Veritas Finance got SEBI approval to launch its initial public offering. The Chennai-based NBFC, backed by Norwest Venture Partners and Kedaara Capital, refiled its papers on July 29. The company plans to raise Rs 900 crore through a fresh issue, while existing shareholders will sell 1.28 crore equity shares.
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Veritas Finance, a Chennai-based non-banking financial company (NBFC), has received approval from the Securities and Exchange Board of India (SEBI) to proceed with its initial public offering (IPO).
The company, backed by Norwest Venture Partners and Kedaara Capital, refiled its draft IPO papers with the capital markets regulator on July 29, 2026, with a revised offer structure.
According to SEBI's processing status of draft offer documents published on November 9, the regulator issued its observations on Veritas Finance's draft prospectus on October 19, 2026.
The issuance of observations allows the company to proceed with the IPO process and file its red herring prospectus (RHP) with the Registrar of Companies (RoC), disclosing details such as the IPO opening dates and final issue structure.
The professionally managed NBFC plans to raise Rs 900 crore through a fresh issue of equity shares, while existing shareholders will sell up to 1.28 crore equity shares through an offer for sale (OFS).
Investors Lok Capital Growth Fund and UK government-backed British International Investment plc, along with individuals D Arulmany, Growth Catalyst Partners LLC and Vidya Arulmany, will be among the selling shareholders in the OFS.
Earlier, Veritas Finance had filed its draft IPO papers in January 2025, aiming to raise up to Rs 2,800 crore through the public issue. Subsequently, SEBI approved the draft offer document in April 2025. However, the company did not proceed with its IPO plans at the time.
As part of the fresh issue, Veritas Finance may consider raising up to Rs 180 crore through a pre-IPO placement. If the company undertakes such a placement before filing the RHP with the RoC, the fresh issue size will be reduced accordingly.
The net proceeds from the fresh issue will be utilised to augment the company's capital base and meet future business requirements, including onward lending.
Norwest Venture Partners, with a 21.58 percent stake, is the largest shareholder in Veritas Finance, followed by Kedaara Capital Fund (15.08 percent), British International Investment (10.33 percent), and Lok Capital, founded by Rajiv Lall and Vishal Mehta, with a 9.48 percent stake.
Incorporated in 2015, Veritas Finance is a retail-focused NBFC primarily catering to micro, small and medium enterprises (MSMEs) and self-employed individuals. It offers a range of financial products, including small business loans, housing loans, used commercial vehicle loans and working capital loans.
For the financial year ended March 2026, the company's net profit increased 12 percent year-on-year to Rs 330.4 crore, while net interest income (NII) rose 18 percent to Rs 1,133.5 crore, compared with the previous financial year.
The company's assets under management (AUM) increased 24.3 percent to Rs 9,134 crore in FY26 from Rs 7,348.6 crore in the previous year. Disbursements rose 16.4 percent to Rs 4,579.5 crore from Rs 3,933.1 crore during the same period.
Veritas Finance considers listed companies such as Five-Star Business Finance, SBFC Finance, Aavas Financiers, Aptus Value Housing Finance India and Sundaram Finance among its comparable peers.
ICICI Securities, IIFL Capital Services, JM Financial and SBI Capital Markets are the merchant bankers managing the Veritas Finance IPO.