New Delhi, November 9, 2026: Veritas Finance Ltd, a non-deposit-taking non-banking financial company (NBFC), has received the Securities and Exchange Board of India's (Sebi) approval to launch its initial public offering (IPO), comprising a fresh issue of equity shares worth Rs 900 crore, according to an update by the markets regulator on Monday.
The proposed IPO will also include an offer for sale (OFS) of up to 1.28 crore equity shares by existing shareholders, according to the draft red herring prospectus (DRHP).
The company had refiled its preliminary papers with Sebi in July. After examining the draft documents, the regulator issued its final observations on October 19, paving the way for the public issue, 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.
Earlier IPO Proposal
In January 2025, the retail-focused NBFC had filed draft papers with Sebi to raise Rs 2,800 crore through an IPO, comprising a fresh issue of shares worth Rs 600 crore and an OFS of Rs 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 Rs 180 crore. If completed, the size of the fresh issue will be reduced to the extent of funds raised through the pre-IPO placement.
Utilisation Of IPO Proceeds
The net proceeds from the fresh issue will be used to augment the company's capital base to meet future business requirements, including onward lending.
Founded in 2015, Veritas Finance provides small business loans to micro, small and medium enterprises (MSMEs) and self-employed individuals. It has also expanded into home loans, used commercial vehicle loans and working capital loans.
Financial Performance And Operations
As of March 31, 2026, the company's assets under management (AUM) stood at Rs 9,134 crore, reflecting a compound annual growth rate (CAGR) of 26.33 per cent between FY24 and FY26.
For FY26, the company reported a profit of Rs 330.3 crore and disbursements of Rs 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.
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ICICI Securities, IIFL Capital Services, JM Financial and SBI Capital Markets are the book-running lead managers to the issue.
(Disclaimer: Except for the headline, this article has not been edited by FPJ's editorial team and is auto-generated from an agency feed.)
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