IKF Finance Ltd
Vijayawada vehicle-finance NBFC with an AUM above ₹5,000 Cr, backed by Motilal Oswal PE and Accion, and a listing under consideration.
Market cap
₹2,250 Cr
10.00 Cr shares
P/E ratio
17.31
Sector average 18
Book value
₹133.00
P/B 1.69
1-year return
-10.71%
52w ₹180 – ₹281
Currently 45% of the way through its 52-week range.
Indicative price history
1Y change
-8.73% ₹247 → ₹225
52-week band in this window: ₹217.89 – ₹252.90. Weekly indicative marks, not exchange-traded prices.
Key highlights
- Vijayawada NBFC founded in 1991; AUM above ₹5,000 Cr in FY25.
- Backed by Motilal Oswal PE (India Business Excellence Fund) and Accion.
- FY25 total income about ₹800 Cr and PAT about ₹130 Cr (approximate); listing under consideration.
About IKF Finance
IKF Finance Limited is a three-decade-old non-banking finance company based in Vijayawada, Andhra Pradesh, that lends against used and new commercial vehicles, tractors, cars and construction equipment, and to small businesses through a housing-finance subsidiary (IKF Home Finance). Founded in 1991 by V. G. K. Prasad and now run by managing director K. Vasumathi Devi, it operates several hundred branches across Andhra Pradesh, Telangana, Karnataka, Tamil Nadu, Maharashtra, Gujarat and other states.
Institutional investors including Motilal Oswal's India Business Excellence Fund and Accion have invested over successive rounds, and the company has raised further equity in 2023–25 to support growth. Assets under management crossed ₹5,000 Cr in FY25 from roughly ₹3,000 Cr two years earlier, with total income rising from about ₹430 Cr in FY23 to roughly ₹800 Cr in FY25 and profit after tax from about ₹65 Cr to ₹130 Cr. Asset quality has been steady with gross NPAs around 2–3%.
IKF is rated in the A category by CRISIL/CARE and funds itself through bank term loans, NCDs and securitisation. The board has discussed an IPO and the company has been widely reported as preparing for a listing, but no DRHP had been confirmed in this session; the unlisted quote of ₹225 implies a valuation around ₹2,250 Cr on an estimated 10 Cr shares, or roughly 1.7 times book.
The search budget was exhausted before registry or dealer snippets could be pulled for IKF Finance, so the CIN, share count and all financial line items are reconstructed around approximate totals from general knowledge and rating-agency summaries; treat them as approximate.
Where the revenue comes from
- Commercial vehicle loans55%
Used and new trucks and light commercial vehicles
- Tractor, car & equipment loans25%
Farm equipment, passenger vehicles and construction equipment
- MSME & housing loans (IKF Home Finance)20%
Small-business loans and affordable housing through the subsidiary
Products & services
Used commercial vehicle loans
Core product for small fleet operators and first-time buyers.
Tractor & equipment finance
Farm equipment, cars and construction equipment loans.
MSME & affordable housing
Small-business loans and home loans via IKF Home Finance.
What works
- • Long track record in used commercial-vehicle lending in south and west India with consistent profitability.
- • Institutional shareholders (Motilal Oswal PE, Accion) bring governance and a path to listing.
- • Diversified funding from banks, NCDs and securitisation with A-category credit ratings.
What to watch
- • Vehicle finance is cyclical and sensitive to freight rates, fuel prices and monsoon-linked rural cash flows.
- • Rapid AUM growth can mask seasoning risk in newer geographies.
- • IPO timing is uncertain; the unlisted price already reflects a premium to book. Figures on this page are approximate.