SK Finance Ltd, a non-deposit taking non-banking finance company middle layer (NBFC ML), said its growth plans are back on track after the abeyance on the Initial Public Offering (IPO) was recently lifted by Securities & Exchange Board of India (SEBI). 

The company said it would increase penetration and distribution network in existing markets and diversifying into contiguous markets. It has been growing its branch network over the years and aims to further deepen the reach, expand presence in new geographies, and increase penetration in a calibrated manner in states where it entered recently.   

The company, which is operating in vehicle financing and Micro, Small and Medium Enterprises (MSME) financing verticals, plans to use part of its fresh funds from the net proceeds towards future branch and business expansion, it said. 

SK Finance follows a hub and spoke model in expanding across regions, where it designates district-level branches as the hub branch, which manages multiple spoke branches. 

As of December 31, 2023, the company has a network of 535 branches across India. Its MSME business is operated only from 322 branches of the existing branch network. 

The company plans to leverage its geographic presence and distribution network to take advantage of the large addressable market to grow its MSME financing vertical by gradually providing MSME financing from existing untapped branch network, it said.