Veritas Finance has resubmitted its IPO filing to raise ₹900 crore through new shares to expand its lending capacity. The Chennai-based NBFC, which serves MSMEs, reported an AUM of ₹9,134 crore as of March 2026. This move comes as the company seeks to strengthen its capital base for further business growth.
Veritas Finance Ltd. has initiated the process for its public listing once again by refiling its preliminary IPO documents with the market regulator. The company aims to raise ₹900 crore through a fresh issue of equity shares. In addition to this, the public issue will feature an Offer for Sale (OFS), allowing existing shareholders to divest up to 1.28 crore shares. This refiling is a strategic step for the company as its previous regulatory approval was nearing expiration.
Scaling Operations for MSME Lending
The primary objective of the fresh capital infusion is to augment the company’s capital base. This additional liquidity is intended to support the firm’s growing loan book and facilitate onward lending activities. Founded in 2015, the company focuses on providing financial solutions to micro, small, and medium enterprises (MSMEs) and self-employed individuals who often have limited access to traditional bank credit. Over the years, the lender has diversified its offerings beyond core business loans to include home loans, working capital support, and financing for used commercial vehicles.
Financial Performance and Market Reach
Veritas Finance has shown steady expansion in its loan portfolio, reporting Assets Under Management (AUM) of ₹9,134 crore as of March 31, 2026. According to the company's data, this represents a compound annual growth rate (CAGR) of 26.33% from fiscal year 2024 to 2026. For the fiscal year ending March 2026, the firm recorded a net profit of ₹330.3 crore, with total loan disbursements reaching ₹4,579.5 crore.
Operating as a 'Middle Layer' Non-Banking Financial Company (NBFC), the lender has built a physical network of 444 branches. Its presence is concentrated across 10 states and one Union Territory, with significant operations in Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, and West Bengal.
Growth Strategy and Industry Context
The NBFC sector in India has been witnessing increased competition, with many lenders expanding into the underserved MSME segment to capture higher margins. For investors, the success of this IPO will depend on the company's ability to maintain asset quality while scaling its loan book in a competitive credit environment. Managing the cost of funds and ensuring effective loan recovery remains a standard operational challenge for NBFCs operating in the MSME space.
ICICI Securities, IIFL Capital Services, JM Financial, and SBI Capital Markets have been appointed to manage the IPO process. The next key updates for potential investors will include the announcement of price bands, subscription dates, and any further disclosures regarding the company's asset quality and borrowing costs in the final prospectus.