Chennai-based Veritas Finance has filed its Draft Red Herring Prospectus (DRHP) with SEBI, seeking to raise ₹900 crore through a fresh issue of shares. The non-banking financial company (NBFC) focuses on providing credit to unorganized micro and small enterprises.
₹900 crore
Fresh Issue Size
⏳ Time Machine
How today’s news fits into the bigger picture
2015
Veritas Finance founded
Veritas Finance was established with the specific objective of addressing the credit needs of unorganized micro and small enterprises (MSMEs), a segment often overlooked by larger banks. This marked its entry into inclusive finance.
2018
IL&FS crisis impacts NBFCs
The default by IL&FS triggered a liquidity crunch across the Indian NBFC sector, leading to increased scrutiny from regulators and a period of caution for investors in the space. This event reshaped the regulatory landscape.
2022
RBI tightens NBFC norms
The Reserve Bank of India introduced stricter regulations for NBFCs, focusing on capital adequacy, asset quality, and governance, aimed at strengthening the sector's resilience and protecting investor interests. This move enhanced stability.
Early 2026
Strong primary market for NBFCs
Several NBFCs successfully launched their IPOs or raised significant capital, indicating a renewed investor appetite for the sector and its role in meeting diverse financial needs across the economy. This signaled market confidence.
Today
Veritas Finance filed its DRHP with SEBI to raise ₹900 crore through an IPO, targeting MSME lending.
What happens next?
SEBI will review the DRHP, and upon approval, Veritas Finance will announce its IPO dates and price band, with a focus on raising capital for future lending.
Veritas Finance, a Chennai-headquartered non-banking financial company (NBFC), has taken a significant step towards its public listing by filing its Draft Red Herring Prospectus (DRHP) with SEBI. The company aims to raise **₹900 crore** through a fresh issue of shares, with an additional offer for sale of up to 1.28 crore shares by existing investors. Veritas Finance specializes in providing credit solutions to unorganized micro and small enterprises (MSMEs), a segment often underserved by traditional banks. This IPO move reflects the growing confidence in India's financial services sector and the increasing demand for capital among small businesses, signaling a vibrant primary market for investors looking for exposure to India's entrepreneurial growth story. The funds raised will primarily support the company's future lending activities and business expansion.
💭 If you're wondering…
An OFS is a mechanism where existing shareholders of a company sell their shares to the public through an exchange platform, rather than the company issuing new shares. It allows early investors to monetize their holdings.
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