Veritas Finance To File Fresh DRHP, Plans ₹1,500 Crore IPO

Nearly a year after shelving its listing plans, Veritas Finance Ltd is returning to the primary market with a revised initial public offering (IPO) proposal. According to sources, the company plans to file a fresh draft red herring prospectus (DRHP) as its earlier SEBI approval is nearing expiry.

The revised IPO is expected to comprise a ₹900 crore fresh issue and an offer for sale (OFS) of around ₹600 crore. Unlike the earlier proposal, the fresh issue will account for a larger share of the fundraising.

Veritas Finance Ltd. IPO: What Has Changed?

Veritas Finance plans to reduce the issue size to ₹1,500 crore, compared with the ₹2,800 crore proposed earlier. The revised structure is likely to include a ₹900 crore fresh issue and an OFS of about ₹600 crore.

In its previous filing, the company had proposed a ₹600 crore fresh issue and an OFS of ₹2,200 crore. The revised plan shifts the focus towards raising growth capital rather than providing an exit for existing shareholders.

During its annual general meeting last week, the company sought shareholders' approval for the IPO, including a fresh issue of equity shares worth ₹900 crore and an offer for sale of up to 12,827,093 equity shares. Sources also indicated that the draft papers could be filed with SEBI within the next one to two weeks.

Why Is Veritas Finance Filing Fresh Draft Papers?

The company has opted to submit a fresh DRHP because the validity of its earlier SEBI approval is close to expiring. The fresh filing will carry the company's latest financial numbers.

Veritas Finance had secured SEBI's approval in April 2025 and was aiming to launch the IPO in August 2025. Those plans were put on hold as market conditions turned volatile. The company was also assessing the possible impact of US tariff measures on export-oriented MSMEs, a key borrower segment. Sources now expect the company to seek a valuation of 1.8x to 2.2x one-year forward price-to-book, based on a net worth of about ₹3,150 crore as of March 2026.

How Did Veritas Finance Perform Before The IPO?

Veritas Finance reported revenue of ₹1,857 crore in FY26, up from ₹1,566 crore in the previous financial year. Profit after tax increased to ₹328 crore, compared with ₹295 crore a year earlier.

The company closed FY26 with a loan asset portfolio of ₹9,134 crore. Gross NPA rose to 2.5% in FY26 from 2.2% a year earlier. Net NPA also edged up, reaching 1.4% from 1.1%.

Veritas Finance Ltd, incorporated in 2015, primarily lends to MSMEs and self-employed customers. The lender has since added affordable home loans, used commercial vehicle loans and working capital loans to its portfolio. It operated 424 branches across 10 states and one union territory as of 30 September 2024, and employed 7,704 people. Its investors include Norwest Venture Partners, Multiples PE, Kedaara Capital, Lok Capital and British International Investment.

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