Veritas Finance Ltd, a non-deposit-taking non-banking financial company (NBFC), has received approval from the Securities and Exchange Board of India (Sebi) to launch its initial public offering (IPO), comprising a fresh issue of equity shares worth ₹900 crore and an offer for sale (OFS) by existing shareholders.
According to the company's latest draft red herring prospectus (DRHP), the OFS component will involve the sale of up to 1.28 crore equity shares. The proposed public issue may also include a pre-IPO placement of specified securities worth up to ₹180 crore.
If the pre-IPO placement is completed, the size of the fresh issue will be reduced by the amount raised through the placement.
The company had refiled its preliminary IPO documents with Sebi in July, shortly before the regulatory approval for its earlier public issue proposal was due to expire.
The market regulator issued its final observations on October 19 after examining the revised draft papers, clearing the way for the company to proceed with its IPO.