Veritas Finance Limited Seeks Rs. 2,800 Crore Through IPO Files DRHP with SEBI
Varahi media.com online news,January 27th,2025: Veritas Finance Limited, a retail-focused non-deposit taking Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India
Varahi media.com online news,January 27th,2025: Veritas Finance Limited, a retail-focused non-deposit taking Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India (RBI), has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO).
As a diversified NBFC, Veritas primarily offers small business loans to micro, small, and medium enterprises (MSMEs) as well as self-employed individuals. Over time, it has expanded its portfolio to include home loans and used commercial vehicle loans.
The public offer, aggregating up to Rs. 2,800 crore, consists of a fresh issue of equity shares up to Rs. 600 crore (“THE FRESH ISSUE”) and an offer for sale of equity shares aggregating up to Rs. 2,200 crore by the selling shareholders (“OFFER FOR SALE”), each with a face value of ₹10. The public offer also includes a reservation of equity shares for subscription by eligible employees (“EMPLOYEE RESERVATION PORTION”).
Veritas Finance intends to utilize the net proceeds to strengthen its capital base and meet future business requirements to support onward lending.
The Offer for Sale of up to Rs. 2,200 crore includes equity shares worth up to Rs. 550 crore by Norwest Venture Partners X – Mauritius, Rs. 550 crore by Kedaara Capital Fund II LLP, Rs. 500 crore by British International Investment plc, Rs. 425 crore by Lok Capital Growth Fund, Rs. 75 crore by Growth Catalyst Partners LLC (collectively known as the “Investor Selling Shareholders”), and additional equity shares worth Rs. 36 crore by Vidya Arulmany, Rs. 21 crore by P. Surendra Pai, Rs. 21 crore by Savita S. Pai, Rs. 14 crore by Sheela Pai Cole, and Rs. 8 crore by Moneisha Sharad Gandhi (collectively referred to as the “Individual Selling Shareholders” and along with the Investor Selling Shareholders as the “Selling Shareholders”).
In consultation with the Book Running Lead Managers (BRLMs), the company may also consider a Pre-IPO placement of securities up to Rs. 120 crore prior to the filing of the Red Herring Prospectus with the Registrar of Companies (ROC). If undertaken, the proceeds from this placement will reduce the amount raised from the Fresh Issue, as per applicable rules.
Founded in 2015, Veritas Finance is the fastest-growing NBFC in terms of Assets Under Management (AUM) growth, according to CRISIL MI&A, with a Compound Annual Growth Rate (CAGR) of 61.76% from FY 2022 to FY 2024. The company is focused on addressing the financial needs of underserved and underbanked MSMEs and individuals, providing them with access to credit.
ICICI Securities Limited, HDFC Bank Limited, Jefferies India Private Limited, Kotak Mahindra Capital Company Limited, and Nuvama Wealth Management Limited are the Book Running Lead Managers for this issue.
The equity shares offered through the Red Herring Prospectus are proposed to be listed on BSE Limited (BSE) and the National Stock Exchange of India Limited (NSE), collectively known as the Stock Exchanges.
About Author
