SK Finance Limited IPO

The company's business is primarily focused on used vehicle financing and any adverse development in this sector or in government policies affecting this industry could affect its business, cash flows and results of operations.

A majority of its business operations involve transactions with mid to low-income retail customers in rural and semi-urban areas of India who are susceptible to adverse economic conditions. Any default from such customers could adversely affect its business, cash flows, financial condition and results of operations.

The risk of non-payment or default by its customers may adversely affect the company's business, financial condition, cash flows and results of operations.

Its inability to recover the full value of vehicle collateral or amounts outstanding under defaulted vehicle financing loans in a timely manner or at all could adversely affect its business, financial condition, cash flows and results of operations.

The company requires substantial capital for its business and any disruption in the company's sources of funding could adversely affect its liquidity, business, cash flows, results of operations and financial condition.

As on December 31, 2023, 75.79% of its Assets Under Management were located in the states of Rajasthan, Madhya Pradesh and Gujarat in India. Accordingly, its operations are concentrated in these three states and any adverse developments in these regions could have an adverse effect on its business, cash flows and results of operations.

The company is subject to periodic inspection by the Reserve Bank of India. Non-compliance with the observations of the Reserve Bank of India could adversely affect its business, financial condition, results of operations and cash flows.

Though the company has experienced growth in recent years, its may not be able to sustain the company's growth effectively.

System failures or inadequacy and security breaches in information technology systems may adversely affect itsr business and reputation.

The company provide loans to micro, small and medium enterprises and any adverse development in this sector or in government policies affecting this sector could affect its business, cash flows and results of operations.