MC EXCLUSIVE IPOs of SME lenders Veritas Finance & SK Finance likely in August

IPO

Following the listing of HDB Financial, two mid-sized small and medium enterprises lenders – Veritas Finance and SK Finance are gearing to hit the capital market by early next month. Sources say both companies are at advanced stages of conducting roadshows.

While Veritas is looking to raise Rs 2,800 crore (Rs 600 crore of fresh issue and Rs 2,200 crore of offer for sale), SK Finance plans to raise Rs 2,200 crore (Rs 500 crore of fresh issue and Rs 1,700 crore of offer for sale). Interestingly, Norwest Venture Partners is a common investor in both companies and is expected to make a partial exit through these initial public offerings.

Details of pricing are said to be in the works and a final decision regarding the same is expected by end of this month.

Jaipur headquartered SK Finance, which primarily focuses on vehicle finance and SME loans, closed FY25 with a loan book of Rs 13,261 crore up 27 percent year-on-year. The company was incorporated in 1994 and it operates in the North India market, mainly Rajasthan, Gujarat, Madhya Pradesh and Punjab. The lender’s net Profit surged to Rs 379.67 crores (up 21.72 percent) in FY25.

Veritas Finance, a Chennai headquartered non-bank, founded by D Arulmany, a former senior executive at Cholamandalam Investment and Finance Company, closed FY25 with total assets of about Rs 8,400 crore (up 32 percent year-on-year) and net profit of Rs 295 crore (Rs 245 crore net profit in FY25).

While SK Finance received a go-ahead from the capital market regulator for its IPO in September last year, the Sebi cleared Veritas’ IPO in May this year.