Chennai-based micro lender Veritas Finance Ltd. filed draft papers for its initial public offering on Saturday. The company, which is backed by private investors like Kedaara Capital, Norwest Venture Partners, Lok Capital Growth Fund, is looking to raise up to Rs 2,800 crore via its maiden public offer.
The IPO will comprise of a fresh issue worth Rs 600 crore, and an offer for sale worth up to Rs 2,200 crore.
The fresh issue will be used for “augmenting our capital base to meet future business requirements towards onward lending,” as per the lender’s draft red herring prospectus.
As on Sept. 30, Veritas Finance had a loan book of Rs 6,517 crore, with rural business loans making up over 72% of the portfolio. For the half-year ended September, the company reported total income of Rs 720 crore and a profit of Rs 133 crore. The company currently has long term credit rating of ‘CARE A+ with Positive Outlook’ from CARE Ratings.
The lender, which started operations in 2015, claims to have a presence across 10 states with over 400 branches.
ICICI Securities Ltd., HDFC Bank Ltd., Jefferies India Pvt., Kotak Mahindra Capital Co. and Nuvama Wealth Management Ltd. are the bankers for the offering.
. Read more on IPOs by NDTV Profit.The Veritas Finance IPO will comprise of a fresh issue worth Rs 600 crore, and an offer for sale worth up to Rs 2,200 crore. Read MoreIPOs, Business, Markets, Notifications
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