Veritas Finance Secures Sebi Approval for 900 Crore Initial Share Sale

Veritas Finance has received approval from the Securities and Exchange Board of India to launch its initial public offering. The public issue includes a fresh issue of equity shares worth 900 crore rupees and an offer for sale of up to 1.28 crore equity shares by existing shareholders.

Issue Structure and Plans

The proposed public issue may also include a pre-placement of specified securities worth up to 180 crore rupees. If this pre-IPO placement is completed, the size of the fresh issue will be reduced by that amount. The company plans to use the net proceeds from the fresh issue to strengthen its capital base and meet future business requirements, including providing loans to customers.

Company Background

Founded in 2015, the non-deposit-taking non-banking financial company primarily caters to micro, small and medium enterprises, small business owners, and self-employed individuals. Its lending portfolio includes business loans, home loans, used commercial vehicle financing, and working capital loans. The company reported assets under management of 9,134 crore rupees as of March 31, 2026, and a profit of 330.3 crore rupees for fiscal year 2026. Loan disbursements for the same period stood at 4,579.5 crore rupees.

Context

Initial public offerings allow private companies to raise funds from the public stock market by issuing new shares and giving early investors a chance to sell their stakes. Companies in the non-banking financial sector often use this capital expansion to increase their lending capacity and reach more borrowers who rely on non-formal financial channels.