By ipomarket.in Editorial Team · Last reviewed: 2026-11-10
Disclaimer: This article is for informational purposes only and does not constitute investment advice. IPO investments are subject to market risks. Please read the offer document carefully and consult a SEBI-registered investment advisor before investing.
Veritas Finance, a Chennai-based retail-focused non-banking financial company (NBFC), has moved a step closer to a public listing. The company received SEBI observations on its revised IPO documents on October 19, 2026, after refiling its draft red herring prospectus (DRHP) earlier in the year. SEBI observations are the regulator's comments on a draft filing; receiving them clears the way for a company to proceed towards launch, though it is not a seal of approval on the merits of the offer.
What stands out here is that this is a slimmed-down version of an earlier, much larger plan. Below we lay out what has been confirmed, what has changed, and what is still unknown.
What the revised IPO looks like
The refiled offer comprises a fresh issue of ₹900 crore and an offer for sale (OFS) of up to 1.28 crore shares. A fresh issue brings new money into the company; an OFS lets existing shareholders sell part of their holdings, with those proceeds going to the sellers rather than the business.
Veritas refiled its DRHP with SEBI on July 29, 2026, and the observations followed on October 19, 2026. The company may also raise up to ₹180 crore through a pre-IPO placement. If it does, the fresh issue size would reduce accordingly, since a pre-IPO placement effectively takes some of the capital raise ahead of the public offer. If you are unfamiliar with how these stages fit together, our explainer on the DRHP and how to read it is a useful starting point.
From ₹2,800 crore to ₹900 crore
This is not Veritas Finance's first attempt. The company filed its initial DRHP on January 18, 2025, proposing to raise up to ₹2,800 crore. SEBI approved that filing on April 29, 2025, but Veritas did not proceed with the listing at that time.
The current structure is a materially scaled-down version of the earlier proposal. The reasons behind the decision not to list in 2025 have not been disclosed in the claims available to us, so we are not speculating on them. What is confirmed is that the company has returned with a smaller fresh issue and a fresh set of SEBI observations. Companies sometimes trim or delay offers when market conditions or valuation expectations shift; our note on why IPOs are withdrawn or postponed in India covers the common drivers, though we cannot attribute any specific one to Veritas here.
The business
Veritas Finance was established in 2015 and initially focused on providing small business loans to MSMEs (micro, small and medium enterprises) and self-employed individuals. It operates in the retail NBFC space, lending to borrowers who are often underserved by larger banks.
The portfolio has a strong rural tilt. At the end of September 30, 2024, the company had a loan book of ₹6,517 crore, with rural business loans accounting for over 72% of the portfolio. That concentration is both a strength and a point to watch: it gives the lender a distinct niche, but it also ties performance closely to rural income cycles and regional economic conditions.
Financials at a glance
On the numbers that have been disclosed, the trajectory is one of steady growth:
- Net profit: ₹330.4 crore for FY26, a 12% increase over the previous financial year.
- Assets under management (AUM): ₹9,134 crore at the end of FY26, up 24.3% from ₹7,348.6 crore a year earlier.
AUM growth running ahead of profit growth is common for a lender in an expansion phase, as it builds book faster than it grows the bottom line. For retail investors, the harder questions, such as asset quality, net interest margins and cost of funds, will only be answerable once the full financial disclosures in the RHP are available. Our guide on how to analyse IPO financials from the RHP walks through what to look for in an NBFC filing.
Shareholders and bankers
Norwest Venture Partners holds a 21.58% stake in Veritas Finance, making it the largest shareholder. The presence of an institutional backer at this size is relevant because such investors often participate in the OFS component of an IPO.
The book-running lead managers for the issue are ICICI Securities, IIFL Capital Services, JM Financial and SBI Capital Markets.
What is still unknown
Several of the figures that retail investors care about most have not been released:
- The IPO price band has not yet been announced.
- The lot size has not yet been announced.
- The offer dates have not yet been announced.
Until the price band is public, it is not possible to assess valuation, implied market capitalisation or how the pricing compares with listed NBFC peers. We will update this article when those details are confirmed.
FAQ
What is the Veritas Finance IPO date?
The offer dates have not yet been announced. The company received SEBI observations on October 19, 2026, which allows it to proceed towards a launch, but no opening and closing dates have been disclosed.
How big is the Veritas Finance IPO?
The revised offer comprises a fresh issue of ₹900 crore and an offer for sale of up to 1.28 crore shares. The company may also raise up to ₹180 crore via a pre-IPO placement, which would reduce the fresh issue size. This is smaller than the ₹2,800 crore it originally proposed in January 2025.
What does Veritas Finance do?
It is a Chennai-based retail-focused NBFC set up in 2015, lending primarily to MSMEs and self-employed individuals. Rural business loans made up over 72% of its ₹6,517 crore loan book as of September 30, 2024.
Is the price band available yet?
No. Both the price band and lot size are not yet disclosed. Without them, valuation cannot be assessed, so any listing-gain or GMP commentary at this stage would not rest on confirmed numbers.
Who are the lead managers?
ICICI Securities, IIFL Capital Services, JM Financial and SBI Capital Markets are the book-running lead managers.
Last reviewed: 2026-11-10 by the ipomarket.in Editorial Team.