About Veritas Finance IPO
The Veritas Finance IPO is a 100% book-built issue, offering a total size of up to ₹2,800 crore, comprising a fresh issue of equity shares of up to ₹600 crore and an offer for sale (OFS) of up to ₹2,200 crore by existing investors and individual shareholders. The company's DRHP was filed with SEBI on January 18, 2025.
The company will later announce the price band, listing, and subscription dates. The shares would be listed on the BSE and the NSE platforms. The issue is being managed by the professional Book Running Lead Managers (BRLMs), including ICICI Securities Ltd, HDFC Bank Ltd, Jefferies India Private Ltd, Kotak Mahindra Capital Company Ltd, Nuvama Wealth Management Ltd, while the registrar of the issue is KFin Technologies Ltd.
Company Background
Veritas Finance Ltd. was incorporated on April 30, 2015, in Chennai, Tamil Nadu, as a private firm. The RBI awarded the company its certificate of registration (RoC) on October 15, 2015, to operate as a non-deposit-taking NBFC. The company has always operated under the RBI-based regulatory framework as an NBFC-Middle Layer.
The company was subsequently converted into a public company on June 10, 2024, and, accordingly, its name was changed. A new certificate of incorporation, following the name change, was issued on October 23, 2024. The company operates in Chennai and maintains a strong presence through a registered office in Guindy.
Operations & Product Range
Veritas Finance Ltd. is an NBFC that provides financial solutions to meet the credit needs of niche customer segments. The company is a Non-Banking Finance Company (NBFC) that provides a range of credit products, primarily for Micro, Small, and Medium Enterprises (MSMEs), including the Personal Loans segment. Loan origination based on the business cycles of its customers is Veritas's primary product. The company is a formal credit intermediary for the MSME sector.
Facilities & Capacity
Veritas Finance Ltd. operates its business through a network of branches and a corporate office in Chennai. The company's throughput is directly dependent on the total number of branches and systems used to process loans and manage risk. While the DRHP lists the current registered office as SKCL Central Square 1 in Chennai, the company has been expanding its office space to accommodate increased business.
Brands & Market Presence
Veritas Finance Ltd. operates under the brand name “Veritas Finance,” which is a new name and upstart in the Indian financial services sector, deriving its roots from 2015. The company’s market is primarily domestic, with a state-to-state focus and restricted credit products. Veritas Finance Ltd. has secured the material statutory approvals, namely RBI registration, which is fundamental to its existing business. They have been linked to externally imposed capital adequacy ratios, as the regulatory order has favored their position.
Revenue Streams & Business Model
The business model of Veritas Finance Ltd. is to earn revenue through interest income on loans and processing fees on loans disbursed. The financial assets of the company are loans to MSMEs and individuals, which earn interest income and are managed by the company. The company had a substantial loan portfolio of ₹6,400.58 crore as of September 30, 2024.
Management & Shareholding
Veritas Finance Ltd. is a professionally managed company, as its shareholding pattern before the IPO is spread across various institutional and individual investors. After the IPO, the shareholding pattern will become more diversified as new public shareholders enter the cap table with the fresh issue and OFS.
Board & Key Management
The board & key management of Veritas Finance Ltd. comprise professionals with rich experience who are driving the strategic operations of the company. Though the board comprises a fair representation of independent & nominee directors from its diverse set of contributors, very few selected individuals, like V. Aruna (CS&CO), are actively participating. The board is mandated to monitor the company’s compliance with RBI’s governance & directions and to support the Group’s growth strategy in the challenging NBFC sector.
Veritas Finance IPO Details
| Detail | Description |
|---|---|
| IPO Date | - |
| Listing Date | - |
| Face Value | ₹ 10 per share |
| Issue Price Band | - |
| Lot Size | - |
| Sale Type | Fresh Capital & OFS |
| Total Issue Size | Up to ₹ 2,800.00 Cr (aggregating up to ₹ 28,000 million) |
| Reserved for Market Maker | - |
| Fresh Issue(Ex Market Maker) | Up to ₹ 2,000.00 Cr (aggregating up to ₹ 20,000 million) |
| Offer for Sale | Up to ₹ 800.00 Cr (aggregating up to ₹ 8,000 million) |
| Net Offered to Public | - |
| Issue Type | Bookbuilding IPO |
| Listing At | BSE, NSE |
| Share Holding Pre Issue | - |
| Share Holding Post Issue | - |
Veritas Finance IPO Financial Information
Latest Revenue
720.11
₹ Crore
Profit After Tax
133.11
₹ Crore
Net Worth
2,610.65
₹ Crore
Total Borrowing
4,889.42
₹ Crore
| Period Ended | Assets | Revenue From Operations | Profit After Tax | Net Worth | Reserves & Surplus | Total Borrowing | |||
|---|---|---|---|---|---|---|---|---|---|
| 30 Sep 2024 | 7,605.66 | 720.11 | 133.11 | 2,610.65 | 2,457.35 | 4,889.42 | |||
| 31 Mar 2024 | 6,421.59 | 1,117.49 | 245.05 | 2,329.55 | 2,187.16 | 3,995.81 | |||
| 31 Mar 2023 | 4,086.28 | 680.80 | 176.40 | 1,591.26 | 1,464.03 | 2,425.32 | |||
| 31 Mar 2022 | 2,642.47 | 442.23 | 75.40 | 1,408.05 | 1,282.80 | 1,195.65 | |||
| Amount in ₹ Crore | |||||||||
Veritas Finance Key Performance Indicator
| KPI | Values |
|---|---|
| ROE | 12.27% |
| ROCE | - |
| Debt/Equity | 1.72x |
| RoNW | - |
| PAT Margin | - |
| EBITDA Margin | - |
| Price to Book Value | - |
| Pre IPO | Post IPO | |
|---|---|---|
| EPS (Rs) | 19.04 (basic) 18.86 (diluted) | - |
| P/E (x) | - | - |
IPO Objectives
Veritas Finance Ltd. intends to use the IPO proceeds from the fresh issue primarily to augment its capital base by funding the capital requirements for future projects. This includes increasing the company's Tier-I capital to support its lending operations and ensure regulatory compliance.
Conclusion
Veritas Finance Ltd. has a 10-year track record in specialized MSME financing and is well-positioned to capitalize on significant credit opportunities in India’s underbanked markets. Execution remains the story, given a well-diversified branch footprint and a strong balance sheet. The primary purpose of this IPO is to support and strengthen its future business development plans.
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Competitive Strengths
In-depth expertise in catering to the credit needs of the MSME segment and underserved individuals.
Led by a professional management team and institutional investors.
Maintains an actively managed capital base that consistently meets and complies with RBI's scale-based regulatory requirements.
| Sr.no | Description | Date | File |
|---|---|---|---|
| 1 | SEBI/Exchange approval received | 29/04/2025 | - |
| 2 | Filed with SEBI/Exchange | 21/01/2025 | View DRHP |
Veritas Finance IPO Timeline
| IPO Open Date | - |
| IPO Close Date | - |
| Tentative Allotment | - |
| Initiation of Refunds | - |
| Credit of Shares to Demat | - |
| Tentative Listing Date | - |
| Cut-off time for UPI mandate confirmation | - |
IPO Lot Size
| Investors | No.of lots | Shares Offered | Max Bid Amount |
|---|---|---|---|
| Individual investors (Retail) (Min) | 1 | — | ~₹14,000 - ₹15,000 |
| Individual investors (Retail) (Max) | 13-14 | — | Up to ₹200,000 |
| S-HNI (Min) | 14-15 | — | Over ₹200,000 |
| S-HNI (Max) | 66-70 | — | Up to ₹10,00,000 |
| B-HNI (Min) | 71+ | — | Over ₹10,00,000 |