Key Takeaways
- • Neo Secondaries Fund and Kenro Capital are expected to acquire a combined stake worth about ₹400 crore (roughly $50-60 million) in Jaipur-based NBFC SK Finance from early investors, according to two people familiar with the matter cited by Mint.
- • Long-term backers TPG and Norwest Venture Partners, which have held their stakes for eight to nine years, are expected to be among the selling shareholders.
- • The transaction is a partial exit in the private markets, more than a year after SK Finance shelved a planned IPO that had targeted about ₹2,200 crore.
- • Talks are still underway, and none of the parties has confirmed terms. SK Finance, Norwest and Kenro did not respond to requests for comment, while TPG and Neo declined to comment.
Summary
Neo Secondaries Fund and Kenro Capital are in talks to acquire a combined ₹400 crore stake in SK Finance, a non-banking financial company based in Jaipur, as some of the lender's early investors explore partial exits, according to two people familiar with the matter cited by Mint. Long-term backers TPG and Norwest Venture Partners, which have held their stakes for eight to nine years, are expected to be among the selling shareholders. The conversations are ongoing, and the final terms have not been disclosed.
Mint first reported in July on early investors' discussions with Kenro Capital about a partial stake sale in a $50-60 million deal. The latest reporting indicates that Neo Secondaries Fund is expected to join Kenro in the transaction. Neo Asset Management announced the first close of its ₹2,000 crore Neo Secondaries Fund on July 31, 2025, after raising ₹750 crore, with a mandate to target secondary stakes in profitable companies. Kenro Capital describes itself as the first fund dedicated to growth secondaries in India and Southeast Asia.
The secondary sale comes more than a year after SK Finance filed preliminary papers for an IPO in 2024, seeking to raise about ₹2,200 crore. That offering was dominated by an offer for sale from existing investors and promoters, with a small primary component. The company had received regulatory approval for the listing and reduced its offer size before postponing the plans, citing unfavourable market conditions, valuation concerns and subdued investor sentiment. India Ratings has said the company is likely to revisit its listing once market conditions improve. Valuations in the secured lending space have improved somewhat since the postponement, according to the same reporting.
SK Finance, Norwest and Kenro did not respond to requests for comment at the time of publication, and TPG and Neo declined to comment. Because the deal remains under negotiation, the stake size, pricing and final buyer lineup could change.
Mint first reported in July on early investors' discussions with Kenro Capital about a partial stake sale in a $50-60 million deal. The latest reporting indicates that Neo Secondaries Fund is expected to join Kenro in the transaction. Neo Asset Management announced the first close of its ₹2,000 crore Neo Secondaries Fund on July 31, 2025, after raising ₹750 crore, with a mandate to target secondary stakes in profitable companies. Kenro Capital describes itself as the first fund dedicated to growth secondaries in India and Southeast Asia.
The secondary sale comes more than a year after SK Finance filed preliminary papers for an IPO in 2024, seeking to raise about ₹2,200 crore. That offering was dominated by an offer for sale from existing investors and promoters, with a small primary component. The company had received regulatory approval for the listing and reduced its offer size before postponing the plans, citing unfavourable market conditions, valuation concerns and subdued investor sentiment. India Ratings has said the company is likely to revisit its listing once market conditions improve. Valuations in the secured lending space have improved somewhat since the postponement, according to the same reporting.
SK Finance, Norwest and Kenro did not respond to requests for comment at the time of publication, and TPG and Neo declined to comment. Because the deal remains under negotiation, the stake size, pricing and final buyer lineup could change.
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