Veritas Finance IPO Gets SEBI Approval for ₹900 Crore Fresh Issue; Price Band and Launch Date Yet to Be Announced

Veritas Finance has received approval from the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO), comprising a fresh issue of shares worth ₹900 crore and an offer for sale (OFS) of up to 1.28 crore equity shares by existing shareholders.

The Chennai-based non-banking financial company (NBFC) received SEBI's observations on October 19, according to the regulator's latest update on the processing of draft offer documents released on November 9. The company had filed its revised IPO papers on July 29, 2026.

The approval allows Veritas Finance to proceed with its proposed public issue, although the company has not announced the IPO opening date, price band or lot size. These details will be disclosed closer to the launch.

The development comes after Veritas Finance revised its earlier IPO plans. The company had initially filed papers in January 2025 to raise ₹2,800 crore, including a fresh issue of ₹600 crore and an OFS worth ₹2,200 crore. SEBI cleared that proposal in April 2025, but the issue was not launched.

Under the latest proposal, the fresh issue component has increased to ₹900 crore, while the OFS has been reduced to 1.28 crore shares. The total issue size will depend on the final offer price.

Veritas Finance IPO: Issue Size and Use of Proceeds

Veritas Finance plans to use the proceeds from the ₹900 crore fresh issue to strengthen its capital base and support future lending requirements.

The company may also raise up to ₹180 crore through a pre-IPO placement. If the placement is completed, the fresh issue size will be reduced by the amount raised.

Existing shareholders, including Lok Capital Growth Fund, British International Investment and Growth Catalyst Partners, are expected to participate in the OFS. The proceeds from this portion will go to the selling shareholders rather than the company.

ICICI Securities, IIFL Capital Services, JM Financial and SBI Capital Markets are the book-running lead managers for the issue.

Veritas Finance Financials and Business

Veritas Finance provides loans primarily to micro, small and medium enterprises (MSMEs) and self-employed borrowers. Its lending business includes small business loans, housing loans, used commercial vehicle loans and working capital financing.

For the financial year ended March 2026, Veritas Finance reported a net profit of ₹330.4 crore, up 12% from the previous year. Net interest income increased 18% to ₹1,133.5 crore.

The company's assets under management (AUM) rose 24.3% to ₹9,134 crore in FY26 from ₹7,348.6 crore a year earlier. Loan disbursements increased to ₹4,579.5 crore from ₹3,933.1 crore in FY25.

Veritas Finance, which began operations in 2015, is backed by investors including Norwest Venture Partners and Kedaara Capital.

Following SEBI's approval, the company will need to finalise the IPO schedule and file its red herring prospectus before opening the issue for subscription.

The Veritas Finance IPO price band, minimum investment amount, allotment date and listing date remain unannounced as of November 11, 2026.

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