Chennai-based Veritas Finance has refiled its preliminary papers with SEBI on July 29, 2026, with a revised offer structure that significantly reduces the total size to Rs 1,500 crore from the originally planned Rs 2,800 crore. The company proposed to raise Rs 900 crore through fresh share issuance, while existing shareholders will sell up to 1.28 crore equity shares via offer-for-sale. The fresh filing comes just before the expiry of the regulatory approval granted for the company's earlier IPO proposal, which had received SEBI's observation letter in April 2025. The company had approached capital markets in January 2025 with the aim to raise up to Rs 2,800 crore via initial public offering, comprising a fresh issuance of shares worth Rs 600 crore and an offer-for-sale of Rs 2,200 crore shares.
According to the latest financial data, Veritas Finance demonstrated strong growth momentum in FY26, with loan assets under management (AUM) increasing by 26.33 percent to Rs 9,134 crore as of March 31, 2026, reflecting a compound annual growth rate of 26.33 percent between FY24 and FY26. The company's disbursements rose to Rs 4,579.5 crore, growing 16.4 percent from Rs 3,933.1 crore in the same period. Net profit during FY26 grew by 12 percent to Rs 330.3 crore, while net interest income increased 18 percent to Rs 1,133.5 crore compared to the previous year. The company's net worth stands at Rs 3,150 crore as of March 2026, and it expects to seek valuation multiples in the range of 1.8x to 2.2x one-year forward price-to-book (P/B), broadly in line with current market valuations for the industry.
The company may undertake a pre-IPO placement of specified securities aggregating up to Rs 180 crore, which could reduce the size of the fresh issue proportionally. As per The Hindu BusinessLine, if completed, the size of the fresh issue will be reduced to the extent of funds raised through the pre-IPO placement. The net proceeds from the fresh issue will be utilized for augmenting the company's capital base to meet future business requirements towards onward lending. The revised IPO structure reflects the company's strategic focus on capital infusion rather than offering an exit option to existing investors. The company has appointed ICICI Securities, IIFL Capital Services, JM Financial, and SBI Capital Markets as fresh book running lead managers for the IPO, with the merchant bankers team having been changed from the previous structure.
Founded in April 2015, Veritas Finance provides business loans to micro, small and medium enterprises (MSMEs) and self-employed individuals, having expanded into home loans, used commercial vehicle loans and working capital loans. As of March 2026, the company operated 444 branches, excluding service centres, across 10 states and one Union Territory, with a strong presence in Tamil Nadu, Andhra Pradesh, Telangana, Karnataka and West Bengal. According to the latest DRHP filed on July 29, 2026, the company counts Norwest Venture Partners, which holds a 21.58 percent stake, as the biggest shareholder, followed by Kedaara Capital Fund (15.08 percent), British International Investment (10.33 percent), and Lok Capital (9.48 percent). The offer-for-sale will include shares from investors Lok Capital Growth Fund, UK Government-backed British International Investment plc, along with individuals D Arulmany, Growth Catalyst Partners LLC, and Vidya Arulmany.
