Veritas Finance Limited has filed a DRHP with SEBI for an IPO to raise ₹2,800 crore. The company focuses on providing loans to MSMEs and self-employed individuals.
Veritas Finance Limited, a leading non-banking financial company (NBFC) based in India, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), signaling its plan to raise up to ₹2,800 crore through an initial public offering (IPO). The proposed IPO comprises a fresh issue of ₹600 crore and an offer for sale (OFS) of ₹2,200 crore, with each equity share having a face value of ₹10. The IPO will also include a reservation of equity shares for eligible employees.
Founded in 2015 and registered with the Reserve Bank of India (RBI), Veritas Finance has quickly risen as a key player in the financial sector, particularly focusing on providing small business loans to micro, small, and medium enterprises (MSMEs), as well as self-employed individuals. It also offers home loans and used commercial vehicle loans, addressing the financial needs of underserved MSMEs and individuals in India.
Veritas Finance has been classified as an ‘NBFC-Middle Layer’ under the RBI’s scale-based regulations, and it is recognized for its rapid growth, boasting a compound annual growth rate (CAGR) of 61.76% in loan growth between FY2022 and FY2024, as per CRISIL MI&A.
The company plans to utilize the net proceeds from the IPO to strengthen its capital base, fulfill future business requirements, and enhance its lending activities.
ICICI Securities Limited, HDFC Bank Limited, Jefferies India Private Limited, Kotak Mahindra Capital Company Limited, and Nuvama Wealth Management Limited have been appointed as the book-running lead managers for the IPO. Veritas Finance may also consider a pre-IPO placement of up to ₹120 crore in consultation with the lead managers.
The equity shares from this offering are expected to be listed on both BSE Limited and the National Stock Exchange of India Limited.
With its rapid growth and focus on meeting the needs of underserved sectors, Veritas Finance is positioning itself as a key financial player in India, offering accessible credit to help fuel the country’s economic growth.
