Upcoming IPO: Veritas Finance Filed DRHP With SEBI to Raise ₹2,800 Crore Via IPO

Veritas Finance Limited has submitted its preliminary draft papers to the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO). The company’s draft red herring prospectus indicates that the proposed IPO could raise up to ₹2,800 crore.

This upcoming IPO consists of a fresh issue of equity shares worth up to ₹600 crore and an offer for sale (OFS) of equity shares totalling up to ₹2,200 crore, with a face value of ₹10 each. The public offer will also include a portion reserved for subscription by eligible employees.

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 issue.

Additionally, Veritas Finance may consider a pre-IPO placement of up to ₹120 crore, subject to consultation with the book-running lead managers. The equity shares will be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE).

Use of IPO Funds

Proceeds from the fresh issue are intended to strengthen the company’s capital base to support its future lending operations.

About Veritas Finance Limited

Established in 2015, Veritas Finance Limited is a non-banking financial company (NBFC) registered with the Reserve Bank of India (RBI) and classified as an ‘NBFC-Middle Layer’ under the RBI’s scale-based regulations. The company provides small business loans to micro, small, and medium enterprises (MSMEs) as well as home loans and used commercial vehicle loans, with a focus on underserved and underbanked segments.

Between FY 2022 and FY 2024, Veritas recorded the fastest loan growth among its peers, with a compounded annual growth rate (CAGR) of 61.76%. Through its offerings, the company aims to meet the financial needs of MSMEs and self-employed individuals, providing them access to essential credit.

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