The company is aiming to secure approval from SEBI (Securities and Exchange Board of India) to launch a significant IPO of Rs 2,800 crore comprising fresh issues and an Offer for Sale (OFS) by shareholders looking to exit their positions.
The fresh issues are Rs 600 Crore with a Face value of Rs 10 each share and OFS would be Rs 2,200 crore. Especially, these public issues set the reservation for eligible employees.
In this OFS, shares valued at ₹550 crore will be offloaded by Norwest Venture Partners X – Mauritius and Kedaara Capital Fund II LLP. Moreover, British International Investment plc will also sell shares worth ₹500 crore. At the same time ₹425 crore by Lok Capital Growth Fund and ₹75 crore by Growth Catalyst Partners LLC.
Additionally, individual shareholders, Vidya Arulmany also offer ₹36 crores, while ₹21 crores each by P Surendra Pai and Savita S Pai, simultaneously, ₹14 crores by Sheela Pai Cole and ₹ 8 crores by Moneisha Sharad Gandhi.
The company has decided how to utilize funds. The funds will be used for enhanced capital to support future business needs and to lend money to others.
For the IPO process, Veritas Finance has collaborated with investment banks such as HDFC Bank, Kotak Mahindra Capital, Jefferies, ICICI Securities, and Nuvama Wealth Management Limited.
Pre-IPO placement of Rs 120 crore could be possible once discussed with book-running lead managers. Moreover, this IPO would be listed on the BSE(Bombay Stock Exchange)& NSE(National Stock Exchange).
About Veritas Finance
Veritas Finance Ltd began its operations in 2015 with a focus on meeting the financial needs of micro, small, and medium enterprises (MSMEs) in India. Moreover, this NBFC company was established in 2015 and It offers small business loans to MSMEs and self-employed individuals, along with home loans and loans for used commercial vehicles.
The company offers tailor-made financial products to cater to short-term working capital requirements, medium-term business loan needs, and long-term housing construction needs. Veritas Finance Ltd has a gross income of ₹1,124 crore, with a profit after tax (before other comprehensive income) amounting to ₹245 crore. Enhanced credit – Exceptional liquidity – Robust profitability. These are the strengths of this company.
Veritas Finance IPO Prospectus:
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | To be Updated Soon |
Veritas Finance Company Financial Report
Amount ₹ in Crores
| Period Ended | Revenue | Expense | Profit After Tax |
| 2022 | ₹442.23 | ₹340.86 | ₹75.40 |
| 2023 | ₹680.80 | ₹447.95 | ₹176.40 |
| 2024 | ₹1117.49 | ₹794.53 | ₹245.05 |
| September 2024 | ₹720.11 | ₹542.91 | ₹133.11 |
Veritas Finance IPO Valuation – FY2024
Veritas Finance IPO valuations detail like Earning Per Share (EPS), Price/Earning P/E Ratio, Return on Net Worth (RoNW), and Net Asset Value (NAV) details.
| Earning Per Share (EPS): | ₹19.04 (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 12.27% |
| Net Asset Value (NAV): | ₹182.68 |
Peer Group Comparison
| Company | EPS | PE Ratio | RoNW % | NAV | Income |
| Five Star Business Finance | 28.64 | 22.98 | 17.59% | 177.68 | 2195.10 Cr. |
| SBFC Finance Limited | 2.35 | 36.21 | 10.13% | 25.87 | 1019.92 Cr. |
| Aavas Financiers Limited | 62.03 | 26.31 | 13.96% | 476.79 | 2020.69 Cr. |
| Aptus Value Housing Finance India Limited | 12.27 | 22.20 | 14.75% | 75.52 | 1416.85 Cr. |
| Cholamandalam Investment and Finance Company Limited | 41.17 | 29.82 | NA | 233.26 | 19419.87 Cr. |
| Sundaram Finance Limited | 130.31 | 34.33 | NA | 997.10 | 7285.50 Cr. |
Objects of the Issue
- To be updated soon
IPO Lead Managers aka Merchant Bankers
- ICICI Securities Limited
- HDFC Bank Limited
- Jefferies India Private Limited
- Kotak Mahindra Capital Company Limited
- Nuvama Wealth Management
- Limited
