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Veritas Finance Refiles IPO Draft, Aiming to Raise Rs 900 Crore in Fresh Issue
In a bid to keep its capital‑raising momentum, Veritas Finance Ltd has refiled its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The new filing proposes a fresh equity issue of Rs 900 crore and an offer‑for‑sale (OFS) of up to 1.28 crore shares by existing shareholders.
The re‑filing comes as the company’s earlier IPO proposal, approved by SEBI in April 2025, is approaching the expiry of its regulatory approval. In January 2025, Veritas had submitted a DRHP that sought to raise a total of Rs 2,800 crore – a fresh issue of Rs 600 crore and an OFS of Rs 2,200 crore. The latest draft reduces the fresh issue to Rs 900 crore but retains the same OFS size.
In addition to the fresh issue and OFS, the DRHP allows Veritas to conduct a pre‑IPO placement of up to Rs 180 crore in specified securities. If the placement is completed, the fresh issue size will be reduced by the amount raised, keeping the total capital raised at the level indicated in the draft.
The company plans to use the net proceeds from the fresh issue to strengthen its capital base, enabling it to meet future business requirements and expand onward lending. Veritas, founded in 2015, has diversified its product mix to include home loans, used commercial vehicle loans and working‑capital loans, alongside its core MSME lending.
As of March 31 2026, Veritas reported assets under management (AUM) of Rs 9,134 crore, a compound annual growth rate of 26.33 % between FY24 and FY26. The FY26 profit stood at Rs 330.3 crore, while disbursements reached Rs 4,579.5 crore. The NBFC operates 444 branches (excluding service centres) across ten states and one Union Territory, with a strong presence in Tamil Nadu, Andhra Pradesh, Telangana, Karnataka and West Bengal.
The IPO will be book‑run by ICICI Securities, IIFL Capital Services, JM Financial and SBI Capital Markets. The selection of these lead managers reflects the company’s intent to tap a broad investor base and leverage the expertise of established market makers.
SEBI’s observation letter, issued in April 2025, cleared Veritas to launch the public issue after the company addressed the regulator’s comments. The re‑filing is timed to avoid the lapse of the approval granted for the earlier proposal, ensuring continuity of the company’s capital‑raising plans.
Veritas’s move to raise capital through an IPO aligns with a broader trend of NBFCs seeking market‑based funding to support growth in the underserved MSME segment. By raising fresh equity, the company aims to increase its lending capacity while providing a liquidity option for existing shareholders through the OFS.
The DRHP has been filed with SEBI and is pending review. No pricing or listing date has been announced. Investors will need to monitor SEBI’s final approval and the company’s subsequent pricing announcement. The IPO’s success will depend on market sentiment towards NBFCs, the company’s financial health, and its ability to demonstrate continued profitability and disciplined risk management.
Veritas Finance’s re‑filing marks a significant step in its capital‑raising journey. The company’s next milestones will include SEBI’s final approval, pricing of the fresh issue, and the execution of the pre‑IPO placement, if chosen. These developments will shape the company’s ability to expand lending and strengthen its position in India’s competitive financial services market.
The re‑filing comes as the company’s earlier IPO proposal, approved by SEBI in April 2025, is approaching the expiry of its regulatory approval. In January 2025, Veritas had submitted a DRHP that sought to raise a total of Rs 2,800 crore – a fresh issue of Rs 600 crore and an OFS of Rs 2,200 crore. The latest draft reduces the fresh issue to Rs 900 crore but retains the same OFS size.
In addition to the fresh issue and OFS, the DRHP allows Veritas to conduct a pre‑IPO placement of up to Rs 180 crore in specified securities. If the placement is completed, the fresh issue size will be reduced by the amount raised, keeping the total capital raised at the level indicated in the draft.
The company plans to use the net proceeds from the fresh issue to strengthen its capital base, enabling it to meet future business requirements and expand onward lending. Veritas, founded in 2015, has diversified its product mix to include home loans, used commercial vehicle loans and working‑capital loans, alongside its core MSME lending.
As of March 31 2026, Veritas reported assets under management (AUM) of Rs 9,134 crore, a compound annual growth rate of 26.33 % between FY24 and FY26. The FY26 profit stood at Rs 330.3 crore, while disbursements reached Rs 4,579.5 crore. The NBFC operates 444 branches (excluding service centres) across ten states and one Union Territory, with a strong presence in Tamil Nadu, Andhra Pradesh, Telangana, Karnataka and West Bengal.
The IPO will be book‑run by ICICI Securities, IIFL Capital Services, JM Financial and SBI Capital Markets. The selection of these lead managers reflects the company’s intent to tap a broad investor base and leverage the expertise of established market makers.
SEBI’s observation letter, issued in April 2025, cleared Veritas to launch the public issue after the company addressed the regulator’s comments. The re‑filing is timed to avoid the lapse of the approval granted for the earlier proposal, ensuring continuity of the company’s capital‑raising plans.
Veritas’s move to raise capital through an IPO aligns with a broader trend of NBFCs seeking market‑based funding to support growth in the underserved MSME segment. By raising fresh equity, the company aims to increase its lending capacity while providing a liquidity option for existing shareholders through the OFS.
The DRHP has been filed with SEBI and is pending review. No pricing or listing date has been announced. Investors will need to monitor SEBI’s final approval and the company’s subsequent pricing announcement. The IPO’s success will depend on market sentiment towards NBFCs, the company’s financial health, and its ability to demonstrate continued profitability and disciplined risk management.
Veritas Finance’s re‑filing marks a significant step in its capital‑raising journey. The company’s next milestones will include SEBI’s final approval, pricing of the fresh issue, and the execution of the pre‑IPO placement, if chosen. These developments will shape the company’s ability to expand lending and strengthen its position in India’s competitive financial services market.
