Veritas Finance Refiles IPO: NBFC Lowers Offer Size to Rs 900 Crore Amid Strong Growth and Investor Backing
Chennai-based Veritas Finance has refiled its preliminary Initial Public Offering (IPO) documents with the Securities and Exchange Board of India (SEBI), significantly revising its offer structure. The NBFC, backed by marquee investors Norwest Venture Partners and Kedaara Capital, aims to raise Rs 900 crore through a fresh issue of shares in this revised filing, dated July 29.This move comes as the company prepares for market scrutiny, especially given that the current filing is close to the expiration of validity for earlier SEBI approval documents. Previously, Veritas Finance had targeted an IPO raising up to Rs 2,800 crore, which included a fresh issuance component and an offer-for-sale (OFS).
Revised Offer Details and Shareholding Structure
The revised DRHP now specifies that the company plans to raise Rs 900 crore via the fresh equity issue. Additionally, existing shareholders are expected to sell up to 1.28 crore equity shares through the dedicated offer-for-sale tranche.
Among the key sellers in the O&S portion are Investors Lok Capital Growth Fund and British International Investment plc, which is backed by the UK Government. Other participants include D Arulmany, Vidya Arulmany, and Growth Catalyst Partners LLC.
Norwest Venture Partners remains the largest shareholder, holding a 21.58 percent stake in the NBFC. Kedaara Capital Fund holds a 15.08 percent stake, followed by British International Investment at 10.33 percent and Lok Capital at 9.48 percent.
Financial Performance Highlights of Veritas Finance
Veritas Finance, which was incorporated in 2015, operates as a retail-focused NBFC specializing in micro, small, and medium enterprises (MSMEs). Its primary lending focus areas include housing loans, working capital loans, self-employed individual support, and used commercial vehicle loans.
The company demonstrated robust growth metrics during the fiscal year ending March 2026. Loans (Assets Under Management or AUM) increased by 24.3 percent, reaching Rs 9,134 crore from Rs 7,348.6 crore in the previous financial year.
Growth Metrics and Fund Utilization Strategy
The disbursements during the fiscal period also saw a healthy increase of 16.4 percent, amounting to Rs 4,579.5 crore compared to the prior period's disbursement figure of Rs 3,933.1 crore. This confirms sustained lending activity in targeted segments.
Net profit for Veritas Finance rose by 12 percent to Rs 330.4 crore. Furthermore, net interest income increased 18 percent, reaching Rs 1,133.5 crore compared to the previous year.
The funds raised from the fresh issue are specifically earmarked for augmenting the company's capital base. This strategic infusion will support future business requirements and enhance onward lending capabilities.
IPO Process Management and Merchant Bankers
The NBFC is currently undertaking a concentrated effort to capitalize on market interest despite the reduced offer size compared to initial plans. The merchant banking team handling Veritas Finance has seen changes in structure for this IPO process.
ICICI Securities, IIFL Capital Services, JM Financial, and SBI Capital Markets are among the companies listed as fresh book running lead managers for the venture. Veritas Finance continues to benchmark its performance against peer NBFCs such as Aavas Financiers, Five Star Business Finance, SBFC Finance, Sundaram Finance, and Aptus Value Housing Finance India.
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