Veritas Finance Set To Raise Capital Via IPO, DRHP Refiled With Sebi - Key Details To Know

Chennai-based non-banking financial company (NBFC) Veritas Finance has refiled its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) on July 30. The revised filing follows the expiry of the Sebi approval received by the NBFC for its IPO.

Following the re-filing of the draft papers, here is a detailed look at the key aspects of the public issue and the company's business that investors should know:

Veritas Finance IPO: Offer Size and Selling Shareholders

According to the refiled draft papers, the offer size now comprises a fresh issue of equity shares worth up to Rs 900 crore, along with an Offer for Sale (OFS) of up to 12.8 million equity shares by existing shareholders. The company has adjusted its total offer size to Rs 1,500 crore, significantly moderated from a previously planned Rs 2,800 crore.

The face value of shares is Rs 10 per equity share. Existing shareholders participating in the OFS include Lok Capital Growth Fund, British International Investment plc, D Arulmany, Growth Catalyst Partners LLC, and Vidya Arulmany.

Veritas Finance IPO: Key Financials

For the fiscal year ended March 31, 2026, Veritas Finance reported a net profit of Rs 330.39 crore, growing nearly 12 per cent compared to Rs 295.11 crore in the preceding fiscal. The consolidated total income of the company grew by over 18 per cent to Rs 1844.21 crore compared to Rs 1550.67 crore in the preceding fiscal.

Veritas Finance: Business Model

Veritas Finance is a non-deposit-taking NBFC registered with the Reserve Bank of India (RBI). The NBFC primarily provides credit to underserved and underbanked borrowers and focuses on micro, small, and medium enterprises (MSMEs) and self-employed individuals with limited access to formal financing. The company’s lending portfolio includes rural business loans, affordable home loans, used commercial vehicle loans, and unsecured working capital loans across rural, semi-urban, and urban markets. Rural business loans have consistently made up a bulk of the company’s total loan assets under management (AuM). In the last three fiscal years, FY26, FY25 and FY24, the rural business loans made up 64.67 per cent, 69.37 per cent and 74.94 per cent of the total loan AuM.

Veritas Finance: Competitors

Veritas Finance operates in the highly competitive NBFC sector and competes with other lenders that cater specifically to the MSME, vehicle finance, and affordable housing markets. The company’s listed competitors include Five-Star Business Finance and SBFC Finance.

Veritas Finance IPO: Should You Apply?

Investors interested should know key details related to the company’s upcoming public issue:

Veritas Finance IPO: Key Risks

• The NBFC’s business involves exposure to high credit risk, first-time borrowers in underserved households and businesses in India.

• Non-payment or defaults by our borrowers may lead to increased levels of Gross Carrying Amount-Loans, which could adversely affect the company’s business, financial condition, results of operations and cash flows.

• The company needs substantial funds for its business; its total borrowings as of March 31, 2026, stood at Rs 7374.09 crore, and any disruption in the company’s sources of funds could adversely affect its business.

Veritas Finance IPO: Key Strengths

• The firm has demonstrated sustainable earnings growth, evidenced by a net profit of Rs 330.39 crore in FY26.

• The company maintains a strong and expanding credit operation with loan assets under management totalling Rs 9,134.29 crore.

Veritas Finance IPO: Objective

The company proposes to use the net proceeds from the fresh issue towards augmenting its capital base. The capital injection is designed to support the firm's future lending requirements and business expansion.