Upcoming IPO: Veritas Finance gets Sebi nod to launch public issue – Top things for investors
Veritas Finance Ltd, a non-deposit-taking non-banking financial company (NBFC), has received approval from the Securities and Exchange Board of India (Sebi) to launch its initial public offering (IPO), comprising a fresh issue of equity shares worth ₹900 crore and an offer for sale (OFS) by existing shareholders.
According to the company's latest draft red herring prospectus (DRHP), the OFS component will involve the sale of up to 1.28 crore equity shares. The proposed public issue may also include a pre-IPO placement of specified securities worth up to ₹180 crore.
If the pre-IPO placement is completed, the size of the fresh issue will be reduced by the amount raised through the placement.
The company had refiled its preliminary IPO documents with Sebi in July, shortly before the regulatory approval for its earlier public issue proposal was due to expire.
The market regulator issued its final observations on October 19 after examining the revised draft papers, clearing the way for the company to proceed with its IPO.
Veritas Finance had initially filed its draft IPO papers in January 2025, seeking to raise ₹2,800 crore. That proposal comprised a fresh issue of shares worth ₹600 crore and an OFS of ₹2,200 crore. Sebi granted its approval for the earlier proposal in April 2025.
The revised issue structure significantly increases the fresh capital component while outlining a separate offer for sale by existing investors.
Veritas Finance plans to utilise the net proceeds from the fresh issue to strengthen its capital base and meet future business requirements, including providing loans to customers.
Founded in 2015, the company primarily caters to micro, small and medium enterprises (MSMEs), small business owners and self-employed individuals. Its lending portfolio includes business loans, home loans, used commercial vehicle financing and working capital loans.
The company focuses on providing credit to borrowers who may have limited access to formal financing channels.
Veritas Finance reported assets under management (AUM) of ₹9,134 crore as of March 31, 2026. Its AUM expanded at a compound annual growth rate (CAGR) of 26.33% between FY24 and FY26.
For FY26, the NBFC reported a profit of ₹330.3 crore, while its loan disbursements stood at ₹4,579.5 crore.
The company is classified as an NBFC-Middle Layer under the Reserve Bank of India's regulatory framework.
As of March 2026, Veritas Finance operated 444 branches, excluding service centres, across 10 states and one Union Territory.
Its operations are concentrated in southern and eastern India, with a significant presence in Tamil Nadu, Andhra Pradesh, Telangana, Karnataka and West Bengal.
ICICI Securities, IIFL Capital Services, JM Financial and SBI Capital Markets have been appointed as the book-running lead managers for the proposed IPO.
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