Veritas Finance Limited

rhp filed

Source: SEBI

Issue price

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Issue size

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Fresh issue

₹900 Cr

Offer for sale

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Risk factors

From the prospectus, ordered by severity. Wording is close to the filing — not softened.

High Credit Risk Exposure
Veritas Finance Limited faces significant risks due to its exposure to high credit risk borrowers, particularly first-time borrowers in underserved households and businesses in India, which constituted 24.72% of its Loans (AUM) as of September 30, 2024.
Credit Risk · high
Dependence on Specific States
83.02% of its branches and 91.82% of its loan disbursements are concentrated in five states, making it vulnerable to adverse developments in those regions.
Operational Risk · medium
Negative Cash Flows
The Company has experienced negative cash flows associated with operating activities and investing activities in the past.
Financial Risk · medium
Reliance on Key Personnel
The Company relies on its Managing Director and Chief Executive Officer, D. Arulmany, and Key Managerial Personnel for its business and growth.
Management Risk · medium
Regulatory Compliance Risks