Veritas Finance files DRHP with SEBI to launch IPO; check details

Veritas Finance has filed its draft red herring prospectus with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The company is a diversified, retail-focused, non-deposit-taking NBFC registered with the Reserve Bank of India and classified as an NBFC-Middle Layer under the RBI’s scale-based regulations.

The IPO comprises a fresh issue of equity shares aggregating up to Rs 900 crore and an offer for sale of up to 12,827,093 equity shares by the selling shareholders. The face value of each equity share is Rs 10. The company said the net proceeds from the fresh issue will be used to augment its capital base for future business requirements and to support onward lending.

Veritas Finance, in consultation with the book running lead managers, may also consider a pre-IPO placement of specified securities aggregating up to Rs 180 crore before filing the red herring prospectus with the Registrar of Companies. If undertaken, the pre-IPO placement will be priced in consultation with the book running lead managers, and the amount raised will be reduced from the fresh issue.

Established in 2015, Veritas Finance primarily provides small business loans to micro, small and medium enterprises and self-employed individuals. Over the years, it has expanded its business to include home loans and used commercial vehicle loans.

As of March 31, 2026, the company’s loans under management stood at Rs 9,134.2 crore, up at a CAGR of 26.33 per cent between FY24 and FY26. Its profit for FY26 was Rs 330.3 crore, growing at a CAGR of 16.11 per cent over the same period, while disbursements for FY26 rose to Rs 4,579.5 crore at a CAGR of 11.22 per cent between FY24 and FY26.

The company said it focuses on meeting the financial needs of underserved and underbanked MSMEs and individuals by providing access to credit. Its product portfolio includes small business loans, housing loans, used commercial vehicle loans and working capital loans.

As of March 31, 2026, it had a branch network of 444 branches, excluding service centres, across 10 states and one Union Territory, with a well-established presence in Tamil Nadu, Andhra Pradesh, Telangana, Karnataka and West Bengal.

The equity shares are proposed to be listed on BSE and NSE. ICICI Securities, IIFL Capital Services, JM Financial and SBI Capital Markets are the book running lead managers to the issue.