Chennai-based Veritas Finance has taken a significant step towards its public market debut, filing its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO).
The proposed IPO comprises a fresh issue of equity shares aggregating up to Rs 900 crore. Additionally, it includes an offer for sale (OFS) of up to 12,827,093 equity shares by the company's selling shareholders. The net proceeds from the fresh issue are intended to bolster Veritas Finance's capital base, supporting its future business expansion and onward lending activities.
Company Profile and Strategic Focus
Established in 2015, Veritas Finance operates as a diversified, retail-focused, non-deposit-taking NBFC. Registered with the Reserve Bank of India, it is classified as an NBFC-Middle Layer under the RBI’s scale-based regulations. The company primarily focuses on providing small business loans to micro, small, and medium enterprises (MSMEs) and self-employed individuals, particularly those in underserved and underbanked segments.
Over the years, Veritas Finance has expanded its product offerings to include home loans and used commercial vehicle loans, alongside its core small business and working capital loan portfolio.
Financial Performance and Network Growth
As of March 31, 2026, Veritas Finance reported impressive financial growth. Its loans under management stood at Rs 9,134.2 crore, demonstrating a compound annual growth rate (CAGR) of 26.33 percent between FY24 and FY26. Profit for FY26 reached Rs 330.3 crore, growing at a CAGR of 16.11 percent over the same period. Disbursements for FY26 amounted to Rs 4,579.5 crore, with a CAGR of 11.22 percent from FY24 to FY26.
The company boasts a robust operational footprint, with 444 branches (excluding service centers) spread across 10 states and one Union Territory as of March 31, 2026. It holds a strong presence in key regions such as Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, and West Bengal.
Listing Details and Lead Managers
The equity shares of Veritas Finance are proposed to be listed on both the BSE and the National Stock Exchange (NSE). The book running lead managers appointed for the issue are ICICI Securities, IIFL Capital Services, JM Financial, and SBI Capital Markets.
Veritas Finance also indicated the possibility of considering a pre-IPO placement of specified securities, potentially aggregating up to Rs 180 crore, in consultation with the book running lead managers. If undertaken, the amount raised through this pre-IPO placement would reduce the size of the fresh issue in the main IPO.