Upcoming IPO: Veritas Finance gets SEBI approval to launch public offer

Non-deposit-taking non-banking financial company (NBFC) Veritas Finance has secured market regulator Securities and Exchange Board of India's (SEBI's) approval to launch its initial public offering.

The proposed initial share sale is a mix of a fresh issuance of ₹900 crore and an offer for sale (OFS) component of 12,827,093 shares by investors Lok Capital Growth Fund, British International Investment plc, Growth Catalyst Partners LLC, Vidya Arulmany and D Arulmany.

The company had refiled its draft documents with SEBI in July. After examining the preliminary papers, the regulator issued its final observations on October 19, the update showed.

The latest draft papers' filing came just ahead of the expiry of the regulatory approval granted for the company's earlier IPO proposal.

In January 2025, the retail-focused NBFC had filed DHRP with SEBI to raise ₹2,800 crore through an IPO, consisting of a fresh issue of shares valued at ₹600 crore and an OFS of ₹2,200 crore.

SEBI had issued its observation letter, enabling the company to launch the public issue in April 2025.

Going by the fresh draft papers, the company may also undertake a pre-IPO placement of specified securities aggregating up to ₹180 crore. If such placement takes place, the size of the fresh issue will be cut to the extent of funds raised through the pre-IPO placement.

The net proceeds from the fresh issue will be used to augment the company's capital base to meet future business requirements, including onwards lending.

"Our company expects to receive the benefits of listing of the equity shares on the Stock Exchanges, including the enhancement of our brand name among our existing and potential customers and creation of a public market for the equity shares in India," according to the DRHP.

Founded in 2015, Veritas Finance is an NBFC providing small business loans to micro, small and medium enterprises (MSMEs) and self-employed individuals. The firm has also expanded into home loans, working capital loans and used commercial vehicle loans.

As of March 31, 2026, its assets under management (AUM) were at ₹9,134 crore, reflecting a CAGR growth of 26.33% between FY24 and FY26.

For FY26, the company posted a profit of ₹330.3 crore and disbursements of ₹4,579.5 crore.

Veritas Finance, classified as an NBFC-Middle Layer, operated 444 branches, excluding service centres, across 10 states and one Union Territory, with a strong presence in Tamil Nadu, Andhra Pradesh, Telangana, Karnataka and West Bengal as of March 2026.

ICICI Securities, IIFL Capital Services, JM Financial and SBI Capital Markets are the book-running lead managers to the issue.

The company's shares will be listed on the NSE and the BSE.