Chennai-based Veritas Finance, a non-banking financial company, is exploring a private transaction worth ₹800–1,000 crore to facilitate exits for early investors after facing repeated delays in its public listing, three people familiar with the matter said.
Chennai-based Veritas Finance, a non-banking financial company, is exploring a private transaction worth ₹800–1,000 crore to facilitate exits for early investors after facing repeated delays in its public listing, three people familiar with the matter said.
“The transaction is expected to give exits to some of its early backers like Lok Capital and British International Investment (BII), who have been invested in the company for a long time,” one of the people cited above said.
“The transaction is expected to give exits to some of its early backers like Lok Capital and British International Investment (BII), who have been invested in the company for a long time,” one of the people cited above said.
Veritas’ move to explore a private market deal comes as it seeks to improve financial performance and reattempt a listing when public market valuations become more stable and conducive.
“The round is likely to be secondary in nature and could become larger if other investors including Kedaara Capital and Norwest Venture Partners also look to sell some stake opportunistically,” the second person said.
The person added that the company has also held discussions with investment banks including Avendus for a private transaction, although a formal banker appointment is due in the coming weeks.
Veritas competes with Shriram Finance, Aye Finance, Vistaar Finance, Five Star Business Finance, Indostar Capital, Bajaj Finserv, Equitas Small Finance Bank and Lendingkart, among others.
Veritas, Avendus, Norwest, and BII declined to comment while Kedaara and Lok Capital did not respond to Mint’s emails sent on Tuesday.
IPO pause
“While the exact deal terms are yet to be decided, the company doesn’t need much primary capital at this stage so the round will largely be a secondary transaction,” a third person said, confirming the above details.
In a secondary transaction, shareholders sell their stakes to other existing or new investors, and no fresh capital is infused into the company.
Last year, Veritas filed its preliminary draft papers with Sebi to raise about ₹2,800 crore through an initial public offering. It received regulatory approval about four months later in April.
However, tariff wars and geopolitical tensions have since weighed on markets, affecting financial sector valuations and delaying the company’s listing ambitions.
The NBFC also falls under companies eligible for Sebi’s recent one-time extension of IPO observation letters expiring between 1 April 2026 and 30 September 2026, now valid until 30 September 2026. The six-month relaxation aims to help firms facing listing delays due to geopolitical tensions and market volatility.
Deal contours
Veritas’ proposed IPO comprised a fresh issue of equity shares of up to ₹600 crore and an offer for sale (OFS) of up to ₹2,200 crore. Selling shareholders included Norwest, Kedaara, BII, Lok Capital and Growth Catalyst Partners. The company also counts Multiples Private Equity and Evolvence India among its investors.
It had said proceeds from the fresh issue would be used to augment its capital base, support future business requirements and expand lending.
Founded in 2015 by D. Arulmany, Veritas lends to borrowers in the micro, small and medium enterprise (MSME) sector, focusing on inclusive finance for self-employed borrowers. As of 30 September 2025, it operated 510 branches across 11 states — Tamil Nadu, West Bengal, Karnataka, Odisha, Andhra Pradesh, Telangana, Bihar, Jharkhand, Chhattisgarh and Madhya Pradesh — and the Union Territory of Puducherry.
In FY25, total income rose to ₹1,566 crore from ₹1,124 crore a year earlier, while profit increased to ₹295 crore from ₹245 crore in FY24, according to ICRA. In the first half of FY26, the company reported income of ₹871 crore and profit of ₹129 crore.