Veritas Finance IPO
Veritas Finance Limited has filed a draft red herring prospectus (DRHP) with SEBI for a mainboard IPO, a fresh issue and offer for sale. As of SEBI's report dated 30 October 2026, the draft is under SEBI review. The draft proposes a fresh issue of up to ₹900.00 crore and an offer for sale of up to 1,28,27,093 shares by three investor selling shareholders and two individual selling shareholders. In FY26 the company made a profit of ₹330.40 crore on total income of ₹1,848.60 crore, with loans under management of ₹9,134.29 crore. The price band, lot size and IPO dates are not announced yet.
- Status
- Under SEBI reviewSEBI report, 30 Oct 2026
- SEBI received draft
- 30 Jul 2026
- Type of issue
- Fresh issue and offer for sale
- Lead manager
- ICICI Securities Limited
- Last SEBI contact
- 19 Oct 2026
- Price band and dates
- Not announced
Where it stands
Veritas Finance IPO: where it stands
SEBI processing status, 30 Oct 2026- Draft filed with SEBI30 Jul 2026
- SEBI reviewUnder SEBI review
- SEBI observations
- RHP and price bandNot yet
- Bidding and listingNot yet
SEBI is examining the draft offer document. This is SEBI's own list of drafts under process.
SEBI received the draft on 30 July 2026, 99 days ago, and its last communication on the draft was on 19 October 2026 (day count is our calculation).
DRHP at a glance
Veritas Finance DRHP at a glance
Draft red herring prospectus, 29 Jul 2026What the company's draft offer document says. Figures can change in the red herring prospectus, and nothing here is a review or a recommendation.
The business
DRHP, Our Business (p. 186) and Basis for Offer Price, KPIs (p. 127)Veritas Finance is a non-deposit taking non-banking financial company registered with the Reserve Bank of India and classified as an NBFC-Middle Layer under the RBI's scale-based regulations. It lends mainly to micro, small and medium enterprises and self-employed individuals, through rural business loans, and has added affordable home loans, used commercial vehicle loans and unsecured working capital loans. It was established in 2015, is headquartered in Chennai, and is professionally managed with no identifiable promoter. Secured loans were 95.07% of loans under management as of 31 March 2026, and first-time borrowers 21.17%.
Loans under management were ₹9,134.29 crore as of 31 March 2026, up at a compound annual rate of 26.33% from FY24, across 444 branches in 10 states, with 8,329 employees. Disbursements were ₹4,579.53 crore in FY26. Loans under management a branch rose from ₹14.98 crore in FY24 to ₹20.57 crore in FY26. The CRISIL report commissioned for the draft puts estimated MSME credit demand in India at about ₹192 trillion in FY26, with 26% to 27% met through formal channels, and the MSME lending market at about ₹49 trillion as of 31 March 2026.
Loans under management by business, FY26
- Rural business loans: 64.67%
- Affordable home loans: 21.38%
- Used commercial vehicle loans: 9.02%
- Working capital loans, unsecured: 4.93%
The offer
DRHP cover pages, The Offer (p. 65), Objects of the Offer (p. 118) and Capital Structure (p. 82)| Fresh issue | Up to ₹900.00 croreMoney goes to the company |
| Offer for sale | Up to 1,28,27,093 sharesBy Lok Capital Growth Fund, up to 64,54,366 shares at a weighted average cost of ₹92.56; British International Investment plc, up to 37,00,000 shares at ₹82.85; D. Arulmany, up to 15,00,000 shares at ₹145.38; Growth Catalyst Partners LLC, up to 6,72,727 shares at ₹330.00; and Vidya Arulmany, up to 5,00,000 shares at ₹10.00. The first, second and fourth are investor selling shareholders and the others individual selling shareholders. The company receives no proceeds from the offer for sale |
| Shares before the IPO | 13,12,84,209Face value ₹10 each. The offer for sale is about 9.8% of them (ours) |
| Pre-IPO placement | Up to ₹180.00 croreOptional; would reduce the fresh issue, and will not exceed 20% of its size |
| Listing | BSE and NSEMainboard, under Regulation 6(1). The offer includes a reservation for eligible employees |
| Lead managers | ICICI Securities Limited, IIFL Capital Services Limited, JM Financial Limited and SBI Capital Markets Limited |
| Registrar | KFin Technologies Limited |
| Promoter | The company is professionally managed and has no identifiable promoter |
What the company plans to do with the money
DRHP, Objects of the Offer (p. 118 to 119)| Object | ₹ crore |
|---|---|
| Augmenting the capital base to meet future business requirements towards onward lending |
The total shown is the fresh issue size of ₹900.00 crore. The draft gives a single object, with the rupee amount left blank because it equals the net proceeds after offer expenses, and expects deployment in FY27. The offer for sale money goes to the selling shareholders, not the company.
Financials
DRHP, Summary of Financial Information (p. 67 to 72) and Basis for Offer Price, KPIs (p. 124 to 127), ₹ crore| ₹ crore | FY24 | FY25 | FY26 |
|---|---|---|---|
| Loans under management | 5,723.79 | 7,348.64 | 9,134.29 |
| Loans under management growth | 61.98% | 28.39% | 24.30% |
| Disbursements | 3,702.43 | 3,933.12 | 4,579.53 |
| Total income | 1,117.49 | 1,557.40 | 1,848.60 |
| Profit for the year | 245.05 | 295.11 | 330.40 |
| Diluted EPS (₹) | 18.86 | 22.25 | 24.99 |
| Net worth | 2,329.55 | 2,783.18 | 3,127.66 |
| Yield on average loans | 22.70% | 22.08% | 21.22% |
| Average cost of borrowings | 9.90% | 9.94% | 9.21% |
| Net interest margin | 15.83% | 14.72% | 14.06% |
| Cost to income ratio | 35.18% | 33.26% | 33.92% |
| Credit cost on average loans | 1.99% | 2.63% | 2.58% |
| Return on loans under management | 5.40% | 4.53% | 4.10% |
| Return on equity | 12.27% | 11.52% | 11.25% |
| Gross stage 3 loans | 1.79% | 2.21% | 2.48% |
| Net stage 3 loans | 0.85% | 1.10% | 1.38% |
| Provision coverage ratio | 53.14% | 50.52% | 44.85% |
| Capital to risk weighted assets ratio | 41.49% | 37.82% | 33.19% |
| Debt to equity (times) | 1.72 | 2.02 | 2.36 |
| Branches | 382 | 438 | 444 |
Restated figures. Loans under management, disbursements, income and profit all rose across the three years, while yield on average loans, net interest margin, return on loans under management and return on equity fell. Gross and net stage 3 loans rose, the provision coverage ratio fell from 53.14% to 44.85%, and the capital to risk weighted assets ratio fell from 41.49% to 33.19% as debt to equity rose from 1.72 to 2.36 times. Net worth is the aggregate of equity share capital, securities premium, retained earnings and the other items the draft lists. Net asset value a share was ₹238.24 as of 31 March 2026. Return on equity is worked out on average net worth.
Listed peers named in the draft
DRHP, Basis for Offer Price (p. 126). Peer prices as of 27 July 2026 on BSE, and peer figures for the year ended 31 March 2026 on a consolidated basis.The document reports an industry peer P/E high of 23.63 times, a low of 14.51 times and an average of 18.39 times, and a price to book high of 3.29, low of 2.16 and average of 2.62. The P/E and price to book for Veritas Finance are not given until the offer price is set. The price to book column is shown here because the peer table gives no return on net worth for two of the five peers.
| Company | Diluted EPS (₹) | P/E | Price to book |
|---|---|---|---|
| Veritas Finance (FY26) | 24.99 | Set with the offer price | Set with the offer price |
| Five Star Business Finance | 37.25 | 14.88x | 2.22 |
| SBFC Finance | 4.10 | 22.56x | 2.75 |
| Aavas Financiers | 82.14 | 18.45x | 2.38 |
| Aptus Value Housing Finance | 18.84 | 15.14x | 2.82 |
| Sundaram Finance | 186.81 | 24.67x | 3.44 |
Risks the draft lists first
DRHP, Risk Factors (p. 23 to 31)- First-time borrowersThe business carries high credit risk, with loans to first-time borrowers in under-served households and businesses at 21.17% of loans under management as of 31 March 2026. (Risk factor 1, p. 23)
- DefaultsGross stage 3 loans rose to ₹226.40 crore as of 31 March 2026, from ₹102.60 crore as of 31 March 2024, and further defaults would raise provisioning and write-offs. (Risk factor 2, p. 24)
- FundingThe business needs substantial funds and total borrowings were ₹7,374.10 crore as of 31 March 2026, so any disruption in funding sources would affect operations. (Risk factor 3, p. 25)
- Unsecured loansUnsecured working capital loans were 4.93% of loans under management as of 31 March 2026 and carry credit risk that could raise stage 3 loans. (Risk factor 7, p. 29)
- RBI inspectionsThe company is subject to periodic Reserve Bank of India inspections, and failure to address observations could bring penalties and regulatory action. (Risk factor 8, p. 30)
- New businessesAffordable home loans and used commercial vehicle loans are recent additions, and the company may not grow them successfully. (Risk factor 10, p. 31)
Documents
Veritas Finance DRHP and documents
SEBI filings- Draft red herring prospectus, dated 29 Jul 2026, on SEBI since 21 Jan 2025
- Draft red herring prospectus, dated 29 Jul 2026, on SEBI since 3 Aug 2026
The DRHP has the issue size, use of the money, financials, promoters and risk factors. It can change before the final red herring prospectus.
Questions
Veritas Finance IPO FAQs
When will the Veritas Finance IPO open?
The date is not announced. The company first needs SEBI's observations on its draft, then files a red herring prospectus with the dates. SEBI received the draft 99 days ago (our calculation).
Has SEBI approved the Veritas Finance IPO?
SEBI is examining the draft offer document. This is SEBI's own list of drafts under process. Source: SEBI processing status as on 30 October 2026.
What is the Veritas Finance IPO price band and lot size?
Not announced. The price band is published at least two working days before the IPO opens, and the lot size is set with it. We add both here the day they are filed.
What is the Veritas Finance IPO GMP?
We do not publish a GMP. Grey market premium is unofficial: it is not regulated by SEBI and not published by any exchange. Before the price band is announced there is no issue price to compare it with.
Who is the lead manager of the Veritas Finance IPO?
ICICI Securities Limited is the coordinating book running lead manager named in SEBI's processing status report. The DRHP lists all the lead managers and the registrar.
What will Veritas Finance do with the IPO money?
According to the DRHP, the fresh issue money goes to augmenting the capital base to meet future business requirements towards onward lending. The offer for sale money goes to the selling shareholders, not the company.
What does Veritas Finance do?
Veritas Finance is a non-deposit taking non-banking financial company registered with the Reserve Bank of India and classified as an NBFC-Middle Layer under the RBI's scale-based regulations. It lends mainly to micro, small and medium enterprises and self-employed individuals, through rural business loans, and has added affordable home loans, used commercial vehicle loans and unsecured working capital loans. It was established in 2015, is headquartered in Chennai, and is professionally managed with no identifiable promoter. Secured loans were 95.07% of loans under management as of 31 March 2026, and first-time borrowers 21.17%.
Where can I read the Veritas Finance DRHP?
On SEBI's website, where the draft red herring prospectus was published on 21 January 2025. The draft is dated 29 July 2026 and runs to 540 pages. It has the issue size, use of the money, financials and risk factors.
Sources: SEBI processing status of draft offer documents as on 30 October 2026, SEBI's yearly processing status archive and SEBI's list of draft offer documents, and the company's DRHP dated 29 July 2026. Day counts and the last date to open are our calculations. This page is information only, not a recommendation.