 crore (about $183 million), but still didn't see enough investor interest to move forward.
Investors are extra cautious toward shadow banking sector
The green light they got for their IPO last August is about to expire, so if they want to try again, they'll need to restart the approval process.
SK Finance mainly serves people with limited access to banks—a group that's more vulnerable when interest rates climb.
The decision reflects how investors are being extra cautious right now toward India's shadow banking sector.