Veritas Finance IPO

Veritas Finance Ltd. has received approval from the Securities and Exchange Board of India (SEBI) to launch its Initial Public Offering (IPO). The approval was granted on April 29, 2025, and is valid for 12 months. The company plans to launch the IPO after completing the required formalities, subject to market conditions. 

The ₹2,800 crore IPO will be a book-built issue, comprising a fresh issue of shares worth ₹600 crore and an offer for sale (OFS) of ₹2,200 crore. 

The company's shares are proposed to be listed on the NSE and BSE. ICICI Securities Ltd. is the book-running lead manager for the issue, while Kfin Technologies Ltd. has been appointed as the registrar. The IPO dates, price band, and lot size have not been announced yet.

About Veritas Finance 

Veritas Finance is a RBI-registered, non-deposit-taking NBFC that was incorporated in 2015. The company provides loans to underserved and underbanked borrowers, with a strong focus on micro, small and medium enterprises (MSMEs) and self-employed individuals who often struggle to access credit from traditional banks. Instead of relying only on formal financial documents, Veritas Finance also evaluates customers through field visits, cash flow assessments and local business references. 

The company offers a wide range of secured loan products, including MSME and business loans, affordable home loans, and used commercial vehicle loans. It follows a "phygital" model that combines its extensive branch network with digital lending tools to improve customer access and speed up loan processing. As of the latest available data, Veritas Finance manages assets worth over ₹9,134 crore, serves more than 2.31 lakh active customers, and operates over 500 branches across 10 states and one Union Territory with a workforce of more than 8,300 employees. 

Backed by investors such as Lok Capital, Evolvence and Avendus Future Leaders Fund, Veritas Finance is focused on expanding its presence in India's fast-growing MSME lending market. The company aims to provide formal financing to borrowers who would otherwise depend on informal sources of credit. 

Industry Outlook

1. India's MSME sector continues to face a significant credit gap, creating strong demand for formal lenders as borrowers shift away from informal sources of finance.
2. Credit demand is expected to grow faster in semi-urban and rural areas, supported by increasing digital adoption, GST-led formalisation, and rising business activity.
3. With tighter RBI regulations on unsecured loans, the industry is witnessing stronger growth in secured lending segments such as MSME loans, affordable housing finance, and used commercial vehicle loans.
4. A combination of branch-led customer engagement and digital underwriting is emerging as an effective model for serving borrowers with limited financial documentation while maintaining credit quality.

Veritas Finance IPO Objectives

1. The company plans to raise up to ₹900 crore through a fresh issue of shares. The net proceeds will be used to strengthen Veritas Finance's capital base and support future business growth.
2. The funds will be used for onward lending across its key segments, including MSME loans, affordable home loans, and used commercial vehicle loans. The capital will also help the company maintain the capital adequacy levels required by the Reserve Bank of India (RBI).
3. The OFS consists of up to 1.28 crore equity shares being sold by existing shareholders. The company will not receive any proceeds from the OFS. The sale proceeds will go directly to the selling shareholders. A portion of the issue proceeds will be used to meet IPO-related expenses, including merchant banker fees, legal and regulatory costs, marketing expenses, and listing fees.
4. Veritas Finance may raise up to ₹180 crore through a pre-IPO placement. If completed, the amount raised will reduce the size of the fresh issue accordingly.

Financial Performance of Veritas Finance

Veritas Finance Peer Comparison

Strengths and Opportunities for Veritas Finance IPO 

1. Assets Under Management (AUM) have grown rapidly, reflecting strong demand for the company's lending products.
2. High portfolio yields support strong net interest margins despite rising funding costs.
3. Most loans are backed by property or vehicles, helping reduce credit losses.
4. Gross NPAs have remained below 2%, indicating disciplined underwriting and collections.
5. It operates over 500 branches across 10 states and 1 Union Territory, giving it a strong presence in underserved markets.
6. It is well-positioned to benefit from India's significant MSME credit gap.
7. It uses a proprietary underwriting model combining digital analytics with field-based assessments to evaluate borrowers.

Risks and Threats for Veritas Finance IPO 

1. A sizeable share of customers have limited formal credit history, increasing credit risk during economic slowdowns.
2. A significant portion of the loan book is concentrated in Tamil Nadu, exposing the company to regional risks.
3. Lending to informal businesses increases operational and collection risks.
4. The unsecured working capital loan segment carries relatively higher default risk.
5. Rising borrowing costs could impact profitability, as the company relies on bank borrowings and market debt.
6. With no identifiable promoter, business continuity depends on the management team and institutional investors.
7. The company will not receive funds from the Offer for Sale, as the proceeds will go to existing shareholders.
8. It faces competition from established NBFCs and small finance banks in the MSME lending space.

Veritas Finance IPO Reservation

Veritas Finance IPO Promoter Holding

The shareholding structure between the promoters of the company and are not identifiable, at the time of writing this blog. 

Veritas Finance IPO Registrar and Lead Managers

Veritas Finance IPO Lead Managers

1. ICICI Securities Ltd.
2. HDFC Bank Ltd.
3. Jefferies India Pvt.Ltd.
4. Kotak Mahindra Capital Co.Ltd.
5. Nuvama Wealth Management Ltd.

Registrar for Veritas Finance IPO 

Name: Kfin Technologies Ltd. 

Phone: 040-79615565

Email: veritas.ipo@kfintech.com

How To Check the Allotment Status of the Veritas Finance IPO?

Steps to check IPO allotment status on Angel One’s app:

1. Log in to the Angel One app.
2. Go to the IPO Section and then to IPO Orders.
3. Select the individual IPO that you had applied for and check the allotment status.
4. Angel One will notify you of your IPO allotment status via push notification and email.

How To Apply for Veritas Finance IPO  Online?

1. Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
2. Locate the IPO Section: Navigate to the 'IPO' section on the platform.
3. Select IPO: Find and select the Veritas Finance IPO from the list of open IPOs.
4. Enter the Lot Size: Specify the number of lots you want to bid for.
5. Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
6. Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.

Contact Details of Veritas Finance IPO 

Address: SKCL Central Square 1, South and North Wing, 7th Floor, Unit # C28 - C35, CIPET Road, Thiru Vi, Thiru Vi ka Industrial Estate, Chennai, Tamil Nadu, 600032

Phone: +91 044 4615 001

Email ID: cs@veritasfin.in