Veritas Finance Ltd, a non-deposit taking non-banking financial company (NBFC), has refiled preliminary papers with the Securities and Exchange Board of India (Sebi) for a new initial public offering. The company has submitted a fresh draft red herring prospectus (DRHP) to the capital markets regulator, marking a key step in restarting its IPO process. The latest submission was made just before the regulatory approval for the company’s earlier IPO proposal was due to expire.
According to the newly filed DRHP, the proposed IPO structure comprises a fresh issue of equity shares and an offer for sale component. With this refiling, Veritas Finance is again positioning itself to access the equity capital markets, subject to regulatory clearance and prevailing market conditions.
Fresh Issue of ₹900 Crore and Offer for Sale
The refiled IPO papers set out a fresh issue of equity shares aggregating up to ₹900 crore, intended to bring new capital into the company through the sale of newly issued shares to public investors. In addition to the fresh issue, the proposed offering includes an offer for sale of up to 1.28 crore equity shares by existing shareholders, providing current investors a partial exit or monetisation opportunity.
The exact valuation, price band, and final size of the IPO will be determined at a later stage in line with regulatory procedures and market practice. Investors looking to participate in such offerings typically need to open demat account with a registered depository participant before the issue opens.
How the New Proposal Differs from the Earlier ₹2,800 Crore Plan
The refiling marks a significant departure from Veritas Finance’s earlier proposal. In January 2025, the company had filed draft papers with SEBI for a much larger ₹2,800 crore IPO, comprising a fresh issue of ₹600 crore and an offer for sale worth ₹2,200 crore. Sebi had issued its observation letter on that earlier DRHP in April 2025, granting the company the regulatory go-ahead to proceed with the public issue.
The newly refiled documents reflect a considerably more moderate offering structure, anchored by a ₹900 crore fresh issue and a smaller offer for sale of up to 1.28 crore shares. The latest filing has been made just ahead of the expiry of Sebi’s earlier approval, indicating that Veritas Finance has chosen to move forward with a revised capital raising plan rather than proceed with the previously cleared structure.
Pre-IPO Placement Option and Use of Net Proceeds
The fresh DRHP also states that Veritas Finance may undertake a pre-IPO placement of specified securities aggregating up to ₹180 crore. If such a placement is executed prior to the public issue, the size of the fresh issue in the IPO will be reduced by the amount raised through the placement, effectively adjusting the ₹900 crore fresh issue size downward accordingly.
The net proceeds from the fresh issue are proposed to be used to augment the company’s capital base, supporting future business requirements including onward lending activities. By increasing its capital base through the IPO, the company aims to strengthen its financial capacity to continue providing loans and credit products to its target customer segments. Any stock investment decision by prospective investors would need to be evaluated in the context of the company’s stated use of proceeds and business model.
Business Profile and Recent Financial Performance
Veritas Finance was founded in 2015 and operates as a retail-focused non-deposit taking NBFC, primarily providing business loans to micro, small, and medium enterprises (MSMEs) and self-employed individuals. The company’s product portfolio includes home loans, used commercial vehicle loans, and working capital loans. It is classified as an NBFC-Middle Layer under the prevailing regulatory framework.
Key financial and operational highlights as of and for the financial year ended March 31, 2026, are summarised in the table below:
| Metric | Details |
|---|---|
| Assets Under Management (AUM) | ₹9,134 crore |
| AUM CAGR (FY2023-24 to FY2025-26) | 26.33% |
| Net Profit (FY2025-26) | ₹330.3 crore |
| Disbursements (FY2025-26) | ₹4,579.5 crore |
| Branches (as of March 2026) | 444 (excluding service centres) |
| Geographic Presence | 10 states and 1 Union Territory |
The company has a notable presence in Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, and West Bengal.
Lead Managers and Next Steps in the IPO Process
The refiled DRHP lists ICICI Securities, IIFL Capital Services, JM Financial, and SBI Capital Markets as the book-running lead managers for the proposed issue. These investment banks will oversee key aspects of the IPO process, including investor outreach, marketing, and coordination with regulators and stock exchanges.
With the submission of the new draft papers to SEBI, Veritas Finance has moved into the next phase of its revised IPO plan. The process will follow the standard regulatory framework for public issues in India, with the company working alongside its lead managers to prepare for a potential listing once Sebi completes its review of the latest DRHP. Investors monitoring the issue may wish to evaluate the offering through a registered trading platform once the issue details are formally announced.
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