Veritas Finance IPO: Company Refiles DRHP with SEBI, Increases Fresh Issue to ₹900 Crore

Chennai-based non-banking financial company (NBFC) Veritas Finance has refiled its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for its Initial Public Offering (IPO). The revised filing comes just before the expiry of the SEBI approval received for its earlier IPO proposal. 

Under the revised structure, the IPO comprises a fresh issue of equity shares worth ₹900 crore and an offer-for-sale (OFS) of up to 1.28 crore equity shares by existing shareholders. The company had earlier filed IPO papers in January 2025, proposing a fresh issue of ₹600 crore and an OFS worth ₹2,200 crore. 

Veritas Finance IPO Revised IPO Structure 

The revised DRHP shows an increase in the fresh issue size from ₹600 crore to ₹900 crore, while the offer-for-sale has been restructured to up to 1.28 crore equity shares. 

The company may also raise up to ₹180 crore through a pre-IPO placement before filing the red herring prospectus with the Registrar of Companies. If such a placement is completed, the size of the fresh issue will be reduced accordingly. 

The proceeds from the fresh issue will be used primarily to augment the company's capital base to support future lending requirements. 

Read More: Indo-MIM IPO Lists at 45% Premium on BSE, Debuts at ₹703 Per Share 

Existing Shareholders to Participate in OFS 

The offer-for-sale includes shares being sold by Lok Capital Growth Fund, British International Investment plc, D Arulmany, Growth Catalyst Partners LLC, and Vidya Arulmany. 

As per the DRHP, Norwest Venture Partners is the largest shareholder with a 21.58% stake, followed by Kedaara Capital Fund (15.08%), British International Investment plc (10.33%) and Lok Capital (9.48%). 

Veritas Finance FY26 Financial Performance 

Veritas Finance reported growth across key financial metrics in FY26. 

The company primarily serves micro, small and medium enterprises (MSMEs) and self-employed individuals by offering small business loans, housing loans, used commercial vehicle loans and working capital loans. 

Merchant Bankers for the Veritas Finance IPO 

The company has also revised its merchant banker lineup for the IPO. Along with ICICI Securities, the book-running lead managers now include IIFL Capital Services, JM Financial, and SBI Capital Markets. 

Conclusion 

Veritas Finance has refiled its IPO papers with SEBI, increasing the fresh issue size to ₹900 crore while revising the offer-for-sale structure. The proceeds from the fresh issue will be used to strengthen the company's capital base for future lending, supported by growth in AUM, disbursements, and profitability during FY26. 

Read stock market news in Hindi. Head to Angel One's share market news in Hindi for comprehensive coverage.  

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.