Veritas Finance Limited, a diversified retail-focused non-deposit-taking NBFC, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for its proposed initial public offering (IPO).
The public issue comprises a fresh issue of equity shares worth up to ₹900 crore and an offer for sale (OFS) of up to 1.28 crore equity shares by existing shareholders. Each equity share carries a face value of ₹10.
Founded in 2015, Veritas Finance primarily provides small business loans to micro, small and medium enterprises (MSMEs) and self-employed individuals. Over the years, the company has expanded its portfolio to include home loans and used commercial vehicle loans.
As of March 31, 2026, the company’s assets under management (AUM) stood at ₹9,134.2 crore, registering a compound annual growth rate (CAGR) of 26.33% between FY24 and FY26. Net profit for FY26 stood at ₹330.3 crore, growing at a CAGR of 16.11% during the same period, while annual disbursements increased to ₹4,579.5 crore.
The company plans to utilise the net proceeds from the fresh issue to strengthen its capital base, support future business requirements and expand its lending operations.
Veritas Finance may also undertake a pre-IPO placement of up to ₹180 crore before filing the Red Herring Prospectus with the Registrar of Companies. If completed, the amount raised through the pre-IPO placement will be deducted from the size of the fresh issue.
Focused on addressing the financing needs of underserved and underbanked customers, the company offers products such as small business loans, housing loans, working capital loans and used commercial vehicle loans.
As of March 31, 2026, Veritas Finance operated a network of 444 branches across 10 states and one union territory, with a strong presence in Tamil Nadu, Andhra Pradesh, Telangana, Karnataka and West Bengal.
The company’s equity shares are proposed to be listed on the BSE and the National Stock Exchange of India (NSE). ICICI Securities, IIFL Capital Services, JM Financial and SBI Capital Markets are the book-running lead managers to the issue.
