Veritas Finance IPO
Veritas Finance IPO — date, issue size, SEBI status & DRHP details 2026
Veritas Finance filed its draft red herring prospectus (DRHP) with SEBI on 3 Aug 2026 for an IPO of a fresh issue of up to ₹900 crore and an offer for sale of up to 1,28,27,093 shares. The draft is under SEBI review. The price band, lot size and IPO dates are not announced yet.
Veritas Finance is a Chennai-based NBFC that gives small business loans, home loans and used commercial vehicle loans to MSMEs and self-employed people. Its loan book (AUM) stood at Rs 9,134.29 crore on 31 March 2026 across 444 branches.
Researched & reviewed by
Abhishek Vohera,
Founder, IPO Guru
Last updated
Figures sourced from the DRHP filed with SEBI
Where the Veritas Finance IPO stands
From draft to listing. Today is 9 November 2026.
- DRHP filed 03 Aug 2026
- SEBI observations TBA
- RHP & price band TBA
- Bidding TBA
- Listing TBA
| DRHP filed with SEBI | 3 Aug 2026 |
|---|---|
| SEBI status | Under SEBI review · 19 Oct 2026 |
| Last SEBI communication | 19 Oct 2026 |
| Coordinating lead manager | ICICI Securities Limited |
| RHP, price band & dates | Not announced |
Latest news
Our news coverage of Veritas Finance, newest first.
Veritas Finance IPO details
The offer as the DRHP describes it. Terms can change in the RHP.
| Issue type | Fresh issue and offer for sale |
|---|---|
| Fresh issue | Up to ₹900 Cr |
| Offer for sale | Up to 1,28,27,093 shares |
| Total issue size | Depends on the price band |
| Pre-IPO placement | Up to ₹180 Cr (reduces the fresh issue) |
| Face value | ₹10 per share |
| Proposed listing | BSE, NSE |
| Price band | Not announced (comes with the RHP) |
| Lot size | Not announced |
| IPO dates | Not announced |
| Book running lead managers | ICICI Securities Limited, IIFL Capital Services Limited, JM Financial Limited, SBI Capital Markets Limited |
| Registrar | KFin Technologies Limited |
Who is selling in the offer for sale
| Selling shareholder | Type | Offering | Avg. cost / share |
|---|---|---|---|
| Lok Capital Growth Fund | Investor | Up to 64,54,366 shares | Rs 92.56 |
| British International Investment plc | Investor | Up to 37,00,000 shares | Rs 82.85 |
| D. Arulmany | Individual | Up to 15,00,000 shares | Rs 145.38 |
| Growth Catalyst Partners LLC | Investor | Up to 6,72,727 shares | Rs 330.00 |
| Vidya Arulmany | Individual | Up to 5,00,000 shares | Rs 10.00 |
The selling shareholders' weighted average cost of acquisition ranges from Rs 10.00 to Rs 330.00 per share, and none of them bought shares in the last three years.
Strengths & risks
The case for and against, from the DRHP's own numbers and risk factors.
Strengths · 7
- 01Loan book (AUM) grew from Rs 5,723.79 crore on 31 March 2024 to Rs 9,134.29 crore on 31 March 2026, with AUM growth of 24.30% in FY2026.
- 02Profit for the year rose from Rs 245.05 crore in FY2024 to Rs 330.40 crore in FY2026.
- 03The loan book is spread over 231,752 active borrowers, so the company has no material dependence on any single borrower.
- 04Net interest margin was 14.06% and spread was 12.01% in FY2026, with a cost to income ratio of 33.92%.
- 05Capital adequacy (CRAR) was 33.19% on 31 March 2026, and the credit rating was upgraded to CARE AA- with Stable outlook from CARE A+.
- 06Average cost of borrowings fell to 9.21% in FY2026 from 9.94% in FY2025.
- 07Affordable Home Loans grew from 14.40% of AUM in FY2024 to 21.38% in FY2026, and Used Commercial Vehicle Loans reached 9.02%, which widens the product mix.
Risks · 10
- 01Gross Stage 3 loans rose from Rs 102.60 crore on 31 March 2024 to Rs 226.40 crore on 31 March 2026, and the gross Stage 3 ratio rose from 1.79% to 2.48%.
- 02Provision coverage on Stage 3 loans fell from 53.14% in FY2024 to 44.85% in FY2026.
- 03Total borrowings were Rs 7,374.10 crore on 31 March 2026 and the debt to equity ratio was 2.36 times, so the company depends on lenders for funds.
- 04Net cash used in operating activities was Rs 1,439.72 crore in FY2026, funded by Rs 1,712.26 crore from financing activities.
- 05First-time borrowers in under-served households made up 21.17% of AUM on 31 March 2026, and these borrowers may be hit by income shocks.
- 06Unsecured Working Capital Loans were 4.93% of AUM and carry the highest yield at 27.35%, but they have no collateral.
- 07Return on equity slipped from 12.27% in FY2024 to 11.25% in FY2026, and net interest margin fell from 15.83% to 14.06%.
- 08The company has 12 criminal proceedings and 2 tax proceedings against it, involving Rs 1.11 crore, and is subject to RBI inspections.
- 09Used Commercial Vehicle Loans and Affordable Home Loans are new businesses, started in March 2024 and October 2022.
- 10The offer includes an offer for sale of 1,28,27,093 shares, so part of the money goes to selling shareholders and not to the company.
Veritas Finance financials
Restated figures in ₹ crore, as reported in the DRHP.
| ₹ crore | 31 Mar 2026 | 31 Mar 2025 | 31 Mar 2024 |
|---|---|---|---|
| Revenue from Operations | 1844.21 | 1550.68 | 1111.20 |
| Total Income | 1848.60 | 1557.40 | 1117.49 |
| EBITDA | 1046.45 | 900.31 | 660.94 |
| Profit After Tax | 330.40 | 295.11 | 245.05 |
| Net Worth | 3127.66 | 2783.18 | 2329.55 |
| Total Borrowing | 7374.10 | 5629.24 | 3995.81 |
Key ratios (FY26)
P/E and market capitalisation need the price band and are added when the RHP is out.
Where the IPO money goes
₹900 crore of the fresh issue is earmarked to named objects; offer for sale proceeds go to the selling shareholders, not the company.
About Veritas Finance
It runs four businesses. Rural Business Loans are secured small business and home construction loans, and made up 64.67% of the loan book on 31 March 2026. Affordable Home Loans (offered since October 2022) were 21.38%. Used Commercial Vehicle Loans (offered since March 2024) were 9.02%. Unsecured Working Capital Loans were 4.93%.
As of 31 March 2026, the company had 231,752 active borrowers, 444 branches and 67 service centres across 10 states and 1 union territory. Tamil Nadu, Andhra Pradesh, Telangana, Karnataka and West Bengal together gave 91.36% of the loan book. The company had 8,329 employees on that date.
Rural Business Loans had an average yield of 21.86% on disbursements in FY2026 and an average sanctioned ticket size of Rs 0.53 million. Unsecured Working Capital Loans had the highest yield at 27.35% with a ticket size of Rs 0.18 million. The company operates in a single reporting segment, lending.
Veritas Finance is professionally managed and has no identifiable promoter under SEBI rules. Its shareholders include Norwest Venture Partners X - Mauritius (21.58%), Kedaara Capital Fund II LLP (15.08%) and British International Investment plc (10.33%). D. Arulmany is the Managing Director and CEO and holds 9.35%.
The industry
The company's industry report is by CRISIL. It says NBFC AUM grew at a 17.5% CAGR over FY2024 to FY2026 to reach Rs 57.88 trillion, and NBFC credit is expected to grow 17-18% over FY2026 to FY2029. The MSME lending market was about Rs 49 trillion on 31 March 2026, and the secured MSME loan segment is expected to grow at a CAGR of 18-19% between FY2026 and FY2029. Only 26-27% of MSME credit demand of about Rs 192 trillion was met through formal financing.
Customer concentration: The company had 231,752 active borrowers on 31 March 2026 and says revenue from its top five customers is not material.
Promoters & management
The company has no identifiable promoter; the largest holders before the issue are Norwest Venture Partners X - Mauritius at 21.58%, Kedaara Capital Fund II LLP at 15.08% and British International Investment plc at 10.33%.
| Name | Role |
|---|---|
| Raj Vikash Verma | Chairperson and Non-Executive Independent Director |
| D. Arulmany | Managing Director and Chief Executive Officer |
| Prakash Rayen J | Executive Director - Business and Operations |
| Naveen Raj R | Chief Financial Officer |
| V Aruna | Company Secretary and Compliance Officer |
The bankers & the filings
Who is running the issue, and the SEBI documents this page is built from.
Lead Manager Track Record
How the book-running lead managers on this issue have priced their past IPOs, measured on listing day.
JM Financial Ltd.
38 issues handledBest listing: Tempsens Instruments (India) (+111.3%). Weakest: Turtlemint Fintech Solutions (-10.4%).
SBI Capital Markets Ltd.
16 issues handledBest listing: Indo-MIM (+44.3%). Weakest: Central Mine Planning & Design Institute (-7.0%).
ICICI Securities
26 issues handledBest listing: Tempsens Instruments (India) (+111.3%). Weakest: Turtlemint Fintech Solutions (-10.4%).
IIFL Capital Services Limited
35 issues handledBest listing: Tonbo Imaging India (+65.7%). Weakest: Acevector (-11.5%).
Listing gain compares the listing-day opening price with the issue price, using the IPOs on IPO Guru that this lead manager has taken to market. A strong record reflects how the banker has priced past issues — it is not a forecast for this one. See every issue they have handled on the lead managers page.
Veritas Finance IPO: frequently asked
When will the Veritas Finance IPO open?
The Veritas Finance IPO dates are not announced yet. The draft is under SEBI review. The company announces the dates and price band after it files its red herring prospectus (RHP) with the Registrar of Companies, usually a week or two before bidding opens. This page switches to the full IPO page with dates, price band and lot size as soon as that happens.
What is the Veritas Finance IPO price band?
The price band is not announced yet. It is set by the company and its lead managers and published with the RHP, a few days before the issue opens. The DRHP fixes only the face value of ₹10 per share.
How big is the Veritas Finance IPO?
Veritas Finance filed its draft red herring prospectus (DRHP) with SEBI on 3 Aug 2026 for an IPO of a fresh issue of up to ₹900 crore and an offer for sale of up to 1,28,27,093 shares. The final size in rupees depends on the price band.
Has SEBI approved the Veritas Finance IPO?
The draft is under SEBI review. SEBI observations are valid for 12 months; the IPO has to open within that window or the company must file again.
What is the Veritas Finance IPO GMP?
There is no grey market premium to report before the price band is announced. IPO Guru starts tracking the Veritas Finance IPO GMP once the RHP and price band are out.
What will Veritas Finance do with the IPO money?
As per the DRHP: Gross proceeds of the fresh issue (use of net proceeds not detailed in the abridged prospectus) (₹900 crore).
Who are the lead managers of the Veritas Finance IPO?
The book running lead managers are ICICI Securities Limited, IIFL Capital Services Limited, JM Financial Limited, SBI Capital Markets Limited. KFin Technologies Limited is the registrar.
Does Veritas Finance have a promoter?
No. The company says it is professionally managed and has no identifiable promoter. Norwest Venture Partners X - Mauritius holds 21.58% and Kedaara Capital Fund II LLP holds 15.08% before the issue.
Is Veritas Finance profitable?
Yes. Profit for the year was Rs 330.40 crore in FY2026, up from Rs 295.11 crore in FY2025 and Rs 245.05 crore in FY2024.
Who are the selling shareholders in the Veritas Finance IPO?
Lok Capital Growth Fund, British International Investment plc, D. Arulmany, Growth Catalyst Partners LLC and Vidya Arulmany are selling up to 1,28,27,093 shares in total.
Other companies in the IPO pipeline
Mainboard companies with drafts filed with SEBI, same bankers first.
Know the day the price band is out.
We track every mainboard draft from SEBI filing to listing. When Veritas Finance files its RHP, this page becomes the full IPO page with dates, price band, lot size, GMP and subscription.
Not investment advice. Figures are from the company's draft offer document filed with SEBI and may change in the RHP.
